Resy • 2024
Enhancing Dining Discoveries: Adding a Loyalty Program to the Resy App
CONTEXT
Booking Dining Experiences
In the dining scene of major cities across the United States, where residents, friends, neighbors, colleagues, and tourists share a passion for exploring new restaurants, the Resy app plays a crucial role in discovering and booking dining experiences. Recognizing the potential for increased bookings and engagement within the app, an exploration into potential enhancements within the app has been initiated to ensure its features align with user expectations. The overarching goal is to elevate user experience and enhance the delight of discovering diverse dining options.
If Resy introduces a well-crafted loyalty program and personalized engagement strategies within the app, then users will be incentivized to become members, leading to enhanced engagement and increased user retention.
HYPOTHESIS
THE MARKET
What can we learn from competitors?
Resy's main competitors in the restaurant reservation and operations software sector are:
OpenTable
The most prominent restaurant reservation app in the US.
Has a reward program offering points with tiers which users can receive gift cards or apply to dining expenses.
Dorsia
A members-only platform that users pay to access hard-to-get reservations at popular restaurants in major cities.
SEVENROOMS
Offers booking reservations for restaurants, hotels, enterprises, and membership clubs, utilizing CRM data to enhance the dining experience.
InKind
App that gives bonuses to spend at restaurants
20% back when users dine at restaurants in the network.
Allset
Specializes in quick dine-in services on demand.
Users receive 15% back on every pick-up or dine-in at restaurant or cafe.
How about the market?
13%
The global reservation and booking software market is expected to grow at a CAGR of 13% by 2029, with North America holding the largest market share. (Source)
51%
As of March 2023, 51% of consumers use restaurant loyalty programs, up from 45% the previous year, with 49% at quick-service and 34% at sit-down restaurants. (Source)
Market Insights
Restaurant loyalty programs are evolving to offer more meaningful benefits focusing on exclusivity, status, and personalization.
(Source)
Major and smaller restaurant brands are increasingly adopting subscription and membership models to drive engagement and generate predictable revenue.
(Source)
Loyalty and subscription services are becoming essential in the restaurant industry for building customer relationships and differentiating in a competitive market.
(Source)
Resy appeals to tech-savvy Millennials and Gen Xers in urban areas, offering convenience in booking dining experiences for those with disposable income. It addresses their desire for quality dining and efficiency, catering to professionals and food enthusiasts who value personalized services and rewards.
Who uses Resy?
THE AUDIENCE
Age
Older Gen Z (ages 21 - 27)
Millennials (ages 28-40)
Younger Gen Xers (ages 41-45)
(Tech-savvy and accustomed to using apps for services, including dining.)
Income Level
Middle to high-income individuals who dine out frequently. This group has the disposable income to spend on dining experiences.
Pain Points
Challenges might include finding quality dining experiences, managing dining budgets, and finding reservations at popular restaurants.
Personas
Young Professionals who often dine out and socialize over meals.
Food Bloggers and Influencers, who are always on the lookout for new dining experiences to share with their audience.
Students in higher education, in urban areas, who are looking to socialize on a budget.
Lifestyle Factors
Individuals who lead a fast-paced lifestyle
Individuals who socialize frequently
Entrepreneurs who network
Business professionals dining out with clients
Location
Urban and suburban areas with a higher concentration of restaurants and a tech-friendly population.
Cities with a vibrant dining culture would be especially relevant.
Interests
Food enthusiasts who enjoy exploring new culinary experiences, tasting different cuisines, and socializing.
Motivations
Desire for personalized dining experiences, rewards for frequent dining, convenience in booking and managing reservations, and access to exclusive events or offers.
Job Type
Professionals in industries such as tech, finance, marketing, banking, and media that can afford a lifestyle with frequent dining out. These individuals often have busy schedules and appreciate the convenience and benefits offered by a loyalty program.
Digital Environment
Tech-savvy individuals who are comfortable using apps and online platforms for various services, including dining reservations, and are active on social media.
What are the pain points that these users need addressed?
USER INSIGHTS
Trouble Recalling Specific Restaurants They Want to Visit
Difficulty in tracking or remembering restaurants they plan to visit.
Absence of a feature to bookmark or save desired restaurants for future reference.
Users might miss out on dining experiences due to this forgetfulness.
Dissatisfaction with the App Experience
Users may find the app interface non-intuitive or lacking in features.
Negative experiences with app functionality or customer service.
Such dissatisfaction can lead to decreased app usage and loyalty.
Hesitation Due to Reservation Fee Concerns
Apprehension about potential fees associated with making reservations.
Uncertainty about the cost implications of using the app for reservations.
This concern might deter users from utilizing the app for booking.
Opting for Delivery or Cooking at Home Due to Perceived Hassle
Users may prefer ordering delivery or cooking at home to avoid the perceived hassle of making a reservation.
The convenience and comfort of home dining can outweigh the desire to dine out.
