New market research conducted by restaurant solution provider Paytronix Systems finds a definite correlation between technology adoption and eagerness to join loyalty programs or subscription services. High-tech consumers — those who own the greatest number of connected devices — are, in general, particularly eager to engage with their favorite restaurant brands, as are millennials and bridge millennials.
According to the research, 60% of high-tech consumers participate in loyalty programs at quick-service restaurants (QSRs) and 75% do so at table-service restaurants. Additionally, high-tech consumers are far more aware of and eager to adopt subscription programs, with 40% being “very” or “extremely” familiar with restaurant subscription services, vastly exceeding the 21% average for the general sample surveyed.
Restaurant loyalty programs deepen already strong relationships between brands and existing customers. Many of these valuable consumers are eager to try subscriptions, a development that has strong potential for both table-service restaurants and QSRs. Restaurants that adopt these initiatives — both loyalty programs and subscriptions — will be best positioned to succeed in today’s competitive era of dining.
Among the key findings:
- High-tech customers see mobile apps (56%) and the ability to pay online (57%) as factors that would lead them to increase their spending.
- Loyalty And Rewards Programs motivate a far greater share of high-tech consumers (51%) than average consumers (37%) to spend more. Such programs are more likely to entice millennial consumers and those with high incomes.
- QSR and Table Service loyalty programs are critical builders of restaurant affinity among high-tech consumers. While 60% and 75% of high-tech consumers use loyalty programs at QSRs and table-service restaurants, respectively, just 39% of consumers on average use them at QSRs and 44% do so at table-service restaurants.
- Mobile Apps are the most popular way all consumers connect with loyalty programs. Many high-tech consumers use mobile apps to connect with QSR (72%) and table-service restaurant (79%) loyalty programs, and 67% and 55% of mainstream technology consumers do the same, respectively.
- Subscriptions – 34% of high-tech consumers already are enrolled in a subscription program, and 27% of high-tech nonsubscribers are “very” or “extremely” interested in restaurant subscriptions. High-tech consumers interested in subscription services also are much more likely to enroll in subscription services at both QSRs and table-service restaurants (61%) than the sample average (50%).
Download the full report (registration required): “The Digital Divide: How High-Tech Consumers Connect to Subscription and Loyalty Offerings“