1. The initial situation and the problem
Dominik Neiss is franchisee and CEO of 7 McDonald’s restaurants in Erfurt. On average each McDonald’s restaurant in Erfurt is visited by approximately 1500 customers daily. The customers arrive, order, pay, eat and leave the restaurant again. To the restaurant and its team, however, they remain unknown, anonymous and unreachable.
2. What was the goal?
Dominik Neiss explains, "We wanted to organize a prize draw for the Erfurt area, in addition to national marketing, in order to generate more visits in our restaurants and attract new customers. Our prize draw was to produce thousands of winners and motivate, especially, the young target group, but also families and company employees, to get engaged in our brand and products and to pay us a visit. However, we did not want to be a "big spender”, but instead develop something sustainable. For example, it was important for us to be able to reach the participants even after the prize draw to advertise relevant offers, promote local campaigns and to better link our customers with us".
3. What were the requirements and challenges?
To hold and organize a prize draw with thousands of participants and winners is a daunting challenge. The team of McDonald's Erfurt posed a lot of questions:
- Marketing, implementation, awarding and distribution of prizes are very labor-intensive processes. How do we manage to keep this within reasonable limits, or largely automated?
- Traditional contests with participation forms and long waiting times until the winners are informed are too complicated and do not reach broad masses. Customer surveys and studies at McDonald’s showed that customers only participate in lotteries if they are simple, if they see immediately if and what they have won and if it is possible to participate several times. How can this be accomplished?
- How do we get people outside of the restaurants to participate and to redeem their prize as quickly as possible in the restaurant?
- How should prizes be offered in order to elicit additional sales at the restaurant?
- How do we promote the prize draw and create as many opportunities for quick participation as possible? What role can our existing advertising, products, sponsorship commitments and cooperation play? How can we engage our fans on Facebook and websites? How can we inform the customer while he stands at the register or visits the restaurant?
- How do we manage to not only create an unique effect, but also to build a long-term relationship with each participant and winner and get the ability to inform them directly and personally of future campaigns?
4. Why did McDonald’s Erfurt decide on MyFavorito?
To meet these requirements good marketing know-how along with a powerful technological foundation is needed. McDonald’s Erfurt decided on MyFavorito, since MyFavorito has a finished product which has not only been able to solve most of the requirements but also combines and provides important enabling technologies:
- Mobile Apps (to connect, interact and self-service with the end client)
- Social Networking (for viral distribution and networking)
- Business process know-how (for connecting branch offices and administration of the platform)
- Cloud Computing (for a scalable, highly available, and safe operation)
- BigData (for real-time analysis of the resulting massive data)
Another important deciding factor was that MyFavorito is a software manufacturer that continuously develops their product through input from many clients and constantly adapts to new market conditions. Moreover MyFavorito and its partners help customers to use the product successfully.
5. What is MyFavorito?
MyFavorito is an innovative one-to-one marketing platform and customer relationship management (CRM) software. MyFavorito is mainly used by companies that have thousands of customers, but that do not know them and can not reach them directly and personally.
This includes for example retailers, store owners, restaurant owners, brands, manufacturers, chain stores, shopping malls, publishers. The main component is the mobile app "MyFavorito" (Android and iOS). End users can connect with each company by adding it it to their "favorites". This creates a direct and personal customer relationship between customers and business. Through various ready-built and mass market tested so-called "Commitment Tools and Strategies" each end user maintains his own profile and becomes known to the company and accessible to instant push messages. Important tools to activate and "mobilize" a large number of customers include: welcome gifts, mobile coupons, a loyalty system, a recommendation system or the prize draw platform "MyFavorito scan + win".
6. How does "MyFavorito scan+win" work?
Lotteries are a central part of MyFavorito because they are a powerful means to quickly establish a large number of end-user relationships and to keep these active. The operating principle of scan + win is very simple:
- The operator fills a virtual prize pot full with prizes, for example:
- "100 x 1 ice cream"
- "50 x 1 small beverage"
- "100 x coupon 10% off on your next order"
- Furthermore, prizes can be added to the pot that will generate a later visit, for example "1000 x 1 loyalty point" or "50 x 10 loyalty points".
- For each win, a place to redeem it (for example a restaurant) is set along with a validity period (e.g. 48h).
- Next, the operator defines the odds, for example, one in seven participants wins.
- The participants can partake by simply scanning a QR code with the MyFavorito app.
- The draw takes place automatically and the participants learn immediately on their smartphone if and what they have won, as well as where they can pick up their prize.
- A prize must be redeemed within the specified time, otherwise it expires. The distribution of prizes is tamper-proof, achieved by presenting the smartphone/winner´s notification at the specified place.
- No matter whether there was a win, or not: The following day the participant can try his luck again by re-scanning the QR code.
- Each restaurant will be added automatically to the participant’s favorites following the first scan or redemption of a prize.
7. How did McDonald’s Erfurt advertise the prize draw?
The prize draw has mostly spread virally and uses pre-existing marketing channels. Thanks to the simple participation via QR code it could be advertised on a variety of promotion materials, product packaging, flyers, posters and many others. In addition to hundreds of small instant wins some prizes with "talk-of-the-town" potential and target group affinity were raffled off, for example a trip to London, free tickets to the zoo or local football club or a Ferrari weekend.
Many families have attached the scan + win QR code to their refrigerator and participate first thing in the morning. Companies and their employees are scanning right before lunch. The QR code has been placed at sponsor events, in advertising, at events and many other advertising media. Through the generated client relationships and prize draw participation, the success of each action has become much more measurable.
8. What results have been achieved concretely?
Now, after 6 months some impressive results can be reported:
- More than 19,000 customers have participated in the prize draw. These customers can now be reached directly via push messages and their preferences are known.
- These customers participated in the prize draw more than 150,000 times.
- 80,800 prizes were distributed automatically to the participants
- More than 40,500 prizes have been redeemed in the restaurants.
- Valuable quotas emerged as a result of information gathered on prizes were most popular.
- Many prizes were deliberately designed to elicit an additional sale or even an upgrade to a menu.
- During this time frame standard mobile coupons were also redeemed via MyFavorito and regular loyalty points were collected and converted into loyalty bonuses.
The prize draw runs permanently and is now well-established in the daily restaurant routines. Many customers scan daily, engage with the brand and the restaurants every day and tell others about their wins. Scanning the QR codes and redeeming mobile prizes in the restaurant are a highly-visible process that often generate prying eyes and imitators. "We are very pleased with the current results and can now take the next steps in light of the experience gained and the prolific customer feedback," says Dominik Neiss.
10. The next steps
The next stage is already in full swing. A first MyFavorito cooperation with the local football club, FC Rot-Weiß Erfurt (3rd League) and the restaurants has been decided upon. It is attempting to share the different visitor flows by using a collective scan + win prize draw, that is, a shared prize draw that both partners manage alongside voucher promotions. Football fans visit their preferred McDonald's restaurant before or after a match of their favorite team and burger-lovers visit the stadium. We will inform you about the results personally or in a future Success Story.
If you have similar challenges or want to achieve similar goals, we would be very happy if you contact us. For further questions please do not hesitate to contact us:
For McDonald’s Erfurt
Dominik Neiss, CEO and McDonald's Franchisee
Tel.: +49 361 644 155 6
Dirk Schlenzig, CEO
Tel: +49 361 666 15810