This choice is often driven by the wish to avoid potential reservation complications, fees, or the effort involved in planning a night out.
Difficulty Remembering to Use the App
Users might forget about the Resy app when planning to dine out.
The app may not be top-of-mind due to a lack of engaging features or reminders.
Users might resort to direct calls or other reservation platforms out of habit.
Opting to Be a Walk-In Instead of Using the App
Users may choose walk-in over app reservations to avoid potential fees or the hassle of booking.
Perception that walk-in is more straightforward and less commitment-heavy than app reservations.
This preference reduces the frequency and reliance on the app for dining plans.
Difficulty in Finding Past Reservation History
Challenges in accessing or recalling past reservation history on the app.
Lack of a straightforward way to view or track previous dining experiences.
This difficulty can hinder the user’s ability to revisit preferred restaurants or assess their dining patterns.
How do Resy users end up at restaurants?
USER JOURNEY
BIG TAKEAWAYS
BIG TAKEAWAYS
From this research, we can conclude a couple of things:
The restaurant reservation industry is rapidly evolving with a focus on digital engagement and technology integration.
Millennials and Gen Z are increasingly seeking personalized, convenient, and unique dining experiences.
Users desire loyalty programs that offer real value, personalization, and exclusivity, moving beyond mere transactional interactions.
TLDR: Resy can benefit from crafting a loyalty program that appeals to its tech-savvy audience, offering customized rewards.
THE PROBLEM
The central issue for users of restaurant reservation platforms like Resy is the lack of a personalized and flexible loyalty or membership program that aligns with their individual dining preferences and lifestyle, rather than generic, transaction-focused interactions.
Increase user retention and average bookings per user by introducing a personalized loyalty program into the Resy app experience.
THE GOAL
What should be included in the MVP?
FEATURE PRIORITIZATION & MVP DEFINITION
Developing a robust loyalty program within the Resy app is a significant endeavor aimed at enhancing user engagement and satisfaction. To ensure effective resource allocation and address the most critical user needs, we will initiate this project by launching a Minimum Viable Product (MVP) of the loyalty program. The success of this MVP will guide further expansion and refinement of the program.
| User Story | R | I | C | E | Total |
|---|---|---|---|---|---|
| MVP | |||||
| As a Resy user, I want to see my total points earned from previous reservations. | 4 | 4 | 100% | 1 | 16 |
| As a Resy user, I want to view points earned for previous reservations. | 4 | 3 | 90% | 1 | 10.8 |
| As a Resy user, I want to see my current balance of points to redeem. | 3 | 4 | 80% | 1 | 9.6 |
| As a Resy user, I want to earn points for the reservations I make. | 4 | 4 | 100% | 2 | 8 |
| As a Resy user, I want to redeem my points for rewards. | 4 | 4 | 100% | 2 | 8 |
| As a Resy user, I want to see what I can redeem my points for. | 4 | 4 | 100% | 2 | 8 |
| Future Iterations | |||||
| As a Resy user, I want to see my pending points for future reservations. | 3 | 1 | 80% | 1 | 2.4 |
| As a Resy user, I want to see previous redemptions of my points. | 2 | 2 | 60% | 1 | 2.4 |
| As a Resy user, I want to reach high tiers of loyalty that unlock more rewards. | 2 | 2 | 60% | 2 | 1.2 |
| As a Resy user, I want to redeem my points for discounts at other restaurants. | 2 | 3 | 60% | 4 | 0.9 |
| As a Resy user, I want to book reservations for restaurants that have more points than other restaurants. | 2 | 2 | 60% | 4 | 0.6 |
| As a Resy user with points or status, I want access to exclusive reservations. | 2 | 3 | 40% | 4 | 0.6 |
| As a Resy user, I want to redeem my points for cash. | 2 | 1 | 60% | 4 | 0.3 |
The feature set for our loyalty program MVP will include:
An Easy-to-Navigate Loyalty Program Tab: This feature is essential as it forms the foundation of user interaction with the loyalty program, allowing users to track points and view events with ease.
A Visually Appealing and Intuitive App Interface: Critical for ensuring user engagement and satisfaction, especially among our tech-savvy audience.
Access to a Reward Catalog for Resy and Partner Websites: Offering users a clear view of reward options increases the perceived value of the program and encourages participation.
A Tracking Dashboard on the Landing Page: This feature provides immediate insight into the user's loyalty status and available rewards, enhancing the user experience right from the app's opening.
These features have been chosen for the MVP because:
They address the primary user pain points with the least complexity, providing immediate value and enabling us to gauge whether the loyalty program effectively meets user needs.
The development of these features balances impact and effort, ensuring a timely launch without overextending resources.
They lay the groundwork for more complex features in future iterations, such as enhanced personalization and integration with broader restaurant networks.
By focusing on these key features, the MVP will serve as a litmus test for the loyalty program's effectiveness and user acceptance, paving the way for a more comprehensive and powerful loyalty solution in subsequent phases.
