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Make No Misteak:How Morton’s Uses Their Database to Drive Loyalty
Make No Misteak:How Morton’s Uses Their Database to Drive Loyalty
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Our Agenda
Who is Morton’s The Steakhouse?
Strategy for InsightsSolution
Impact
Focus On the Fives: Guest Experience Management
Situation
Solution
How We Use it Today
Summary
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Morton’s The Steakhouse
World’s largest Owner‐Operator of upscale steakhouses
Premier Brand, well‐established 33 ‐ year history
High quality cuisine. Consistent service and experience
Focus on high‐end consumer, business traveler and special occasion users. (Approx. 80% expense report)
Strategic Marketing Programs and Experiential Events Official Steakhouse of the PGA TOUR
Award‐winning reputation
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High Quality Cuisine
The “Best Steak Anywhere” featuring USDA Midwest, grain fed,
prime aged beef
High quality ingredients cooked to exacting standards
Broad menu appeals to many taste preferences
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Our Strategy
What We Knew
The Morton’s Guest: Demographics– Highly affluent
– 35 to 64 years old
– HHI of $100,000+
– Elite interests and activities
• Sports: Golf, Tennis, Skiing
• Leisure: Wine
• Professional: Career‐Oriented
What We Needed To Know
The Morton’s Guest: Behaviors– How often they visit
– How much they spend
– Guest Retention
Actions– Where/How to invest in
building guest relationships
– Expand VIP Program
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Our Solutions
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CampaignHistory
Search
Guest Experience
WebLog File
CampaignHistory
Email ClickThroughData
EnablingTechnologyData Integration
Guest Experience MappingAppropriate communication at different touch‐ points (don’t mix marketing with service)Idealized Interactions
Social
Mobile Log FileApp Data
Strategy
CallCenter
Display•Version•Funnel
WebClick
MobileWeb
In-Store
DM•Promotional
•Launch•Catalog
Email•Service Message
•Lifecycle Marketing•Trigger
•Promotional
Interaction Layer
Data Layer
POS Integration
Insight
Research into VOCo Needs/Expectations
Segment ViewpointSatisfaction
Segmentation
Consistent versioning of messaging, where appropriatePrioritization of outbound Recognition in “always on” environments
Predict range of behaviors
o Stimulus responseo Expected value
Optimizationo Prioritized contacts
Channel propensities
Modeling
Browsing
WebProperties
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The Solution
Step 1: Compile a fact base for analysis
– Reservation data
– Point Of Sale data
– VIP data
• Build householding algorithms, get more data
– Name / Address
Step 2: Build Analysis– Value of a VIP
– Retention statistics
Step 3: Build Applications
– Database
– VIP Expansion
– Lifecycle Marketing
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Fact Base
POS TransactionsPartial nameCheck # / $
ReservationSystem
TimestampsEmailphone
NationalAccounts
OnlineTransactions
LoyaltyDatabase
NameAddress
Email/phoneExternal
Data(appends)
Consolidated viewOf the Guest Relationship
Raw Data Processing
A mix of internal and external data sources combine to build a cross-location, customer-level database With a customer / household
algorithm built, all behavioral data available was summarized for analysis
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AnalysesPercentage of Guests Percentage of Revenue
Findings Impact/Recommendation
First-time diners have low repeat visits Build a contact strategy to develop relationshipsVIP program is successful Strategically grow (statistical modeling)
Clear behavioral segments existDevelop promotional strategy appropriate to guest base
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What We Learned
Value of our loyal guests
Behavioral insights were developed to classify Active Guests: – Guest Value and Guest Engagement
Guest Value results in a distribution analysis of revenue:– 50% of revenue from 10% of guests
– Morton’s guest portfolio epitomizes a concentrated revenuedistribution
The Morton’s brand appeals to a niche of consumers– Strategy focus on CRM based approach vs. mass marketing
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Applying The Learning
Guest Database
– Behavioral segment scoring
– Reporting and tracking
– Source for marketing programs and list
Promotional Targeting– DM/EM
– Lifecycle marketing
Guest Satisfaction
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Impact
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The Impact
Identify marketing opportunities
– Before working with CAC we would mass marketing everything to everyone and mass prospecting
– Now we are taking a Guest Relationship Marketing approach to managing existing guests while simultaneously acquiring new guests
– Communicating the right message to the right audience
– First we had to understand the Lifecycle of a Morton’s guest:• Getting a potential guests attention
• Educating them on what we had to offer
• Turning them into a paying guest
• Keeping them as a loyal guest
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The Impact
Lifecycle Marketing
– Active Guests – guests with an existing relationship
– Acquired Guests – first visit within the last 9 months
– Lapsed Guests – guests who has not dined within last 2 years
– Prospective Guests – guests whom have never visited
Focused Strategy and Investment differently to guests at various stages of their relationship with the brand via direct mail and email marketing
– 2009 we focused primarily on lifecycle management, and distributing our circulation to the most profitable guest groups.
