How 5 Iconic Food & Beverage Brands Build Customer Loyalty and Increase Repeat Sales — Digital Silk Report

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The food and beverage e-market growth is projected at $22 billion annually through 2021 as brands in this industry are turning to digital to reach new markets, as well as retain existing customers. Digital Silk outlined the digital strategies five market leaders use to grow customer loyalty.

The food and beverage (F&B) e-market growth is projected at $22 billion annually through 2021 as businesses in this industry are turning to digital to grow their brands.

F&B companies are coming up with innovative digital strategies to grow their brand loyalty and incentivize repeat sales which -for some- can constitute well over 1/3 of the overall revenue.

The top digital strategies that help F&B businesses grow customer loyalty include optimizing the website, investing in an app, focusing on efficiency and deliverability, striving and allowing for personalization, appealing to emotions and rewarding loyalty.

Digital Silk, a global digital agency, identified five examples of the leading F&B brands who have used digital channels and strategies to increase brand loyalty and repeat sales:

1. Domino’s Piece Of The Pie Rewards
In 2019, Domino’s famously rolled out a new loyalty program via their branded mobile app that rewards users 10 points every time they buy a pizza, either from them or their competitors. With 60 points, the user gets a free medium-sized pizza.

The program was successful because Domino’s reduced their advertising budget, tapped into the competition’s customer base, amplified the promotion via social media and leveraged the large digital trend of community-building.

2. Starbucks Rewards
As a company known for using big data to tailor their experience to audience preferences, Starbucks has successfully grown their rewards memberships each year by leveraging data trends.

The loyalty program includes a card linked to a user’s account which can be used to buy fidelity points, gifts, credit, etc, and it collects consumer points to issue rewards.

The impact of Starbucks’ program comes down to tailoring experiences online and in-store, employing omnichannel tactics to maintain engagement, personalizing elements like birthday rewards and continuously improving and incorporating new insights through data analysis to stay relevant.

3. Pepsi’s PepCoin
Pepsi launched its first ever cash-back loyalty program in 2019, called PepCoin by PepsiCo, which partners with PayPal and Venmo. When a consumer buys a single-serve PepsiCo beverage and Frito-Lay snack together, they simply scan the codes on the bag and under the bottle cap with their phone to accumulate money.

PepCoin benefitted Pepsi because it capitalized on the popular coin trend by integrating cyber finance, was accessible entirely through mobile devices, included a branded app alongside trusted third-party financial services partners and used multi-channel promotion.

4. Chipotle Rewards
Chipotle’s cross-platform loyalty program gives its users 10 points on the dollar. When they earn enough points in-store, online or in-app, they enjoy free items. Their rewards program has helped their earnings and revenue beat expectations after doubling digital sales during the first quarter of 2019.

The entirely digital program was kept simple and was well-coordinated. The initiative was very easily accessible for the user to join, integrated with the sales system, ensured trust and transparency through simplicity and maintained engagement by rolling out date-dependent offers.

5. Subway MyWay Rewards
Similar to the other examples in this list, Subway’s rewards system is centered around their app and personalized user accounts. Besides offering freebies to reward purchasing milestones, the program keeps users engaged by handing out surprise extras and birthday gifts.

The positive results of this program are due to Subway using irregular conditioning patterns to reward their clients called “random rewards,” gathering user-end data and recommending rewards based on buyer behavior and growing audiences with a user acquisition strategy similar to that in mobile gaming.

As the digital environment quickly grows, food and beverage businesses are integrating new strategies that increase customer loyalty and encourage repeat purchases.

Digital Silk is a team of experts dedicated to helping brands capitalize on the latest trends in digital marketing such as content marketing, social media marketing, PPC and more.

About Digital Silk: Digital Silk is a creative digital agency focused on growing brands online. From custom websites to digital marketing, Digital Silk creates SUPERIOR digital experiences to drive higher conversions, greater brand engagement & measurable results.

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Immy Ransom
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