Restaurant Loyalty Programs’ Birthday Rewards Don’t Win Over Many Consumers

Restaurants touting their birthday deals to win over digital loyalty members may find that these offers do not go as far as they might expect, PYMNTS Intelligence suggests.

By the Numbers

The new study “Personalized Offers Are Powerful — But Too Often Off-Base,” a PYMNTS Intelligence and Amazon Web Services (AWS) collaboration, examines U.S. consumers’ preferences regarding personalized merchant offers, among other matters.

The report draws from a census-balanced survey of more than 2,500 U.S. consumers in October to discover how they view the personalized offers they receive from merchants and what drives them to consider switching merchants.

In fact, the study found that only about 5% of consumers cited birthday or anniversary discounts as the personalized offers they are most interested in receiving from merchants in the next three months.

Instead, consumers would be most motivated by discounts and promotions all year long.

The Data in Context

Despite this relatively low interest in these kinds of rewards relative to other types of offers, many restaurants continue to tout birthday rewards as a key draw. Lists dedicated to these deals show dozens of offers from leading brands including Starbucks, Chipotle, Pizza Hut and more.

When it comes to rewards programs, offering the right perks is more important than ever, with brands across the restaurant industry stepping up their loyalty efforts. Throughout this past year, eateries have been relaunching their loyalty programs with new approaches to rewards, with brands ranging from Subway to Domino’s to Jimmy John’s, among others, doing so.

The findings of this study have important implications for restaurants looking to improve their loyalty programs. Instead of relying solely on birthday and anniversary discounts, restaurants should consider offering year-round promotions that provide ongoing value to their customers. By personalizing these offers based on individual preferences, restaurants can create a more engaging and rewarding experience for their loyal patrons.