Paytronix: Loyalty Members' Checks in 2020 Were 6% More Than Non-Members

NEWTON, Mass. — During an unprecedented 2020, loyalty programs helped the restaurant and convenience store industries reach customers.

According to the inaugural Paytronix Loyalty Report, most Paytronix loyalty programs consistently boosted visits and spend by 18 percent to 30 percent per enrolled member. Additionally, loyalty members' checks were, on average, 6 percent more than non-loyalty members over the course of the year.

Other key insights from the Paytronix Loyalty Report include: 

• The top 10 percent of loyalty members accounted for more than half of all loyalty spend at their favorite brands for eight months of 2020. 
• Ice cream and coffee brands had a banner year in 2020 despite the pandemic, realizing a 7 percent increase in visits and a 26.5 percent increase in spend, on average. 
• Convenience stores saw a 10 percent increase in average spend per visit despite a decline in fuel sales. 
• Spend per visit increased across convenience stores and all restaurant segments. 

"During a tumultuous 2020, loyalty programs shone through as one of the key survival tools for brands in the restaurant and convenience industries," said Andrew Robbins, CEO of Paytronix Systems Inc. "The best programs are those that look beyond simply enticing customers with offers and leans into the idea of personalizing the customer journey. In this way a loyalty platform is part of a broader guest engagement strategy that touches all parts of the guest experience, whether that's digital, physical, or a combination of both."

The Paytronix report finds that "critical mass" for a loyalty program is reached at about 15 percent penetration, the baseline that brands should strive to achieve one year after launching a program for the first time. At this level, the program is producing material results that are enough to make a noticeable difference on the top line. 

The Paytronix Loyalty Report examines restaurant and convenience industry trends across the loyalty landscape, including trends in visits, spend, member demographics, and program types. It references data from the Paytronix database of in-store and online transactions between Jan. 1, 2018 and Dec. 31, 2020. While restaurant data in this report goes back to 2018, the convenience store data covers 2019 and 2020. 

The full report is available here.

Newton-based Paytronix is a provider of SaaS customer experience management solutions for restaurants and convenience stores. It empowers more than 500 brands across 30,000 locations.