Why Over-Segmentation Could Be Killing Your Marketing Efforts: Insights from Olga Lopategui

Why Over-Segmentation Could Be Killing Your Marketing Efforts: Insights from Olga Lopategui ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ [Facebook]( [Instagram]( [Youtube]( [Linkedin]( October 31, 2024 Why Over-Segmentation Could Be Killing Your Marketing Efforts: Insights from Olga Lopategui Join Olga Lopategui, Founder of Restaurant Loyalty Specialists, who reveals key insights on restaurant loyalty programs. She highlights that loyalty programs work best when engagement reaches 15-25% of transactions and emphasizes the importance of driving first-party orders rather than relying on costly third-party platforms. Olga also shares that loyalty members should ideally spend more than non-members, warning that over-discounting can lower loyalty guest spend. Perfect for restaurant operators looking to turn casual visitors into loyal customers, this episode breaks down practical steps for improving customer loyalty and building a stronger brand.  Welcome to the 'WISKING IT ALL' Podcast – the series where we engage with hospitality professionals and trailblazers who've wagered it all in their pursuits. Join us in exploring their journeys, understanding their motivations, and uncovering the secrets behind their success. Every week, we'll deliver two impactful ideas and one essential insight from our podcast episode, offering perspectives that could fundamentally transform your hospitality business. If you find value in our show, please consider subscribing and leaving a rating on [Spotify](. Your support is vital in helping us grow. Curious about the challenges and lessons I learned while building WISK? Sign up [here]( and join me as I reveal exclusive insights and effective strategies from our successful journey. Your Host, Angelo Esposito THIS WEEK’S EPISODE Meet [Olga Lopategui](. Olga Lopategui, Founder of Restaurant Loyalty Specialists (RLS), brings over 15 years of experience with major brands like Pizza Hut, KFC, and TGI Fridays to help restaurants build and enhance customer loyalty. With a Harvard MBA and a strategic, data-driven approach, Olga focuses on creating personalized, segmented loyalty programs that use insights from customer behavior to boost engagement and sales. Her team at RLS specializes in loyalty platforms like Punchh and Paytronix, offering services from program diagnostics to campaign execution. Olga’s approach emphasizes the importance of regularly revisiting loyalty strategies to adapt to changing customer needs and technology, ensuring brands stay competitive and connected with their guests. In this episode, Olga Lopategui, the Founder of Restaurant Loyalty Specialists, join us. Olga shares her expert insights on managing vast amounts of data in the restaurant industry, the growing role of AI in marketing, and the do’s and don’ts of loyalty programs. We'll explore strategies for both small venues and large chains, and discuss how to effectively convert third-party customers to loyal first-party fans. Plus, Olga's unique journey from the oil and gas sector to the culinary world and her global food experiences make this episode a must-listen.  5 Keys You'll Learn in this Episode: - Discover how large restaurants handle mountains of data and the common pitfalls to avoid in leveraging that goldmine for marketing success. - Olga sheds light on why focusing on product propensity and RFM (recency, frequency, monetary) analysis is crucial for efficient marketing and why over-segmentation is a recipe for disaster. - Get the lowdown on how generative AI is revolutionizing data segmentation and creative strategies, making your marketing efforts smarter and more engaging! - Learn why pushing first-party ordering and loyalty programs on all your packaging can convert occasional diners into loyal fans—and why third-party guests shouldn’t earn loyalty points. - Running a single venue? Fear not! Olga offers steadfast advice on cost-effective strategies for maintaining an email marketing database and utilizing built-in loyalty tools.  [Watch the full episode]( 2 IDEAS FROM THE PODCAST Idea #1 Strategic Use of Customer Data for Effective Marketing Restaurants collect large amounts of customer data but often struggle to use it effectively. Olga emphasizes focusing on specific, actionable metrics like spending patterns and preferences over general demographic data for impactful marketing. Action Items: - Prioritize Key Metrics: Focus on Recency, Frequency, and Monetary (RFM) metrics to understand customer engagement and spending habits. - Segment by Product Preferences: Target customers based on their purchase history to increase engagement with relevant offers. - Avoid Excessive Segmentation: Over-segmentation can reduce marketing effectiveness. Instead, use broader segments tied to meaningful behaviors. - Leverage Data for Seasonal Campaigns: Use customer preferences to create timely promotions tied to high-traffic periods or seasonal items. - Regularly Review Campaign Effectiveness: Conduct post-campaign analysis to learn which customer segments responded best and refine future outreach. Idea #2 Leveraging AI and Generative Tools for Enhanced Customer Engagement AI and generative technologies are evolving to support better customer segmentation and personalized marketing. Olga believes these tools will soon enable restaurants to execute sophisticated campaigns at scale.  Action Items: - Integrate Generative AI for Personalized Content: Use generative AI to create targeted content for different customer segments. - Automate Campaigns Based on Customer Behavior: Implement AI-driven automation to run campaigns aligned with customer purchase trends and behaviors. - Utilize Predictive Analytics for Segmentation: Predictive AI can help identify high-value customer segments, allowing for more strategic resource allocation. - Invest in Real-Time Analytics: Use real-time data analytics to adjust campaigns quickly, ensuring relevance and maximizing response rates. - Stay Updated on AI Advancements: Continuously explore new AI tools and capabilities that streamline segmentation, analysis, and customer engagement. [Listen on Spotify]( [Listen on Apple Podcast]( 1 KEY LEARNING ❝ Loyalty programs can help, but loyalty programs are not the center of the restaurant activity. What we do is incremental, so it can help you shift your sales by a couple percent here and there, but it's not going to change the trajectory of your business altogether [❞]( Olga's reflection on loyalty programs highlights a grounded perspective: while loyalty initiatives can indeed help boost sales and enhance customer retention, they are not a silver bullet for growth. She emphasizes that these programs offer incremental benefits—a slight sales increase or more frequent visits from regular customers—but they cannot redefine a restaurant's success on their own. Instead, Olga believes that true growth lies in the fundamentals: quality food, memorable atmosphere, and excellent service, with loyalty programs serving to complement rather than drive the core business strategy. [Listen & Subscribe]( P.S. Love our podcast? Share your feedback and recommend our podcast to other restaurateurs who might appreciate a sprinkle of our episodes! #WiskingItAllPodcast [Facebook]( [Instagram]( [Youtube]( [Linkedin]( [TikTok]( Sent to: {EMAIL} [Unsubscribe]( © 2024 Wisking It All... by WISK.ai WISK.ai, 488 Wellington St W , Suite 304, , Toronto, ON M5V 1E3, Canada