FINAL SOLUTION
Loyalty Program Dashboard & Reward Features on Resy
The final solution is the Resy Loyalty Program Dashboard integrated within the app, providing users with an interactive platform to view their loyalty status and rewards in real-time. This solution includes:
Home Page with Loyalty Dashboard
Upon opening the Resy app, users are greeted by a dashboard that displays their points and available rewards, encouraging immediate engagement.
Personalized Experience
The app's interface is tailored to user preferences, suggesting restaurants and events and remembering past choices for quick rebooking.
One-Tap Reward History Access
With a single tap on the dashboard, users can access a detailed history of their dining reservations, visually tracking their journey and the points earned from each experience.
Engagement Notifications
Push notifications are designed to keep users informed about their loyalty program status and prompt them to take advantage of upcoming dining opportunities.
Searchable Reward Catalog
Users can search through a comprehensive catalog of rewards redeemable on Resy and partner sites, ensuring they can easily find and utilize their benefits.
MEASURING SUCCESS
A/B Test Metrics
NORTH STAR METRIC
Average Number of Reservations Per User Per Month
If we are solving our user’s main pain points, we should see the average number of reservations they book per month increase.
Leading Indicators
App Open to Dashboard Interaction Rate: Measures how quickly users interact with the loyalty dashboard after opening the app.
Dashboard Engagement to Reward Redemption Rate: Tracks how often users redeem rewards after engaging with the dashboard.
Lagging Indicators
User Retention Post-Launch: Monitors if there's an increase in the number of returning users since the introduction of the loyalty dashboard.
Overall User Satisfaction: Assessed through user feedback and satisfaction surveys following the launch.
Counter Metrics
Engagement with Non-Loyalty Features: Monitors if there is a decrease in interaction with other app features due to the new loyalty dashboard.
Average Reservation Value: Ensures the loyalty program doesn't negatively impact the average value of reservations made through the app.
Automated Engineering Alerting: Set up automated alerts for technical issues that users encounter with the new dashboard.
Customer Support Feedback Loop: Establish a direct feedback channel from customer support to the product team for rapid response to user concerns.
Data Analytics Tracking: Implement comprehensive tracking within the app to monitor user interactions with the loyalty program in real-time.
Regular Review Cycles: Schedule weekly reviews of the above metrics to quickly identify trends and address any areas of concern.
Monitoring Mechanisms
Success for this product launch will be a combination of increased user engagement with the loyalty program features, maintained or improved usage of other app functionalities, and positive user feedback, all while ensuring any potential negative impacts are promptly addressed.
A/B Test Resy’s Loyalty Program
LAUNCH & GTM STRATEGY
To enhance the Resy app's user experience with our new loyalty program dashboard, we'll conduct a controlled rollout through A/B testing. This approach will help us understand the feature's impact on user behavior and ensure it meets our audience's needs.
Versions:
Control: Existing Resy app without the new loyalty program dashboard.
Variant: Resy app including the new loyalty program dashboard and features.
Audience: Users who are
Located in urban and metropolitan areas within the United States.
Ages between 25 to 40 years, aligning with our core user demographics.
Primary Metric:
Average bookings per user per month
We’ll include both new and existing users in the A/B test to determine the dashboard's effect on user engagement and ensure it doesn't impede the onboarding process or core functionality usage. Initially, 10% of our target audience will experience the variant to allow for iterative development based on user feedback without broadly impacting the user base.
Rollout Plan:
If the A/B test yields positive results (reduction in time to engage with loyalty features without negative repercussions), we will broaden the test to include our entire user base in the United States. Positive outcomes at this stage will lead to a full rollout to all U.S. users.
Expansion and Iteration:
Following successful national implementation, we will focus on enhancing the loyalty dashboard experience with additional planned features. Subsequently, we aim to support international users with the dashboard, adapting it to global markets.
Contingency Plan:
Should the A/B test results not meet our expectations, we will delve into the data to identify issues, refine the features, and retest until the desired user experience improvements are realized.
Final Thoughts
Final Thoughts
To conclude, this case study began with an investigation into how we could enhance the Resy app to better serve users' needs for a personalized and engaging dining reservation experience. Through user research, critical pain points were identified, such as the desire for a more interactive loyalty program and concerns around reservation fees. The solution developed—a sophisticated loyalty program dashboard with personalized features—aims to address these issues directly.
The MVP of this loyalty program dashboard will be A/B tested with the primary goal of reducing the time users take to interact with the loyalty program, thereby increasing engagement and satisfaction. This MVP is designed to alleviate the core difficulties our target user segment experiences and to offer a more rewarding and seamless app experience.
If the A/B testing yields positive outcomes, the recommendation is to enhance the loyalty program dashboard further, incorporating user feedback and additional features that will bring even more value to users. Following a successful national launch, the plan is to extend the improved loyalty program globally.
This solution will not only improve user satisfaction but also contribute to the business's growth by increasing user retention and the frequency of reservations made through the Resy app.