EXCLUSIVE: Hooters takes data-driven approach to loyalty

The parent company of Hooters and Hoots Wings relies on customer personalization and segmentation to drive loyalty engagement.

Christine Ralph, director of loyalty for HOA Brands, recently spoke with Chain Store Age about how the casual dining franchisor employs a highly customer-centric loyalty strategy based on advanced technology for its Hooters banner.

How does Hooters target multiple generations of consumers?

Hooters has built a loyal customer base over the past 40 years since our founding in 1983. Our "secret" sauce is meeting consumers where they are and incorporating features and benefits that appeal to each generation we serve. 

Now, our job is converting those longtime customers into members of our HootClub Rewards loyalty program while simultaneously attracting our younger customers to do the same.

That’s why communication is key. We make certain all our customers, whether they are part of the Greatest Generation, Silent Generation, baby boomers, Generation X, millennials or Generation Z, know how our loyalty program works and how they can easily sign up and participate. 

We communicate across multiple channels, including email, social media, online, and digital and printed marketing collateral, at all our locations. This strategy ensures we reach all generations, regardless of how or where they’re using or viewing HootClub Rewards.

How does Hooters utilize personalized service and experiences to drive loyalty and retention?

With HootClub Rewards, we have an opportunity to create a deeper connection with more customers through personalized communications and rewards. Whether it is a discount on their favorite menu item, a special birthday reward, a dessert to celebrate their loyalty membership anniversary, or an element of surprise and delight, we segment our customers by their preferences, so they continue to feel valued and appreciated to strengthen the emotional connection with our brand. 

Consistent communication is another key to our loyalty program’s success. We send email, push notifications and in-app messages for upcoming rewards or post-visit to engage with and acknowledge guests for choosing Hooters as their place to dine. We also update our creative regularly to keep our customers’ attention and stay top of mind.

This approach has been successful for us. We doubled our click-through rate by simply adjusting our online communication plan and making HootClub Rewards visible and call to actions clearer across our digital channels.

[Read more: Hooters unifies store operations on cloud platform]

How does Hooters utilize customer data to enhance engagement and tailor experiences?

Ultimately, customers want to be known and remembered, and having access to their favorite menu items, order history, frequency, and preferred time and day of the week to visit allows us to connect with them on a much more personal level. 

Having consumer insights at our fingertips removes the guesswork for many of our customers. We can anticipate their needs and customize special offers and menu suggestions with their favorite food and beverages, guaranteeing every customer’s journey and experience feels exclusive.

In addition, utilizing these consumer insights enable us to segment our audience into cohorts and target each with different marketing campaigns and offers, which increases the likelihood of a return visit.

Constant customer feedback is also a vital resource. Receiving feedback from surveys about our food quality, service, restaurant environment, and more allows us to identify areas of improvement and adapt in a timely manner to guarantee we are providing the best customer experience possible.

What role do digital tools and AI play in Hooters' loyalty and customer engagement efforts?

AI plays a major role in helping Hooters make data-driven decisions and build stronger relationships with our customers to ultimately enhance customer lifetime value. We rely heavily on AI to improve analysis and also improve their processing capabilities. 

Utilizing AI, Hooters has been able to make decisions more quickly than we have traditionally been able to because we are getting better quality information, faster. In our future roadmap, we see ourselves further leveraging AI to improve the breadth and depth of our analytics within actionable time windows.

Can you share any future plans for Hooters' loyalty program?

Along with new opportunities for personalization, we are actively exploring opportunities to enhance data-driven decisions on the technology side, as well.

We are also focused on ensuring consistent brand messaging and delivering a seamless omnichannel experience across all platforms, including the app, online, social media and in-store. 

Ultimately, the end goal is not just loyalty but about establishing those strong digital relationships. Although HootClub Rewards remains in its early stages focusing on constructing a solid foundation, we are well on our way to reaching our goal.