Consumers walking into the Dairy Queen in Rochester, Indiana, have been offered something beyond ice creams and hamburgers: A pile of RFID tags that can be activated and affixed to their wallet, watchband or mobile device. The technology can track customers’ purchases and make customized coupon recommendations when they enter the store.
“Our goal is to get a better understanding of customer behavior, and build customer loyalty based on that information” said Jamie Guse, International Dairy Queen Manager. This identification system will provide the retailer with detailed visibility into a customer’s purchase history and coupon redemption rates. Dairy Queen will analyze this information to send targeted marketing and promotional offers via mobile coupons redeemable in-store. The ice-cream merchant will measure the performance of their campaigns via real-time validation and reporting.
Other retailers that are also leveraging analytics to dial into the mobile coupon space include Burger King, Victoria’s Secret and Unilever (through ShopRite). The program is intended to deliver the benefit of a mobile system without the hardware and software integration challenges of having to deal with multiple phone manufacturers and competing carriers.
A total of 900 people have joined the loyalty program since its inception 20 months ago. The RFID tag test, expected to run through the end of the year, is already making a measurable impact to year-over-year traffic and revenue. Eventually, Dairy Queen intends to expand the test and later take the program national.
International Dairy Queen (IDQ), headquartered in Minneapolis, MN, develops licenses and services a system of over 5,600 stores in the United States, Canada and foreign countries. The quick service restaurant offers dairy desserts, hamburgers, hot dogs and beverages. The 69-year-old $2.6B dessert merchant is a wholly-owned subsidiary of Berkshire-Hathaway, Inc.
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