Metrics | Foodservice Marketing

2011 in Review

On 02.06.12, In KPI's, Metrics, by Paul Brancky

Once again our year in review statistics and KPI’s continue to demonstrate that Foodservice Rewards is a compelling program to reach and engage Operators. Below is a review of 2011 activity and trends within Foodservice Rewards for North America.

Sponsors and Products: There were 29 active Sponsors in the program. During the year Operators were able to redeem codes from 140 brands and 2,874 SKUs –representing a compelling portfolio of potential reward points to drive engagement.

Labels: BI shipped 96,691,594 labels to more than 150 manufacturing plants actively labeling in North America. That’s a 6% increase in cases labeled versus 2010.

Redemptions: During the year, a record 20,370,658 cases were redeemed by 84,302 operators (think reach). That’s an average of 242 cases redeemed per operator (think engagement).

New Enrollments – We also experienced a record number of 21,553 new enrollments in 2011, up 7% over 2010.

Attached Operators: On average, Sponsors have over 35,000 unique operators “attached” to them through code redemption of products they’re labeling. In terms of unit reach this unique visibility creates an opportunity to manage and influence a “down the street” customer base as large as many chain accounts. For perspective, McDonald’s and Subway operate about 33,000* and 36,071* restaurants, respectively. (*Source: McDonald’s and Subway Corporate web sites on 1/30/12)

Redemption Rate: From a Sponsor perspective the average redemption rate was 20%. That means Sponsors (on average) have visibility to 20% of the operators buying participating products as well as the opportunity to track, retain and grow them.

Acquisition Analysis: The average Sponsor had an Acquisition Contribution (A/C) Score of 67%. This means that, on average, Sponsors paid for 67% of their total Foodservice Rewards investment with newly acquired customers*. (*New customer defined as an operator being a Foodservice Rewards member for at least 90 days and not redeeming a product code from that Sponsor during that period.)

Promotions: Sponsors ran 146 promotions in 2011. The average promotion resulted in 9,219 incremental cases being redeemed by 1,220 Operators with a calculated ROI of 274%.

2011 Foodservice Rewards Operator Metrics

On 01.17.12, In KPI's, Metrics, Reporting, by Lisa

After 10 years, Foodservice Rewards continues to deliver…

2011 remained a difficult year for the foodservice industry. However, Foodservice Rewards continued to show increased operator enrollment numbers. Transitioning these operators to true “Foodservice Rewards” mavens with ongoing engagement has become more of a challenge (2012 gamification promotions will assist). One thing remains clear from our FSR_KPI_Reporting_Q4_2011, when an operator engages, they continue to increase purchases among the participating products and sponsors of Foodservice Rewards.

How Operators enter Reward Codes

On 08.18.11, In Metrics, Operators, Reward Code Labels, Rewards, by Lisa

97.4% of reward codes are entered on-line at www.foodservicerewards.com

In case you’re wondering, operators enter reward codes in the following manner:

Key in on line = 83.3% of codes

Scan in on line = 14.1% of codes

Mail in = 2.6% of codes

…taken from all entries January 1, 2011 – May 31, 2011

Operator Enters 100,000,000th Reward Code

On 07.14.11, In Metrics, Operators, by Tiger

Healthcare operator enters the one-hundred millionth reward code…

…and WINS 50,000 Bonus Points!

Congratulations to Rich Burlingame of Great River Health Systems, who entered the 100 Millionth Foodservice Rewards product code on Friday, June 9, 2011. Rich has been participating in Foodservice Rewards for just over 5 years.

Here is what Rich had to say about Foodservice Rewards and his big win!

“I really like it when I see product case come in with the bright yellow and black FSR label. I remove them, and make a pile of them by my computer. I admit that I let them accumulate for a while before I enter them. I see the stack, and tell myself I need to make some time to get it done….. I sure do not know what made me decide to make the time to enter my large stack of codes last week, but I am so thankful I did it. I smile when I think that during that “tedious” chore, I entered the One Hundred Millionth code!”

Rich Burlingame
Director of Foodservice
Great River Health System
West Burlington IA

100 Millionth Code? Place Your Bets

On 03.23.11, In Meetings, Metrics, Reward Code Labels, by John Neupauer

Time to start the betting pool: When will the 100 millionth reward code be entered?

Here is a Foodservice Rewards® Sponsor Update for your review.

This update includes information about:

* A milestone celebration,
* The next Sponsor Meeting date,
* A cool new metric for you, and
* An update on our marketing efforts.

As always, please contact Aaron, Ashleigh, Marty, Tyler or me with questions, comments, and ideas. Thanks!

What’s your AC Score?

On 03.21.11, In Metrics, by John Neupauer

A new program measure shows that on average, 50% of the cost to sponsor Foodservice Rewards is funded by new customer acquisition…

Most of you are aware of an exciting new measure we’ve been working on for a few months – Acquisition Contribution. It really is exciting, as you’ll see. This measure looks at the financial impact newly acquired operators have on Sponsors.

We compare a Sponsor’s total program spend to the revenue (margin) generated by their new customers. We found (Coalition Average) that 50% of the cost to participate in FSR is funded by new customers. That’s right, half of the program cost is self-funded through the acquisition of new customers.

