Hard Rock Finds More Ways To Keep Customers Happy - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Hard Rock Finds More Ways To Keep Customers Happy

Marketing and customer-service software from E.piphany improve customer loyalty.

In November 2000, diners and shoppers at the Hard Rock Cafe's restaurants or rock 'n' roll memorabilia centers were no more than passing customers to the marketers overseeing the restaurant chain. The 30-year-old Orlando, Fla., chain didn't know its customers, how often they visited the company's restaurants--43 in the United States, Canada, and the Caribbean and 12 in Europe--or what they bought from the stores. But by January, Hard Rock was running marketing and customer-service software that had transformed those visitors into loyal, understood customers.

Today, Hard Rock has regular contact with its 5,500 most loyal customers, called Pin Collectors, while acquiring and building relationships with less frequent visitors, called All Access Members. All were recruited from restaurant promotions or online. Hard Rock uses E.piphany Inc. marketing and customer-service applications to analyze and understand the behavior of members, based on membership cards used in restaurants, in stores, or online.

Incentives range from preferred seating to discounts. All Access Members, for example, receive a $20 credit on their loyalty cards each time they spend $200; Pin Collectors get a 10% discount. Hard Rock delivers targeted E-mail promotions for use online and in the stores. From one E-mail campaign that cost $1,500 to run, Hard Rock sold $150,000 in merchandise. "Before, we never did this type of campaign, so we went from nothing to something big," says Todd Lindsey, senior VP of finance and IT.

The restaurant company also leverages customer visits. As diners leave, they're handed customer-satisfaction surveys that can be completed online. "In the past, once the guest left the restaurant with a bad experience, they were gone," Lindsey says. Guests filling out the form receive coupons for another meal, giving Hard Rock another chance to impress them.

Hard Rock had a nine-month payback on the software. But as the company learns more ways to use it, execs expect revenue and customer loyalty to continue to improve. "We're still in customer-acquisition mode," says Kelly Maddern, senior director of IT and online, "and looking at different ways to acquire customer information."

Generally, pricing for the marketing and customer-service applications starts at $250,000 each, depending on the scope of the project.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

How SolarWinds Changed Cybersecurity Leadership's Priorities
Jessica Davis, Senior Editor, Enterprise Apps,  5/26/2021
How CIOs Can Advance Company Sustainability Goals
Lisa Morgan, Freelance Writer,  5/26/2021
IT Skills: Top 10 Programming Languages for 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/21/2021
Register for InformationWeek Newsletters
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll