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Mobile Marketing Strategies For Restaurants

Did you know that 33% of 25-34-year-olds expect to pay with their mobile phone at restaurants. In this week's episode, we're covering the mobile marketing strategies for restaurants. Grab your knife and fork and let's get into it.



pulsate academy episode 7 mobile marketing restaurants

Here's a still of this week's Academy whiteboard. Click on it to open a high resolution image in a new tab!

.@PulsateHQ Academy EPISODE #7 [WATCH] Mobile App Marketing Strategies For Restaurants



So, what are the challenges facing QSRs? Technology is probably the biggest one. It's changing so fast, how do we keep up? Millennials, they're probably the biggest demographic to engage with for QSRs, 18-35-year-olds, mobile payments, it's all really important to integrate this into your app. Low-level of brand loyalty, how do you differentiate with a competitor? The QSR market is so competitive at the moment; how can you really stand out amongst a crowd? Loyalty, loyalty, loyalty, it is so important.


It's unbelievably important. We keep on harping about it here in Pulsate. I know Patrick himself has done a whole video on loyalty, so I'm not going to go into it that much. There's going to be plenty on it in this episode as well. And no two restaurants are the same. Grouping restaurants is really important for QSRs, whether it be a stand-alone store somewhere or if there's a couple of restaurants together within a mall. You have to treat them completely differently when you're marketing and advertising to that customer.

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33% of 25-34-year-olds expect to pay with their mobile phone at restaurants

So, who is really leading the way? Subway is a great example of someone who has integrated their whole loyalty and mobile payment system into the app itself. Paydiant by PayPal is powering that at the moment, and it's going really well.  Probably the leading light that's really done the most incredible stuff around mobile payments and loyalty, is Starbucks. And they've really been leading the way in the industry over the last while.


They've currently got a loyalty card system that they're looking to take totally digital. And in 2014, they had 2.3 billion, 14% of mobile payments, so that's absolutely massive. Another one, again, deploying mobile payments is Burger King. They're looking to, again, integrate to that contextual information with their loyalty program. And they're targeting consumers with deals and information around that, including their location.


We've got another couple of big players in the game. Wendy's, first company to roll out mobile payments all over the United States. They actually have a really cool system where you go up, you pay, it generates a code, you show this to the cashier, and then it destroys itself within five minutes. And McDonald's, again, doing some really cool stuff, integrating a loyalty app. Specifically, they looked at integrating mobile payments and really taking it a lot further than you can at the moment.


There's a lot of potential here for other QSRs to really follow the lead that some of these companies have set. And there's also a chance for them to get ahead because it's really difficult for someone like McDonald's or Burger King, they're a huge, global organization, so it's difficult for them to get full buy-in from a global mobile payment system. Some of the use cases you can do as well, location and time, geofencing at your own store, offering it to loyal customers if you have that already integrated into your app.


Again, on-site, including beacons, some great stuff you can do around rewarding users and really getting them into the store and buying the food. And also conversations, starting conversations on social media, the ability to share that with friends, redeeming it and gamifying the whole experience of the app is really, really important.


35% of QSRs and 20% of fast casual restaurants currently offer mobile payments

A couple of quick stats as well around the QSR industry, 35% of QSRs and 20% of fast casual restaurants currently offer mobile payments, and that's only going to increase. 31% of consumers use mobile devices to view menus at least once a month, and 27% of consumers order from a restaurant website or app at least once a month as well. So some really impressive stats there around the whole ordering and engaging with the mobile device. And these stats are 2014, so they're only going up in 2015.


So to summarize. Challenges, we have to keep up with technology, have to keep up with the millennials. That's the main demographic that's going to drive the QSRs really up in terms of increasing the revenue. Loyalty, again, really important. Integrating a loyalty program with a whole integrated payment system, as well, like Paydiant and the PayPal, that's something that's really, really useful, and it's really easy to do.


That's some great stuff from those guys. Starbucks, again, have really shown the way in mobile loyalty and mobile payments, a massive amount of money going through there. And again, Wendy's and McDonald's and even Burger King integrating those loyalty programs and mobile payments, introducing it. It's coming on, and in 2015, 2016, it's going to be a huge year.


And so that about covers it today for QSRs. And I hope you enjoyed this one. And you can reach us at the PulsateHQ Twitter tag, or you can reach me at my email below for any further questions about this video. Chat to you again next week.

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pulsate academy episode 7 mobile marketing restaurants