News

Ice cream concepts' mobile loyalty program grows sales by 50 percent

May 16, 2013

A mobile and social-based loyalty pilot program conducted by Marble Slab Creamery and MaggieMoo's Ice Cream and Treatery has increased average transactions by more than 50 percent. The solution was implemented by MercuryLoyalty and integrated through the point-of-sale offered by Mercury Payment Systems.

Based on the success of the pilot program, the ice cream franchises' parent company, Global Franchise Group, is recommending MercuryLoyalty implementation at all five of its concepts: Great American Cookies, Marble Slab Creamery, MaggieMoo's, Pretzelmaker and Pretzel Time.

Marble Slab and MaggieMoo's implemented MercuryLoyalty to contend with growth challenges in the ice cream and frozen dessert industry. Sales in the industry have remained flat at $25 billion annually for the past five years while competition has intensified, according to the National Dairy Board.

"We are seeing a lot more head-to-head competition with fast food giants," said Allison Lauenstein, brand director for Marble Slab Creamery and MaggieMoo's Ice Cream & Treatery. "Mobile marketing is a fast way to drive impulse buys like ice cream. The results from this pilot show that we are able to increase market share and drive customers back into our store by integrating mobile and social marketing programs into our existing point of sale."

MercuryLoyalty is a POS integrated mobile and social based loyalty solution from Mercury. The marketing tool makes it easier for merchants to run targeted campaigns by sending promotional offers and coupons to select customers via SMS text, email and social media.

Through the MercuryLoyalty program, customers visiting the ice cream stores could sign up at the cash register for special offers to be sent via text messages by providing their phone number at the cash register. The customers can share the offers, such as a 30-cents-a-scoop campaign, with their friends via Facebook and Twitter.

Results from the pilot

Within five months, more than 32,000 customers at 16 Marble Slab and MaggieMoo's locations in five states signed up to receive special deals. Additionally, MercuryLoyalty was able to capture customer feedback about the promotion that now influences day-to-day operations and informs future campaigns.

The following stores reported increases in sales and transactions since the implementation of the pilot:

Medium-volume store in Jackson, Tenn.

• 454 percent increase in transactions
• 27 percent increase in net sales

Low-volume strip center store in Hendersonville, Tenn.

• 678 percent increase in transactions
• 108 percent increase in net sales

"There is no question in my mind that the text message we sent out related to this promotion in large part drove our business," said Clayton Arrington, owner of three franchise stores.

Read more about mobile initiatives.