Subway, a leading quick-service restaurant (QSR) brand, employs various marketing strategies to drive customer loyalty and retention. One of their most effective strategies is email marketing to reach customers personally, offer exclusive deals, and keep them updated on new products or promotions. This case study aims to provide insight into Subway’s strategic use of email marketing to enhance customer loyalty.
Company Overview
Subway is an American privately-held restaurant franchise that primarily sells submarine sandwiches (subs) and salads. Founded in 1965, it has since grown to become one of the fastest-growing franchises in the world, with over 41,600 locations in more than 100 countries as of 2019.
Email Marketing Strategy
Subway’s email marketing strategy is centered around its frequency of communication, personalization, and value proposition. The brand strongly believes in keeping its customers engaged with regular updates without overwhelming them with too many emails.
- Frequency of Communication: Subway sends out emails to their customers regularly, ensuring they are constantly in touch with their customer base. They typically send weekly emails, including updates about new products, upcoming promotions, or special deals. For an in-depth look into how digital marketing impacts the food industry, click here.
- Personalization: Subway takes personalization to another level by customizing its emails based on customers’ past purchases and preferences. For instance, if a customer often orders a particular sub, Subway sends them deals or promotions related to that sub. This level of personalization makes the customers feel valued and encourages them to continue patronizing Subway.
- Value Proposition: Subway’s emails always include a value proposition for their customers. Whether it’s a special discount, a buy-one-get-one-free offer, or a sneak peek at a new product, Subway ensures that their emails always offer value to their customers. This incentivizes them to open and read the emails and drives them to visit Subway’s outlets or website to redeem the offers.
Impact on Customer Loyalty
Subway’s email marketing strategy has significantly bolstered its customer loyalty metrics. Their personalized emails make their customers feel recognized and appreciated, fostering loyalty toward the brand. Moreover, by constantly offering customers value through their emails, Subway ensures they have a reason to continue patronizing them.
Furthermore, Subway’s regular email updates keep the brand at the top of their customers’ minds, increasing their likelihood of choosing Subway over their competitors. This consistent engagement, combined with the value offered in the emails, has resulted in a high open rate and click-through rate for Subway’s emails, indicating high customer engagement and loyalty.
Conclusion
Subway’s strategic use of email marketing is a testament to the power of personalized and value-added communication in fostering customer loyalty. By sending regular, personalized, and value-driven emails, Subway keeps its customers engaged, makes them feel valued, and gives them reasons to continue patronizing the brand. As a result, Subway enjoys high customer loyalty, which is critical to its ongoing success in the highly competitive QSR industry. For more successful marketing strategies in the food industry, check this out.