Mastercard StoryShare E-Book A COMMISSIONED STUDY CONDUCTED BY FORRESTER CONSULTING ON BEHALF OF MASTERCARD, MARCH 2023 Results From The March 2023 Thought Leadership Paper, “Improve Point Of Order Engagements By Serving Your Consumers Digitally”
© Forrester Research, Inc. All rights reserved. Executive Summary Gone are the days of stove-piped, manual ordering experiences. Here to stay is an integrated digital experience that puts consumers firmly in charge of the point of order/point of sale experience. Restaurants must meet consumers where they are with integrated, seamless order and delivery experiences —online, by app, or on-premises —and build digital relationships with them to remain relevant. Mastercard commissioned Forrester Consulting to evaluate customer behavior engaging with quick service, fast casual, casual, and coffee or bakery dining establishments. Forrester also evaluated the digital strategies that these restaurant types are deploying to better understand how customer needs are being met and where there are opportunities. To accomplish this, Forrester conducted an online survey with 2,312 global consumers who frequent these types of restaurants and 427 global technology, operations, and customer experience professionals who lead or influence point of order and point of sales experiences. We found that restaurants need to exploit the growing digital bond with their consumers by fully developing and using digital capabilities and, in the process, make the digital experience a seamless extension of the in-person experience. The result? Happier consumers who will buy more.
Key findings Restaurants must invest in digital point of order and point of sale solutions to catch up to consumers’ current desires to engage digitally. Digital technology must be easy to use and intuitive to engage audiences of all ages and expand existing digital relationships with consumers. Restaurants can strengthen CX through effective use of loyalty programs, personalization, and enhanced security while engaging digitally. Restaurants must better utilize the data they collect, especially to inform their digital touchpoint strategy.
Restaurants see the highest digital engagement from consumers under 40 43% 29% 57% 54% 61% 64% 72% 74% Pay through a digital kiosk or device with a touchscreen at the restaurant using my credit or debit card Pay with a digital wallet from your phone Look up a menu online with my own personal device Pay online using credit or debit with your personal device 18 to 40 41+ Technology Used When Engaging With Restaurants (Showing “Use frequently” and “Use all the time”) The COVID-19 pandemic prompted the extended use of digital technology when engaging with a restaurant. Consumers of all ages are now using technology, mostly for payment methods. Base: 1,815 global consumers who frequent quick or counter service restaurants and have used ordering or payment technology when engaging with restaurants. Note: Showing four responses Source: A commissioned study conducted by Forrester Consulting on behalf of Mastercard, December 2022
Consumers are highly satisfied with the digital technologies they engage with As engagement with digital technology increases, restaurants must keep up with demand and improve customer experience (CX) and customer satisfaction to strengthen their relationships with consumers. of consumers age 41+ say they are very satisfied with their experience when looking up a menu online with their personal device 92% 90% of consumers say they are satisfied with their experience when paying through a digital kiosk/device with a touchscreen at the restaurant using a credit/debit card 87% of consumers ages 18 to 40 say they are very satisfied with their experience when paying with a digital wallet from their phone Base: 1,564 global consumers who frequently use digital technology when they frequent quick/counter service restaurants Source: A commissioned study conducted by Forrester Consulting on behalf of Mastercard, December 2022
Greater investment in digital/mobile point of ordering and payment technologies are needed as consumers become more digitally savvy Top 5 Current Point Of Order Systems Deployed And Level Of Satisfaction Base: 1,564 global consumers who frequently use digital technology when they frequent quick/counter service restaurants *Base: 427 global technology, operations, and consumer experience professionals in quick/counter service restaurants Source: A commissioned study conducted by Forrester Consulting on behalf of Mastercard, December 2022 48% 51% 58% 59% 60% Mobile ordering and payment on personal devices in store via a QR code, website, or app Mobile ordering and payment on personal devices out of store via a QR code, website, or app (delivery or pick up) Person-to-person ordering at restaurant locations Digital payment for debit, credit, and mobile payments at restaurant locations Digital payment for debit and credit cards at restaurant locations 86% 91% 87% 87% 89% Deployment rate at restaurants* Customer satisfaction (showing only “Somewhat satisfied” and “Very satisfied” responses)
© Forrester Research, Inc. All rights reserved. Restaurants are turning to third-party digital ordering aggregators to keep up with consumer demands Top Digital Touchpoints Restaurants Currently Deploy Base: 427 global technology, operations, and consumer experience professionals in quick/counter service restaurants Source: A commissioned study conducted by Forrester Consulting on behalf of Mastercard, December 2022 47% Integrated online ordering through third-party aggregators 41% Technology integration with digital customer engagement, marketing, and loyalty programs 40% Integrated online ordering through our own website 37% Mobile dining apps with QR code capabilities
© Forrester Research, Inc. All rights reserved. 42% of decision-makers are using insights from their digital touchpoints to improve general consumer experience practices The use of digital touchpoints improves CX and strengthens consumer loyalty, leading to significant benefits for restaurants 52% of decision-makers report increased loyalty/revisit rates (e.g., more revenue, larger check size, higher trip frequency) as a result of the digital touchpoints they use Base: 427 global technology, operations, and consumer experience professionals in quick/counter service restaurants Source: A commissioned study conducted by Forrester Consulting on behalf of Mastercard, December 2022
