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Since its debut in February 2013, Patxi’s Pizza’s mobile loyalty program has helped the company increase both transaction volume and spend averages. Patxi’s Pizza’s partnership with Thanx has also helped the company refine its most loyal customer list, and adding benefits and incentives for them.
Patxi's Pizza chain has 13 locations in California and Colorado, and its newest location in Seattle. Since the launch of the mobile loyalty program, there has been a 33% increase in average check size among Thanx reward members and a 30% increase in frequency of return to any of the restaurant’s locations.
Thanx provides Patxi’s with a dedicated account manager who helps onboard new stores, and conduct manager training sessions and refreshers for existing staff. Thanx provides feedback on the program and delivers ROI measurement and reporting on a regular basis.
Patxi’s program is card-linked, meaning customers need to use the same credit card or debit card each time they eat at Patxi’s to earn rewards. Thanx VIP launched in October 2013 and targets the top 2% of Patxi’s Thanx spenders.
Robert Notte, Chief Technology Officer for Patxi’s, and Silvana Porceddu, Marketing Manager for Patxi’s, participated in a Q&A with Loyalty360 and talked about the loyalty program and its impact.
What customer insights have you gleaned from your loyalty program that have allowed you to positively impact the program?
With Thanx, we discovered that we had a really small, but high value group of loyalists who contributed a huge amount of the overall spend at Patxi’s (8% of total users). So we realized these are really high value customers that we don’t want to lose. Using Thanx, we were able to discover who these customers were, and engage directly with them by granting them an extra “VIP” reward.
We can also anticipate if customer behavior is changing, and reward or incentivize when needed. For example, our Thanx dashboard allows us to see customers whose behavior indicates that they are “At risk” of slowing their visits. We can then target these users and deliver an incentive to get them back in the door. We also have the ability to track the efficacy of the reward, all in a digestible format in the dashboard.
How do you define loyalty, what does it mean to your organization, and how has it changed in recent years?
We define loyalty as deepening the relationship between our guests and Patxi’s. Loyalty allows us to have the opportunity to reward our loyal customers and provide incentives for new guests. It also gives us the ability to understand their purchasing behaviors so that we can be much more relevant in our messaging.
Loyalty has evolved with the progression of mobile and integrative credit card technologies. Also, big data provides an additional layer of analysis that can lead to key insights, trends and opportunities.
What does Customer Experience/Customer Engagement mean to your organization?
We know who our guests are, which products are relevant to them, how to tailor our messaging in order to connect directly, and have the ability to engage with them outside of the restaurant level.
Marketers are tasked to be more data-centric than ever before, yet the challenge of creating actionable insight from data is more challenging than before. What is your advice for marketers?
Making sure to have the right talent, the right partners, and tools. By leveraging these resources, actionable insights can be attained without having an army of data scientists.
Can you offer our audience a high level overview of your customer philosophy and share how this perspective helps drive more effective engagement and better marketing outcomes?
We invite guests who are starved of time and diverted by distraction into the exciting, entertaining, and authentic world of Patxi’s. At Patxi’s, they can be themselves while they connect and converse with people that matter to them.
Served caringly with hand-crafted pizza of uncompromising quality and flavor, our guests feel nourished and refreshed. The Patxi’s experience is a cherished moment that bridges generations, restores balance in their lives, and gives meaning to ours.
Our philosophy allows our team members to engage with our guests with excellent customer service. Our uncompromising customer service and high quality pizzas lead to customers joining our loyalty program, utilizing our convenient online ordering system, phone orders for takeout and delivery, and our innovative and patented Pic-A-Pie program.
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