The casual dining market is undergoing a rapid evolution due to changing customer habits and rising costs in a competitive landscape. Cost-conscious diners are on the rise, looking for dining experiences that offer value for their money.
However, squeezed budgets notwithstanding, eating out continues to be popular and the global market for casual dining is expected to grow significantly. In such an environment, it's crucial for businesses to assess their strategies and be ready for changes in the market.
Our client, a casual dining chain, had a history of providing deep discounts to customers. However, these promotions did not add value or effectively contribute to the business growth. So, they aimed to transform their discount model by investing into a structured loyalty program while improving their pricing strategy simultaneously.
We began by evaluating how the current pricing and promotions were performing. The detailed review included the existing strategies to identify areas for improvement.
Our team then undertook extensive customer research to understand price expectations and perceptions of various loyalty offerings.
Next, we conducted detailed scenario modeling to help our client plan for the future by addressing potential risks and capitalizing on opportunities. By using advanced modeling techniques, we created multiple scenarios to forecast how different loyalty programs and pricing strategies would affect sales and profitability.
We followed this up by developing a robust business case outlining a two-year plan. It was designed to implement a new loyalty program in phases, minimizing the risk of disrupting existing sales while maximizing long-term benefits for our client.
Our client launched a successful loyalty scheme that has been running for two years, surpassing expectations for new sign-ups and fostering customer engagement.
They also rolled out a new pricing strategy that aligns with market dynamics and customer behavior and preferences. This enabled them to stay competitive in the market while optimizing their revenue generation.
The new loyalty scheme and the strategic pricing initiatives had a direct impact on customer value perception. Our client has seen a significant improvement in their consumer value perceptions, resulting in higher customer loyalty and market share compared to competitors.
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