Nathan Breneman

Vice President at R&R BBQ, shared his experience with Loop's TruROI+:

"Loop excels in making complex third-party delivery systems comprehensible. To truly grasp how third-party delivery works, I'd need to allocate my time differently, time I don't have. Do I really want to understand what some of this vernacular is and how it interplays, or can I have Loop manage that for me so I can focus on my strengths? So, it's reassuring to know that you have a structured plan to lead us to success. Given what we've achieved in the past two months, I'm even more excited about our future. I'm really looking forward to it because third-party delivery finally makes sense."

Thriving in a world of 3PD Marketing with Data-Driven Precision

A case study of Loop AI’s engagement with R&R BBQ, a Savory Brand Partner

Total Sales per $ spent was increased by 24%

Marketing efficiency by 24%

Improved Repeat Rates: Customer repeat rates increased 5.2%

Net margins improved from 41% before to 47% by the second month of the pilot

The Challenge

3PD Marketing questions:

Does 3PD drive incremental sales to my in store foot falls
What %age of my total marketing spend should I allocate to 3PD
Is it possible to run 3PD marketing in a profitable way
What %age of marketing spend is acceptable

In the rapidly evolving world of Third Party Delivery (3PD), R&R BBQ found itself at a critical juncture. With a robust presence on platforms like DoorDash, Uber Eats and GrubHub, the Utah-based BBQ chain had long benefited from the convenience and reach these platforms offered. However, as competition intensified, it became evident that merely participating in 3PD was no longer sufficient. Effective marketing on these platforms had become crucial and R&R BBQ needed to excel to thrive. This is where Loop's end-to-end, fully managed 3PD marketing solution, TruROI+ entered the picture, revolutionizing R&R BBQ's approach to 3PD marketing.

Piloting TruROI+ with Loop

The primary objectives for the pilot were threefold:

Optimize Marketing Spend: Manage the overall marketing expenses optimally while maintaining and increasing sales steadily across every platform as per their nuances.
Increase Repeat Rates: Enhance customer retention and repeat purchase rates.
Identify Inefficiencies: Detect and address issues like “double dipping” that dilute marketing effectiveness

Loop’s TruROI+ offered an end-to-end, data-driven, scientific approach towards tackling these challenges. The process began with an exhaustive analysis of R&R BBQ’s marketing spending, customer behavior on different 3PDs and their corresponding sales and marketing data. With these insights, Loop devised a strategic plan to reallocate marketing budgets more effectively, optimize marketing spends and monitor performance continuously on a real time basis, something most operators struggle to fit into their day to day.

Loop piloted TruROI+ with R&R BBQ in a phased approach, making incremental adjustments to their 3PD Marketing strategies based on detailed data analysis.

What changed in R&R BBQ’s Marketing Approach

Before Loop: Do It Yourself (DIY)

TruROI+ by Loop

Time and Resource Intensive:

No in-house expert managing 3PD marketing end-to-end

One Stop, End-to-end Solution:

Sophisticated end to end marketing solution which not only works as an extension of R&R BBQ’s marketing team in managing, optimizing and running campaigns, but also doubles down as their business partner in scaling 3PD as a channel profitably using advanced algorithms and real-time data at 1/10th the cost

Monitor using ROI as the North Star:

Higher ROI does not equal more money in the bank, but that is what is readily available on 3PD portals for consumption

Money in the Bank as the North Star:

Loop’s superior data and tech capabilities helps us cut the clutter and focus on the absolute north star - $ in the bank

Distributed Focus:

Running a hospitality business is hard enough, R&R BBQ had to digest tons of data above and beyond that to manage this channel

Focus on your strengths:

Loop owns the task of bringing R&R BBQ the demand with its tech capabilities so that R&R BBQ can focus on their strength (hospitality & 5 Star Guest Experience)

Occasional Monitoring of Status Quo:

3PD needs constant tweaks & monitoring; something most operators don’t find the time for.

Constant Monitoring, Experiments & Tweaks:

Loop immediately optimizes for every potential opportunity to improve marketing efficiency & goes after it

Do as the 3P Account Manager says:

Not Aligned with your incentives

Loop Advisory & Execution:

Your business goal is our goal; complete alignment of incentives

The Results

Before Loop

R&R BBQ’s marketing spends were highly unoptimized, needing a clean up with a razor sharp focus on eliminating double dipping and targeting high-value customer segments more effectively

After Loop

Total Sales per $ spent was increased by 24% in the first month of going live. Loop’s superior AI models identified additional inefficiencies and optimized spending across different channels with constant recalibration, increasing marketing efficiency by 24%.

After Loop

Continuous optimization and refined targeting strategies during the second month of the pilot kept the sales momentum, while optimizing the $ spent. This phase marked a second step improvement in Total Sales per $ spent by 36% while maintaining sales growth, highlighting the effectiveness of Loop's approach

After Loop

Improved Repeat Rates: Customer repeat rates increased 5.2% from a baseline of 47% to greater than 52% over the course of the pilot

Enhanced Margins: Net margins improved from 41% before the pilot to 47% by the second month of the pilot, demonstrating improved profitability through this exercise.

What other brands can learn from R&R BBQ's experience

Presence in 3PD used to be a “good to have'' strategy for restaurant businesses, but with the meteoric rise of this channel, it is not just 3PD presence but command over 3PD marketing that has become a “Must have” tool in your repertoire. 3PD marketing is more science than art and a whole different beast to tame compared to traditional marketing and you need the right matadors for it - Loop’s TruROI+ and its cutting edge AI and data capabilities provide you with a one-stop shop as an operator/ restaurant business to manage all your 3PD marketing end-to-end and achieve your business goals.

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