Check ins by the number

Drive-Thru Check-Ins: Comparing McDonald’s and Burger King

By Adam on March 28, 2011 — Comments (0)

Quick-service restaurants are one of the most popular types of venues for check-ins.  When it comes to quick-service restaurants, McDonald’s and Burger King are two of the most popular “fast food” chains in the world.

McDonald’s has more than 32,000 locations worldwide and does $24 billion in yearly revenue. (Easily the most of any brand we’ve examined on this blog.)  Burger King claims to have 12,200 locations and does about $2.5 billion in yearly revenue.

How does each brand compare when it comes to generating check-ins?  Let’s find out.

Total Check-Ins: The number of check-ins that each brand has received across all its venues.

McDonald’s: 1,008,493

Burger King: 579, 279

While McDonald’s has nearly 2x as many check-ins as Burger King, with nearly 3x more venues, this gap doesn’t appear as good as it could be.  Additionally, with 10x as much revenue, one would think that McDonald’s would have a much bigger lead on Burger King.  Let’s look at other factors leading to these check-in totals.

Total People: The total number of people that have checked-in.  Unique people will be fewer than total check-ins, as people may check-in more than once at a location.

McDonald’s: 529,141

Burger King: 367,721

Again, McDonald’s has a lead on total number of people that have checked-in, but it appears that Burger King may actually have more people per venue that check-in.

Looking at check-ins per user will provide some context around just how loyal these brands customers are.  (Higher is better.)

McDonald’s: 1.9

Burger King: 1.57

Based on check-ins per user, McDonald’s customers appear to be slightly more loyal than Burger King’s customers.  (Customer Overlap data also supports this.)  While Burger King may have more people per venue that check-in, McDonald’s customers appear to visit and check-in more often.

Customer Overlap

Using detailed check-in analysis, we can also compare each brand’s customer and determine the overlap in their customer bases.

McDonald’s: 11.8%

Burger King: 25.9%

Both of these numbers are large.  We typically only see customers overlap in the single digits. However, these numbers tell us a lot about each brand.  Primarily, the fact that nearly 26 percent of Burger King’s customers also check-in at McDonald’s indicates that Burger King’s customers are less loyal to Burger King and are willing to try other restaurants.  This also supports the idea that McDonald’s customers are more loyal.

Finally, let’s take a look at average Social Influence, which is an indicator of how influential a brand’s customers are in the social web.  (Max score is 10.)

McDonald’s: 1.7

Burger King: 1.7

1.7 is typically the average social influence we see.  It’s no surprise that with such large customer bases, both brands attract a “typical” customer in terms of social influence.  More niche brands like In-N-Out Burger are much more likely to attract a more influential customer base.

Closing Thoughts
While it appears that McDonald’s dwarfs Burger King in terms of absolute numbers, it does look like Burger King is doing a good job at getting its customers to check-in.  McDonald’s has an opportunity to extend its reputation as a digitally-savvy brand by encouraging more of its guests to check-in.  However, it appears that neither brand has become the preferred fast-food establishment for check-in programs, and both fast-food chains have an opportunity to become more closely associated with this growing audience.

 

Increasing the Average Coupon Redemption Rate

By Adam on March 16, 2011 — Comments (0)

Offers, deals and coupons are an inherent part of location-based marketing. One of the most common methods retailers and restaurants use to draw customers into their stores is to offer customers coupons for their visits.  The industry average for coupon redemptions is right around 1%.  Yes, that’s right.  Only 1% of coupons received by consumers are actually used and redeemed.

Why is this redemption rate so low?  Here’s the biggest reason

Lack of timeliness and context

Lack of timeliness and context occurs when I receive an offer when I’m not ready to redeem act upon it.  If I receive a coupon to save $5 on my next haircut, but I just had my hair trimmed, I’m likely to forget about the offer.  Timing, and context, are everything.

Retailers and brands can leverage location to eliminate this problem. That is, retailers can leverage location-based marketing to deliver the right offers to customers at the right time and place.

For example, if I opt-in to receive offers and deals from a a clothing retailer, I’m going to be much more likely to redeem an offer when I’m in a shopping mindset.  What type of location would signify that I’m in a shopping mindset? My checking into a mall would be a great signal that I’m shopping.  So would checking into a store like Target or another major retailer.

Brands and retailers that know when their customers are in the right mindset to buy their products are able to deliver the most effective offers at the right time.  When brands do this, coupon redemption rates can increase ten-fold, enabling marketers to increase their ROI on marketing spend and their overall revenue.

What else?  What other ways can retailers leverage location-based marketing to increase coupon redemption?

 

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About iisey

Entrepreneur Business to Consumer, Internet Search, Internet Web 2.0, Online Retail
This entry was posted in Consumer. Bookmark the permalink.

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