Foursquare’s Location-Based Loyalty Metrics Point to Best Practices for Casual Restaurants

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Photo by Alex Holyoake.

Brushing aside customer surveys and other imprecise measures of customer loyalty, location intelligence firm Foursquare released a location-based report this morning that evaluates best practices and practitioners in loyalty among casual restaurant chains.

Foursquare’s loyalty index hinges on the frequency of customer visits, the number of visits required to make it into the top 1% of a brand’s loyalists, a brand’s penetration into its market’s customer base, and the share of wallet it commands for the average customer’s spend in casual dining.

Best in class this year were Waffle House, Buffalo Wild Wings, Applebee’s, Old Chicago Pizza & Taproom, and Denny’s. Olive Garden and The Cheesecake Factory ranked among the lowest brands in Foursquare’s top 50.

Most importantly for future considerations, the report suggests that brands can improve loyalty in all four of the areas that contributed to its index. Below is a summary of the report’s proposals for improvement:

  • Frequency: Delivery location-contextual messaging. Segment customers based on their interest. Don’t rely on discounts as a one-size-fits-all strategy.
  • Share of Wallet: Identify rivals through the use of location data, and try to win back your customers. Be visible out there in the digital world to get traffic in the physical one.
  • Market penetration: Target the segments where you’re already successful. Seek out similar audiences not already crazy about your brand. Measure effectiveness of current media.
  • Fanaticism: Find out who your most loyal customers are, and cater to them. Design promotions with their specific preferences in mind.


Joe Zappa is the Managing Editor of Street Fight. He has spearheaded the newsroom's editorial operations since 2018. Joe is an ad/martech veteran who has covered the space since 2015. You can contact him at [email protected]
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