Chanticleer Holdings Inc. is harnessing the same technology used to develop cryptocurrencies like Bitcoin to create a loyalty program for its three burger chains.
The Charlotte, N.C.-based operator has partnered with Mobivity Holdings Corp. to create loyalty points that can be used at 12-unit Little Big Burger, 20-unit BGR and nine-unit American Burger Co. The loyalty program uses blockchain technology that allows points to be transferred securely between customers, franchisees, suppliers and other parties.
Perhaps more importantly, Chanticleer is using Mobivity’s own system of granular data collection to gain a better understanding of customer buying habits.
“We wanted to get out in front and do something really creative between the brands,” Chanticleer CEO Mike Pruitt said. “In reaching out to Mobivity about a generic-type [loyalty] program, one of the things they brought up to me over the last six weeks was what they had been working on with this cryptocurrency.”
The cryptocurrency, Mobivity Merit, aims to allow greater flexibility in how loyalty points are issued and redeemed.
For example, if a beverage supplier wants to issue loyalty points for purchases of its drinks at Chanticleer restaurants, it can invest however much of its marketing budget it wants in Mobivity Merit units, which they can then give to customers who buy their drinks at those restaurants, Mobivity chief technology officer Alek Zdziarski explained. Customers could then redeem the Mobivity Merit units for any menu items at the three chains.
Mobivity’s expertise is in collecting and analyzing purchasing data. David Galante, the company’s senior vice president of product management, said Mobivity would collect the purchasing data of Chanticleer customers, recording which combinations of food they bought. Data would reveal if customers were more likely to buy tater tots with BGR’s Southwestern Burger, or iced tea with the California Turkey sandwich, for instance.
Pruitt said such data appealed to Chanticleer beverage supplier Coca-Cola.
“They are willing to throw marketing dollars into things like this,” he said.
“Coke is very excited about capturing data,” Pruitt added. “We’re now testing two of their natural soda products [Blue Sky Blood Orange and Black Cherry], and they really want to see the data.”
Knowing which customers buy them, when and in which combinations will provide a better understanding of how to position the beverages, he said.
Using a cryptocurrency would also help establish the restaurants’ cachet among younger customers, Pruitt added.
“Especially in the case of Little Big Burger, there’s definitely a cool factor as it relates to our customer base,” he said. “They’re very driven on social media — talking about it, taking pictures of the food and posting it.”
Although the partnership with Mobivity was just announced this week, “the early indications are that people definitely are intrigued by it,” Pruitt said.
Contact Bret Thorn at [email protected]
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