Dive Brief:

• Denny’s announced Thursday that it has selected Punchh, a cloud-based marketing solution for restaurants, as its customer relationship platform, according to a company release. The casual dining chain will launch its Punchh solution in December with a goal of better connecting with its guests through a tailored, omnichannel approach.
• According to the news release, Punchh’s platform will allow Denny’s to collect behavioral analytics to develop personalized, one-on-one relationships with its customers and create customer loyalty. Denny’s current systems — including tablets, POS and online ordering — will be integrated onto the Punchh system. 
• “At Denny’s, we’re proud to offer a warm and welcoming experience for all of our guests, whether they’re dining with us in-restaurant or online with Denny’s on Demand. As we continue to find convenient ways for our guests to enjoy and experience all that Denny’s has to offer, we’re excited to partner with Punchh and help us get to know them on a more personal and customized level through the use of their innovative technology,” CMO John Dillon said in the release. 

Dive Insight:

For the past 10 or so years, different technology solutions have turned the restaurant industry on its head — in some cases leveling the playing field for big and small chains by creating access uniformity, but in other cases causing a bigger gap between the brands that can afford such technology and those that cannot. 

Denny’s investment in a CRM solution may be worth it as competition in the industry intensifies, and for good reason. CRM platforms provide real-time insights, such as demographics and purchasing behavior, to help companies hone their marketing efforts and deepen customer loyalty. This technology allows for Denny’s to get to know their customers’ preferences individually and create occasions and suggestive sales based on their habits. For example, Moe’s (another Punchh customer) claims that when a $5 coupon was sent to users who haven’t visited in 120 days, more than 60% of those who redeemed that coupon returned again and paid full price.

Moe’s marketing leader Dominic Losacco told eMarketer Retail that having this CRM-generated information allowed the brand to discount specific customers, instead of discounting “just for the sake of discounting.” 

Punchh’s technology has resonated enough to secure the trust of more than 135 different brands and — with $31 million raised — deep-pocketed investors as well. But Punchh is hardly alone; CRM providers are abundant in the restaurant industry. They give restaurants a direct way to communicate with customers and tailor rewards to drive their behaviors, which can in turn create more loyalty.

And, since loyal customers spend 67% more than new customers, there’s good reason restaurants are increasingly willing to make that investment. And, as much of the U.S. restaurant industry continues to struggle with sluggish customer visits, the best chance to differentiate and thrive in an increasingly competitive environment is to know exactly what your customers want and create a personalized relationship accordingly.