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Morton’s The Steakhouse
Focus on the Fives
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Guest Satisfaction
Importance of Guest Satisfaction
– Improve Guest Retention & Frequency
– Increase Guest Satisfaction & Loyalty
– Strengthen Guest & Brand Recognition
– Competitive Advantage
– ULTIMATELY build our business and remain THE BEST STEAKHOUSE WORLDWIDE!
We wanted guests to provide feedback, but wanted an unobtrusive way of asking for their feedback
– This led to the survey invitation being printed at the bottom of the guests receipt
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Guest Satisfaction
Issues with this process:
– Channel: Survey invitation was at the bottom of the guests receipt
– Survey: Questionnaire was too long (30 questions) led to low response rate and a high abandon rate
– Reporting: Quarterly which didn’t allow for quick action
All of these issues = Actionable Insight
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Solution
Channel
– Move from receipt to email
– Build trigger email (show example)
Survey– From 30 questions to 10
– LINKED TO GUEST INFORMATION
Reporting– From quarterly to real‐time
– Portal
Insight
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Building The Link: To Email
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New Instrument
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Multi‐Channel
Move beyond internal surveys
Incorporate public / social ratings from public sources
Incorporate competitors’ ratings at a local level for comparison
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Results
Number of survey responses, per month:
30-50
2,000-3,000
2009 2010-2011
New Process1,500-2,500
Other sources
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MeasurementsReal‐Time Reporting
– By location
– By segment
– By time period
– Includes open‐end comments
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What We’ve Learned
With significant sample size, we have:1. Quantified the value of a “5” rating versus a “4”. This is driving
organizational change and management of operations.2. Statistically modeled what aspects of delivery most lead to
satisfaction (service, wait time, food quality, etc.)3. Built loyalty scorecards for each location, each month, so they can
review their results
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How We Use It Today
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How We Use It Today
Operational measurement
– Actionable information that we can access on a local, national, regional and company‐wide level
– Look for trends, problems and areas of opportunity
– Holding our General Managers accountable and making Problem Resolution a Priority
Data‐driven Leadership– Prime focus of our CEO, Chris Artinian
– Drives high quality decisions
• Drives strategic, long term initiatives
• Framework for operational decisions (day to day)
– Turn data into insights
– Turn insights into action
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Loyalty Scorecards
Establishing metrics and accountability down to a location level
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Competitive Benchmarking
We compare ourselves within each local environment
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How We Use It Today
Taste of Food
– Top driver of top box Overall Satisfaction
– Of all the survey measures, Taste has the greatest impact in differentiating a “4” experience from a “5” experience
– Vital to our brand: Exceptional taste must be consistently delivered for every single guest on every single visit!
Problem Resolution– Target frequently heard complaints to reduce occurrence
– Increase Attentiveness, especially for those guests experiencing a problem
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How We Use It Today
VIPs and Fanatic Guests
– Our best segments account for 20% of our guests and over 50% of our revenue (VIPs are the top 1%)
– Crucial to keep these guests happy and coming back (‘4’ experiences can cut future visits/frequency in half)
First‐Time Diners– 80% of guests don’t come back
– Important to identify first‐time diners and pay special attention to their questions, concerns and needs
– Make sure first‐time diners leave the restaurant excited for their next visit
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Summary
Build analytic fact base and analyze
Identify opportunities to leverage information
Test marketing concepts, refine
Push to find more ways to utilize customer information to influence decision making
– Guest Satisfaction
– Competitive Benchmarking
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Thank you!
Brad RukstalesPresident & CEOCAC Group, Inc.brukstales@cac‐group.com(847) 805‐9802
Patty PleussVice President, MarketingMorton’s The Steakhouse