Many restaurants face challenges when it comes to evaluating staff and encouraging them to sell more effectively. Client X needed to solve these issues, and they turned to Marketing Vitals to provide the solution. As you will see, Marketing Vitals’ software and the IncentivizeMe! app provided Client X with solutions to problems that they couldn’t solve on their own.
The problem for Client X was twofold. The first issue was a struggle with actual traffic counts. A ~40% of their business takes place at the bar, and team members often failed to properly enter traffic counts at the POS – whether intentional or not was hard to establish. With fewer entrées purchased in the bar, guest counts were difficult to determine. And in turn, that made it much more difficult to know what each team member’s individual PPA was.
This led to the second problem. Namely, how could Client X measure and reward correct behavior when the only metric with which to do so could be easily manipulated at the POS? The issue was that some team members would not enter a guest count in the POS, making it seem as though their PPA was higher than it was.
And because of that, managers could not count on those figures to judge each team member’s effectiveness. This led managers towards a highly subjective form of review—in some cases reviews were simply based on a team member’s personality, not their ability to drive sales. This type of subjective measurement of team members was detrimental to morale. It increased the feeling that favoritism is at play when shift allocation or section selection was being made.
Client X needed to better understand their true guest counts. They also needed a quantitative way to measure team members’ performance. Attempts to do this on their own by calculating additional metrics was time consuming and difficult to communicate from corporate down to the team members. So they turned to Marketing Vitals’ software to solve those issues.
Client X began using Marketing Vitals’ IncentivizeMe! app in November 2015. The app is tied to Marketing Vitals’ analytics software, allowing Client X to create unlimited metrics around team performance. If they wanted to know about their team members’ role in upselling or creating repeat customers, they could finally get real answers.
The IncentivizeMe! app also allows Client X to communicate directly with their team members and show them their individual performance statistics privately. There was now a way to show both team members and managers valuable performance related data on a daily basis.
Client X found that Marketing Vitals analytics software gave them an accurate guest count and helped them understand their true traffic patterns. To test Marketing Vitals accuracy, they even chose certain days to send in people to physically count customers. The differences between Marketing Vitals’ software and the client’s manual count were negligible.
With an accurate count in place, team members could no longer manipulate the guest count denominator in the PPA equation. The counts were now based on machine learning and analytics rather than manual entry.
This created a new environment where team members actually had to know the menu and sell more to increase their PPA. With the ability to manipulate the equation gone, sales and team member PPA went up – and a few low performers soon left. The IncentivizeMe! app shows team members how to potentially improve their PPA and the monetary benefit they will see if they took the recommended actions.
This in turn helped solve the secondary problem that Client X had with managerial review of team members. Once it was possible to accurately measure PPA and team members’ effectiveness, managers no longer had to rely on subjective measures when it came to reviewing their team members.
Client X decided to ask their managers to list their best employees, and then showed them the results of Marketing Vitals’ performance analytics. In most cases, managers were shocked by the discrepancies between their “best” team members and which team members actually generated the best business results.
Client X was finally able to lessen the human interpretation of “best” when it came to team members, and instead rely on hard data to create rankings. As we’ll see, this had positive effects on team member retention and morale.
● PPA increased 2.0% since the beginning of their fiscal year. In the market used as the original test group, PPA is up 3.8%.
● Team member retention is also up. Annual turnover in September 2016 was 203.9%. Annual turnover as of March 2017 is 183.3%.
● Client X has seen +1.27% in sales YTD through 6/11/2017.
● Customer Satisfaction scores have improved 4.0% from 83.1% YTD 2016 to 87.1% in 2017.
The PPA increases for Client X are driving both sales for the stores and tips for team members. As the software becomes a normal part of business Client X expects these trends to continue into the future.
Team members now have a better understanding of the menu, leading to an overall increase in sales. Team members are now better able to understand how to drive guests to buy more, and which items can help achieve this. Growth has remained consistent despite slow industry sales, something Client X attributes to their team members’ level of service and menu knowledge.
Two key metrics have also experienced changes—frequency and turnover. Customer frequency has increased as customer satisfaction increased. This in turn has alleviated the need for an expensive loyalty program—their customers are coming back without one.
Turnover is also down. This is likely due to the decrease in human interpretation of performance for both managers and team members, as well as the work of the IncentivizeMe! app.
These factors have also affected morale. Less subjectivity in evaluating team members means that shift allocation and section selection are based on quantitative results. Team members know that they can control their own destiny when it comes to shifts and sections—the numbers don’t lie.
In conclusion, Client X has seen marked improvement in all these areas due to the implementation of Marketing Vitals’ software and the IncentivizeMe! app.