Here’s how it works:

This measure is based on spend and new customer redemptions for a 12 month period. We identify new customers redeeming during that period and record their case redemptions. Here’s the new part…”New” customers are defined as operators who have been enrolled in FSR for 90 or more days before redeeming from a Sponsor for the first time. It’s the 90-day gap between enrolling and entering product codes that’s the key. On average, new enrollees to FSR redeem product codes within the 1st 20 days after joining. If an operator was already buying a Sponsor’s product, the operator would likely have entered codes before 90 days. By using a 90-day window to define an operator as new, we’re taking a conservative and realistic measure of new business through FSR.

To get our AC Score, we compare a Sponsor’s total program spend for 12 months to the margin generated from new customer’s redemptions for 12 months.

Two things…

1) Please feel free to suggest a new name for this measure.
2) To provide a realistic measure, Sponsors must be in the program for more than 2 years.

2010 in Review

On 02.10.11, In KPI's, Metrics, Reporting, by Lisa

The Year in Review shows that Foodservice Rewards continues to deliver results in spite of the tough economic environment that hit commercial “street” restaurants particularly hard…

According to NPD’s Fall 2010 ReCount®, the number of independent restaurants declined by 5,460 units (or two percent) last year. In spite of those numbers – or perhaps because of the resulting margin squeeze – operators joined Foodservice Rewards in record numbers.

Enrollment – 21,361 new operators enrolled in Foodservice Rewards last year. This is a 17% increase from the past two years where enrollments hovered around 18,000. Our new Enrollment Specialists contributed to the growth completing 16,978 calls and enrolling 1,928 new operators.
Redemptions – 81,458 operators redeemed 18,838,629 cases last year. That’s an 8% increase in redeeming operators and cases.
Labels – 98,586,177 or 13% more labels were shipped to 259 plants in North America in 2010 than in 2009.
Promotions – 149 promotions were run in 2010, a decrease from 167 in 2009. This was the first decrease we have seen and was driven by tighter sponsor budgets. Promotion results improved to an average ROI of 256% or 11,729 incremental cases redeemed by 1,264 operators.

The 4th quarter KPI’s provide additional insight and are a positive measure of Foodservice Rewards continued value to our industry partners.

Code Entry vs. Invoice Submission?

On 02.10.11, In .com, Metrics, by Tiger

The new code entry pages on the re-designed website are producing record-breaking code entry days…

Below is the trend data for reward codes entered by day following the website redesign:

27-Jan: 71,507
28-Jan: 71,320
29-Jan: 42,518
30-Jan: 39,891
31-Jan: 75,879
01-Feb: 72,255
02-Feb: 71,338
03-Feb: 78,631
04-Feb: 80,035
05-Feb: 44,344
06-Feb: 37,740
07-Feb: 86,459
08-Feb: 81,648
09-Feb: 82,320

I’m pretty sure the 86,000+ code entry day sets a new record. Funny, in the early days of Foodservice Rewards, our biggest manufacturer objection to participation was: “operators are too busy, they’ll never enter codes” or “operators prefer to mail invoice copies”. Mythbusters!

Foodservice Rewards Index to Market

On 10.22.10, In CHD, Metrics, Technomic, by Lisa

Foodservice Rewards enjoys the support of over 100,000 active members in North Amercia. In some segments, over 75% of all units participate in the program…

Each year Technomic releases their market summary chart detailing projected growth and number of units for the many segments of foodservice. The foodservice market is mature and programs like Foodservice Rewards help both operators and branded manufacturers grow their business. The index to market chart shows Foodservice Rewards current penetration by unit against each segment-Impressive!

(Note – CHD data was used to determine 1-9 unit counts in the Restaurant & Bar segments)

2010 Elite Tier Snapshot

On 05.01.10, In Metrics, by Tiger

We enjoyed a 16% gain in Elite Tier operators in 2010…

In 2010, 9,491 operators qualified as Elite by meeting thses criteria:

1) Redeemed or more 5 participating brands
2) Redeemed at least 360 cases
3) Earn points from at least 2 bonus promotions

That’s a net gain of 1,317 Elite tier operators over 2009, or a 16% improvement. Our 2010 Communications plans include:

1) 1/20 eNewsletter announcement to Elite qualifiers
2) Quarterly Elite eStatements (March, June, October)
3) Ongoing message in Message Center
4) Link in Message Center to document of Elite benefits

Here’s a snapshot of the top 20:

Sorted by brands redeemed – 13 Restaurants are in the top 20. The top operator is a Restaurant that redeemed 71 (72%) of the 99 brands in the program!

Sorted by brands redeemed – 55% of the top 20 are Self-operated.

Sorted by cases redeemed – the top 20 is a equal mix of segments including B&I (4), Education (3), Healthcare (3), Other (3), Retail (3), and Travel & Leisure (4).

Sorted by cases redeemed – 11 (55%) are Self-operated, only 1 Contract Feeder made the list, and no Independent Franchises made the list.

Sorted by promotion participation – Restaurants again are the big winner, with 9 Restaurants making the top 20.

Sorted by promotion participation – Self-ops contributed made up half the top 20.

Foodservice Marketing