OPERATIONS

Trustwave denies handling Target data security

BY Dan Berthiaume

Chicago – Information security firm Trustwave Holdings Inc., which is being sued in connection with the Target Corp. data breach, is denying that it managed data security for Target. In a letter to its business partners and clients, Trustwave CEO Robert McCullen said Trustwave did not monitor the Target data network or process credit card data from the retailer’s customers.

Trustwave is named along with Target in a lawsuit filed by Trustmark National Bank and Green Bank NA in the Northern District of Illinois that seeks at least $5 million in damages. The suit alleges Trustwave and Target improperly secured customer data, enabling the theft of millions of credit card numbers. The banks also intend to file a class action suit whose damages may total $1 billion.

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MARKETING/SOCIAL MEDIA

Survey: Restaurant loyalty programs have low participation

BY Dan Berthiaume

New York — Just one-quarter (25%) of consumers consider loyalty programs important when choosing a restaurant. According to a new study from Deloitte, 50% of survey respondents said they belong to at least one restaurant program, a much lower rate compared with those of other sectors, such as airlines (78%) and hotels (70%).

Among consumers who belong to at least one loyalty program, nearly three-quarters (74%) indicate that they do not participate in their favorite restaurant’s program, either because they say one is not offered or they are simply not sure whether one is available. But among the other 26% who indicate that their favorite restaurant offers a loyalty program, a large majority (87%) actually belongs to it, which Deloitte says implies a high conversion rate among a restaurant’s best customers.

Only one-third (33%) of respondents felt that they had developed a personal relationship with their favorite restaurants’ brand and people. Attributes such as responsiveness and friendliness of staff rank high (fifth and eighth out of 23 attributes) in terms of importance to the restaurant experience, and relatively high in terms of repeat patronage (11th and 10th). While these characteristics rank high, consumers still hesitate to share their experiences about them. Roughly seven-in-10 (71%) survey respondents liked the menu options at their favorite restaurants, but only 42% would be willing to serve as brand ambassadors, and 61% said that they never or rarely wanted restaurants to contact them for personal feedback.

However, there are a number of untapped opportunities for restaurants to engage their patrons in a manner they prefer. About six-in-10 (61%) consumers indicate they prefer to be contacted via email, while less than half this amount (28%) say restaurants actually do so. One half (50%) prefer traditional mail, 29 percentage points higher than the number who say they receive it.

Restaurants can also amplify their engagement through mobile channels. Among consumers who have downloaded a mobile application (19%), the primary reasons for doing so include viewing restaurant menu and prices (55%), and checking for hours of operation (46%).

"Although restaurant loyalty program participation is lagging, the study indicates that consumers do not have an inherent aversion to such programs," said Scott Rosenberger, principal, Deloitte Consulting LLP and Deloitte’s U.S. consulting travel, hospitality and leisure leader. "These programs can drive value if promoted effectively, as a restaurant’s most frequent patrons are more inclined to join that restaurant’s program and use it more than any others. Additionally, we found that those core customers who do belong to their most-visited restaurant’s program are more satisfied customers and stronger brand advocates than those who do not. Restaurants should clearly market these programs to consumers to encourage participation, increase customer visits and strengthen the connection between members and the brand."

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MARKETING/SOCIAL MEDIA

Pinkberry enters Japan; plans 50 stores

BY Dan Berthiaume

Los Angeles – Pinkberry’s is entering the Japanese market with franchisee Royal Holdings. Japan is the 20th country where Pinkberry will operate stores.

Royal Holdings who operates 722 restaurants across several brands, both full service and QSR concepts. The partnership provides growth opportunities in the market for both traditional stores and non-traditional venues, with an initial development plan for 50 stores.

"Critical to opening in Japan was to find a local partner who shared our values and was singularly focused on exceeding customer expectations day in and day out,” said Ron Graves, CEO of Pinkberry. “We are proud to be working with the Royal Holdings team.”

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