9. Importance of Loyalty Programs for Restaurant with Matt Doka
9. Importance of Loyalty Programs for Restaurant with Matt Doka
Jun 24, 2024
Summary
Matt Doka, co-founder and CTO of Fivestars, shares the story of how Fivestars started and the importance of loyalty programs for small businesses. He discusses the shift from just having a loyalty program to creating a comprehensive life cycle communication platform that turns transactions into relationships. Matt emphasizes the effectiveness of text and mobile push notifications compared to email and the importance of choosing the right partners in the industry. He also provides advice for small restaurant owners and encourages them to leverage their partners to grow their businesses.
Takeaways
- Loyalty programs are important for small businesses as they help turn transactions into relationships and increase revenue.
- A comprehensive life cycle communication platform that includes text and mobile push notifications is more effective than just having a loyalty program.
- Choosing the right partners, such as payment processors and marketing providers, is crucial for the success of a small business.
- Text and mobile push notifications have higher conversion rates compared to email.
- Small restaurant owners should ask questions and leverage their partners to get the most value out of their marketing efforts.
Podcast Episode
Audio Player
00:00 | 25:41
Restaurant Rocket Fuel
The Importance of Loyalty Programs for Restaurants | Matt Doka
Jun 24, 2024 Episode 9
Boostly
Matt Doka, co-founder and CTO of Five Stars, shares the story of how Five Stars started and the importance of loyalty programs for small businesses. He discusses the shift from just having a loyalty program to creating a comprehensive life cycle communication platform that turns transactions into relationships. Matt emphasizes the effectiveness of text and mobile push notifications compared to email and the importance of choosing the right partners in the industry. He also provides advice for small restaurant owners and encourages them to leverage their partners to grow their businesses.
Keywords
loyalty programs, small businesses, life cycle communication, text notifications, mobile push notifications, email marketing, customer engagement, partnerships
Takeaways
Chapters
00:00 - Introduction and Background of Five Stars
05:13 - Observing Problems with Small Businesses
08:34 - The Importance of Loyalty Programs and Life Cycle Communication
10:34 - The Effectiveness of Text and Mobile Push Notifications
13:25 - Testing and Learnings in Communication Strategies
21:30 - Advice for Small Restaurant Owners
Transcript
Shane Murphy (00:02.094)
Welcome back everybody. Today we are joined by Matt Doca, the co-founder and CTO of Fivestars, which is a loyalty program that has had over 30 million people get rewarded at over 12,000 local businesses. They've driven over $2 billion in transactions throughout their network...
Matt Doka (00:47.344)
Thanks Shane, happy to be here. Looking forward to the conversation.
Shane Murphy (00:51.246)
Can you tell us more about your background as well as the story of Fivestars and how it all got started?
Matt Doka (01:01.488)
Sure, so I grew up in a border town in El Paso, Texas, where both of my parents were doctors... and took in that example of how to use your careers to have an impact on people, I hated biology. Instead, I studied engineering and finance at Penn. My first job was at a hedge fund... I met my co-founder Victor Ho at McKinsey, and we decided we wanted to build technology that helps connect people and businesses.
... We're proud to help small businesses thrive and have grown into different markets including the UK, Honduras, Canada, and Puerto Rico.
Shane Murphy (05:13.486)
That's amazing. Were there any specific problems that prompted you to focus on loyalty programs?
Matt Doka (05:56.336)
Good question... Small business owners know their regulars, but they struggle to communicate effectively with them.
Shane Murphy (08:34.158)
Why is it important that restaurants have loyalty programs and what impact does it have on revenue?
Matt Doka (09:18)
Many loyalty programs are mediocre... we provide more value through automated communications rather than just tracking points. Doing both leads to much higher ROI and better customer engagement.
... The real value comes from the communication that can drive revenue rather than just offering points.
Shane Murphy (12:56.174)
You've been focused on the product side for Fivestars. How do you approach testing and identifying what works best for communication strategies?
Matt Doka (14:21.904)
We have two kinds of messages: flash sales and automated messaging based on customer journeys... The most volume in our network comes from push messages, but automation has the highest conversions.
Shane Murphy (18:52.72)
For a small restaurant owner just starting, do you have any closing advice?
Matt Doka (22:04.88)
Choose your partners carefully. Leverage them for insights and value, and don't hesitate to reach out for guidance.
... We're always excited to help small businesses grow.