Industry News - March 21st 2014
RETAIL AND TECHNOLOGY NEWS
75-Unit Burger Chain Serves up Loyalty with Mobile CRM Platform
Punchh, a brand-centric mobile CRM suite for brick and mortar businesses, will create a customized mobile and swipe-card based rewards program for the 75-unit Farmer Boys burger and breakfast chain. The Farmer Boys branded mobile app will allow customers to view menus, earn and redeem loyalty rewards, and refer their friends. The app will be available at select stores starting in Q2 of this year. Customers will also be able to use swipe cards to participate in the loyalty program.
With the Punchh loyalty program, Farmer Boys will be able to engage Millennials and baby boomers through their smartphones and swipe cards. Punchh’s cloud-based, POS-integrated platform will allow restaurant operators to engage loyalty members in real time, and provide customized offers to boost sales and repeat traffic.
The chain chose Punchh to better understand and reward its most loyal customers—many of whom have been coming to the chain for decades—while improving its ability to attract new patrons. It also recognized the platform’s higher potential for return on marketing investments.
For operators, the Punchh mobile CRM platform makes it easy to track customer purchases and, in real time, makes that data accessible to store and corporate staff through a web-based dashboard. Using the Punchh dashboard, operators can manage customer relationships, see customers’ purchasing history in real time, and tailor one-to-one offers.
Customers use a single mobile app to earn and redeem rewards, place an order, pay for their food, interact directly with brand operators, share reviews about brands with friends through social media, play games, or respond to surveys.
Casino Opts in for Intelligent Revenue Management
Mystic Lake Casino Hotel, in Prior Lake, Minn., will implement TribalREV®, Rainmaker’s comprehensive revenue management software solution provided as a managed service. The two entities finalized the agreement in mid-January and the solution will be implemented in the first quarter of 2014.
Billed as the largest casino resort destination in Minnesota, Mystic Lake offers 586 well-appointed guest rooms and suites, nearly 100 Blackjack tables, more than 4,000 of the most popular slots and a state-of-the-art high stakes bingo hall, a wide variety of restaurants and bars, an indoor pool, whirlpool and sauna, and a 2,100 seat venue (The Mystic Showroom) for world-class entertainment.
Today’s dynamic gaming environment, increased competition, and the lingering recession have forced operators to be smarter and operate more efficiently. Fortunately, the dramatic increases in data-storage and processing capabilities have allowed Rainmaker to undertake steadily more complex analysis for customers ranging from a 128-room hotel to a 5,000-room resort. The revenue increases typically come from small adjustments in room rates — moving nightly rates by $10 to $25 to make sure that rooms are priced to achieve the greatest value.
TribalREV leverages Rainmaker’s award-winning GuestREV® software, combined with a seasoned revenue management expert.
Men's Wearhouse Acquires Jos. A. Bank for $1.8B
Following six months of who-will-buy-who, Men's Wearhouse agrees to purchase Jos. A. Bank for $1.8 billion. The combining of the two retailers creates the fourth largest men's apparel retailer in the U.S.
The months-long jockeying on both sides started back in October 2013 when Jos. A. Banks made an unsolicited $2.4 billion bid for Men's Wearhouse. The offer was quickly rejected and an unsolicited offer from Men's Wearhouse to buy Jos. A. was made reciprocated to the tune of $1.5 billion.
Since October Men's Wearhouse has been in hot pursuit of its rival making several offers before the two sides finally agreed to the $65 per share purchase price. The two brands will continue to operate under their own banners although significant corporate restructuring is expected as redundancies are eliminated.
"We are pleased to have reached this agreement with Jos. A. Bank, which we believe will deliver substantial benefits to our respective shareholders, employees and customers," President and Chief Executive Officer of Men's Wearhouse Doug Ewert said. "The combined company will have the operational flexibility to successfully execute on strategic plans at both brands."
The acquisition is a windfall for Jos. A. Bank shareholders whose stock will be purchased by Men's Wearhouse at a significant premium. "Our Board has been rigorously focused on pursuing a path for our shareholders that maximizes value creation," Jos. A. Bank chairman Robert N. Wildrick said. "We have been committed to pursuing a range of strategic alternatives to achieve that goal. The transaction clearly reflects the success of our efforts, providing a substantial premium over any price at which our stock has ever traded, including a 56% premium since our interest in Men's Wearhouse became public last October."
The deal comes on the heels of Jos. A. Bank's announcement last month that it would acquire Eddie Bauer for $825 million. The Eddie Bauer deal has been axed due to the Men's Wearhouse acquisition, but the outdoor clothing retailer can now collect the $48 million termination fee it is due.
TSA Solutions Training Triples Rate of Room Upselling at Courtyard Marriott
Courtyard by Marriott Hong Kong Sha Tin has tripled its rate of successful guestroom upselling following the implementation of the TSA Solutions Front Desk Upselling program. The innovative program is based on a unique combination of skills training, technology and ongoing performance management tools that help hotels generate greater revenues and higher guest satisfaction scores.
TSA Solutions hotel partners typically report significant revenue gains beginning just weeks after partnering with TSA, in addition to measurable improvements to guest service levels. In the case of Courtyard by Marriott Hong Kong Sha Tin, successful premium rooms upselling rates jumped from 20% to 77% in the first month. "We did upselling on our own for about three months before TSA came in, and saw incremental room revenue more than double after our associates underwent the TSA training program," says General Manager Robert Chiang.
TSA Solutions' Front Desk Upselling program uses proven techniques to train hotel staff on how to explain the advantages and benefits of premium room types to guests. These upselling strategies focus on engaging guests in a way that is proven to enhance guest satisfaction scores by tuning into the customer's true needs. TSA Solutions' reporting and performance management platform completes the package, showing performance impact in key areas and exposing unrealized opportunities to optimize upsell performance.
"The skills our employees and supervisors learned from TSA's performance consultants - from forecasting during the preparation stage to identifying and matching guest needs during check-in - have been the reason we have been able to increase the sales of higher room categories as well as add-on features like breakfast packages," Chiang says. "Daily and monthly performance reports help us identify trends, giving us the ability to plan our actions moving forward. And follow-up visits by TSA consultants, combined with constant performance monitoring relative to other properties, drives the focus for our team to stay on course and deliver results."
TSA Solutions hotel partners typically post incremental RevPAR of 2-3% after implementation of the Front Desk Upselling solution. Generating more than $150 million in incremental rooms revenue in 2013 for its hotel partners, TSA provides a strong performance measurement platform that clearly illustrates the cost of the solution as a percentage of revenue produced, which simplifies total ROI. Using these measurement tools, TSA Solutions' hotel clients are able to conclusively demonstrate the internal business cases for upselling.
TSA Solutions partners with client hotels on a long-term basis to monitor results and ensure their success. TSA Solutions offers a unique combination of education, ongoing performance management and measurement platform that allows hotel partners to maximize revenues and drive incremental revenue, while delivering added value to hotel guests.
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