Incentives through loyalty programs encourage digital interactions with restaurants Importance Of Restaurant Loyalty Programs Loyalty incentives are important to consumers of all age groups and foster deeper digital relationships beyond ordering and payment are encouraged to interact digitally if the restaurant has special loyalty perks specifically for the restaurant 40% 74% 86% of users ages 18 to 40 regard loyalty programs as an important attribute in the digital ordering experience of users ages 41+ regard loyalty programs as an important attribute in their digital experience Base: 2,312 global consumers who frequent quick or counter service restaurants Source: A commissioned study conducted by Forrester Consulting on behalf of Mastercard, December 2022
Usability and security are key components to a positive digital experience Built-in loyalty programs (e.g., getting rewards/offers for digital ordering) 79% Enhanced security when logging in 86% 93% Ease of use Enhanced security and privacy are important to consumers when engaging digitally. Consumers are increasingly concerned with keeping their data secure. Restaurants now have a responsibility to protect consumer data and provide effective security throughout the engagement to offer consumers a positive experience. Top Attributes For Creating Ideal Digital Ordering Experiences Base: 2,312 global consumers who frequent quick or counter service restaurants A commissioned study conducted by Forrester Consulting on behalf of Mastercard, December 2022
25% 75% 83% of digital strategy decision-makers agree that they struggle with consumer personalization due to privacy and security Only 25% of respondents’ restaurants use personalized offers or coupons curated and triggered or displayed for specific consumers Restaurants must integrate personalized experiences for consumers while maintaining security and privacy Base: 427 global technology, operations, and consumer experience professionals in quick/counter service restaurants *Base: 2,312 global consumers who frequent quick or counter service restaurants Source: A commissioned study conducted by Forrester Consulting on behalf of Mastercard, December 2022 88% of respondents think enhanced data security is important when ordering from a restaurant digitally*
© Forrester Research, Inc. All rights reserved. Digital technology allows decision-makers to collect consumer data, but they struggle to make it actionable to further personalization Biggest Challenges With Consumer Personalization Opportunities To Improve Consumer Personalization Ineffective data management prohibits restaurants from creating actionable insights that help promote consumer loyalty and CX. Restaurants see opportunities to strengthen consumer personalization through utilization of digital touchpoints, such as app mobile engagement and engagement at a digital kiosk. 42% 52% Lack of data on customers Too much data on customers to distill and make actionable 70% 78% Engagement at a digital kiosk App mobile engagement Base: 427 global technology, operations, and consumer experience professionals in quick/counter service restaurants Source: A commissioned study conducted by Forrester Consulting on behalf of Mastercard, December 2022
© Forrester Research, Inc. All rights reserved. Industry data and competitive insights enables decision-makers to set and execute long-term strategic goals Decision-Makers Are Using Data To Better Inform Business And Offering Decisions 40% 46% 44% 48% 42% 38% 46% 47% 82% 84% 90% 94% Competitive insights help us with new product offerings. Competitive insights help us with new service offerings. Industry data is a critical component of our business strategy. We use industry data to help inform business decisions. Strongly agree Somewhat agree Strongly/somewhat agree Base: 427 global technology, operations, and consumer experience professionals in quick/counter service restaurants Note: Total percentages may not equal separate values due to rounding. Source: A commissioned study conducted by Forrester Consulting on behalf of Mastercard, December 2022
© Forrester Research, Inc. All rights reserved. Restaurants must catch up to the overwhelming consumer preference for mobile ordering and payment. Surveyed consumers are very satisfied with mobile ordering, yet a significant percentage of surveyed decision-makers said their restaurants still do not offer it. Mobile applications enable restaurants to showcase user feedback and professional photos, which can enhance the ordering and dining experience. Restaurants can benefit from enhancements to their loyalty programs and personalization efforts. Restaurant patrons love their loyalty programs and dynamic recommendations. Better personalization is an effective way to generate more value from loyalty programs without reducing profit margins. Even sophisticated digital restaurants stand to gain from better data capture and mining. Data rests on many levels for restaurants: It consists of consumer data, inventory data, associate data, location data, and competitive intelligence. Restaurants must determine cross-functional ways to use all data sources across their organizations effectively. Key recommendations
© Forrester Research, Inc. All rights reserved. In this study, Forrester conducted an online survey of 2,312 consumers who frequent quick or counter service restaurants, and another with 427 technology, operations, and CX professionals who lead or at least influence point of order or point of sale experiences in the US, the UK, India, Canada, Brazil, Germany, New Zealand, and Australia to understand how consumers are engaging with quick-service restaurants, and how the digital strategies these restaurants are deploying impact CX. Respondents were offered a small incentive as a thank you for time spent on the survey. The study began in November 2022 and was completed in December 2022. Methodology Project Team: Brett Chase, Senior Market Impact Consultant Jenna Bonugli, Associate Market Impact Consultant Contributing Research: Forrester’s Digital Business Strategy research group ABOUT FORRESTER CONSULTING Forrester provides independent and objective research-based consulting to help leaders deliver key transformation outcomes. Fueled by our consumer-obsessed research, Forrester’s seasoned consultants partner with leaders to execute on their priorities using a unique engagement model that tailors to diverse needs and ensures lasting impact. For more information, visit forrester.com/consulting. © Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. For additional information, go to forrester.com. [E-55771]
© Forrester Research, Inc. All rights reserved. Download the full study: Improve Point Of Order Engagements By Serving Your Consumers Digitally Explore More RELATED FORRESTER RESEARCH “Research Overview: Strategies For Digital Success At Quick-Service Restaurants,” Forrester Research, Inc., April 24, 2020. “US Consumers Need Help To Stay Engaged In Loyalty Programs,” Forrester Research, Inc., June 17, 2022. CONTACT MASTERCARD Read now
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