SUBSCRIPTION SERVICES
C
hanging philosophies about ownership, a pandemic-driven rise in e-commerce and uncertain fi nancial times have led to an explosion of the subscription economy. Across industries, subscription models are off ering
customers a lower-cost, on-demand alternative to buying. Today’s consumer doesn’t need, or expect, to own CDs, DVDs or even their own car when they can access music, fi lm and transport when and where they need it on platforms like Netfl ix, Spotify and Cazoo. Now, creative restaurant operators are exploring the possibility of bringing the same ideas to the foodservice industry. Subscription models and novel reward programs are opening new opportunities for operators to attract and retain customers at a time when normal operation has been radically disrupted and brand loyalty is wavering.
In a GlobalData survey, 75% of people
said they still feel concerned about visiting stores, and 67% purchase on-the-go food and drink less often than they did before the Covid-19 pandemic. In the last two years, lockdowns have driven people out of city centers and workplaces and done away with the commute and the offi ce lunchbreak. Even though many organizations are beginning to return to the offi ce, working from home is here to stay, and coff ee shops and other foodservice providers are dealing with dramatically reduced footfall. At the same time, 39% of customers, mainly Gen Z and Millennials, are deserting trusted brands for new ones, according to McKinsey. Foodservice locations must get creative to revive their customer base. The pandemic has already heralded
‘the return of the milkman’ – a resurgence of demand for subscription milk delivery services. Subscription, membership and reward schemes, run from mobile apps, are giving foodservice operators the chance to communicate directly with customers, design novel experiences and generate new
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brand loyalty. For customers, they off er greater control, reliability and convenience during uncertain times. “It’s no surprise to see [the subscription model] migrating into foodservice,” says GlobalData consulting director Mark Dempsey. “Today’s customer is all about this kind of solution: it’s online, it’s ultra- convenient, it’s set up to fi t with their lifestyle completely.”
Signing up Modern commercial loyalty schemes date back to the 20th century, with Green Shield reward stamps for shoppers reaching the UK in 1958 and American Airlines’ Frequent Flier program being launched in 1981. Designed to encourage returning customers by allowing them to work towards a goal and giving them the feeling of being recognized for their patronage, loyalty schemes nurture loyal customers and give companies a unique competitive edge. Today’s companies are using technology, including advanced analytics, to take this idea further and provide customers with new, exciting commitment options. Just last month, McDonald’s announced
its new MyMcDonald’s Rewards scheme in the UK. The scheme enables customers to collect points for each purchase on the app and redeem them against menu items
“Today’s customer is all about this kind of solution: it’s online, it’s ultra-convenient, it’s set up to fit with their lifestyle completely”
EAME
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