Why Wagamama thinks it can redefine loyalty
Wagamama is confident it has "reassessed the whole notion of loyalty" with the imminent launch of its new loyalty app Wagamamastars, which rewards customers based on how they prefer to dine with the Japanese restaurant chain.
How Wagamama thinks it can redefine loyalty
Rather than being based on frequency of visits, the app rewards first-time and infrequent guests, through to loyal repeat customers. Visitors will receive one star every time they spend £10 by ordering via the app, and at the end of a meal, can choose to save their stars to redeem against their food and drink on a future visit, or swap stars to try and win food, drink or a mystery prize.
Consumers can also pay via the app (dine in and takeout), earn prizes, be the first to hear about exclusive news and more.
“When we looked at what we wanted to do with loyalty [we saw that] lots of apps do the basic ‘earn some points and you can spend some points,’ and that is it,” Andre Johnstone, head of digital and loyalty, told The Drum.
“We also realised that with restaurant brands the frequency [or purchase] is quite low. You might visit [Wagamama] three or four times a year so it might take a while to earn enough points to spend anything.
Johnstone said that with the ability to swap points for a potentially immediate reward it is a "much more consumer centric experience."
“We're helping the customer have a more engaging experience over a basic points scenario. We want to have a strong ongoing relationship, understand consumers a bit better and in the future give them more of what they need," he said.
The announcement of the new app comes just weeks after a study by Neilson found that British retail is “drowning in a sea” of loyalty cards. Th report said that while British shoppers are the second most likely in the world to have a loyalty card, after Finland, they’re among the least likely to see or utilise the benefits.
However, Johnstone said he is confident that 'Wagamamastars' will prove successful as the restaurant brand is trying to make it “really useful” to diners.
“I’ve read lots of articles that say apps are dead, but actually there are too many rubbish apps out there and what we are trying to do is make our app really useful,” he said. “Apps that are really useful mean people tend to keep them and if we can keep building things that really benefit the customer then that’s what we will try and do.”
Data collected from the app will help Wagamama deliver more personalised content and offers through other marketing channels such as its email newsletter called The Good Feed. The brand is trying to place a greater focus on both content and personalisation via the medium, so rather than just being focussed on food, Wagamama is aiming to come across as more of a “lifestyle brand”.
The app will launch over the coming months and will be free to download and use on Android and iOS.