Dutch Bros aims to leverage stored-value payments

While Dutch Bros. Seeking to convert regular customers into super fans, the company is leveraging stored value features to remove friction from the experience.

The Grant Pass, Oregon-based drive-thru chain of cafes, which has more than 500 locations in 13 states, is focused on adopting this payment method, company executives told analysts during a briefing. a call on Tuesday March 1 to discuss the brand. fourth quarter 2021 results.

“At the end of the year, our digital offering was over 60%,” Dutch Bros. President and CEO Joth Ricci said on the call. “We are pleased with the adoption and use of Dutch Rewards by our customers, especially as users begin to use the stored value features of the platform. As more customers load funds into their accounts, we believe this can reduce transaction times, speed up our lines, and free up time to create meaningful, lasting connections.

Somewhere between one in four and one in five of purchases from members of the chain’s rewards program “include stored value activity,” noted CFO Charlie Jemley, and the company is looking to leverage its system of points to entice consumers to add value to their accounts.

“We…believe that stored value is a great idea not only operationally, but simply for creating attachment, engagement and loyalty, and we’re really in the infancy of getting customers to load money on their program,” Jemley said on the call.

Results from PYMNTS’ Restaurant Friction Index (RFI), created in conjunction with Paytronix, which is based on a survey of more than 500 full-service and quick-service restaurant managers in the United States, revealed that in September, 38% of restaurant managers consider payment options to be “very” or “extremely” important to their innovation strategies, and a similar share said the same about loyalty offers.

Read more: New data shows digital loyalty programs are a key differentiator for top-performing restaurants

Additionally, the Index’s survey of a balanced panel of over 2,100 US consumers found that 43% of customers would be more likely to buy from restaurants that offer loyalty rewards, 25% would also be enticed by the possibility to pay with a card. on file and 23% by the possibility of paying with digital wallets.

Ricci said Dutch Bros. has “conducted hundreds of tests over the course of 2022” regarding the effectiveness of initiatives to encourage consumers to load with value and more broadly the effectiveness of digital initiatives to drive spending with a greater focus on increasing visitation. frequency of mid-tier customers.

These moves are facilitated by knowledge of consumer habits and desires gained through the company’s rewards program. At the end of 2021, the Dutch Rewards program, which launched in February 2021, had 3.2 million registered members, which represents approximately 6,000 members per location, Ricci said.

“Through the app we… have the ability to remember every interaction with all of our Dutch Rewards members,” he said. “We can leverage this insight to generate personalized offers and thoughtful messaging to personalize the Dutch Bros experience. of our members. We are only at the beginning of this work and we are excited to continue to create value for our customers and our brand. »

——————————

NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICE IN THE DIGITAL ENVIRONMENT

On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.