Friends of Branded:
Happy Saturday and I hope you had a great week.
At dinner on Wednesday night this week, my 9-year-old daughter was sharing, in great detail may I say, the events of a game of tag that her friends were playing on the rooftop of her school. The moment was a little surreal b/c I attended the same school and can recall my own games of tag nearly 50 years ago on that same rooftop.
I don’t remember my sharing the same level of details of my own games of tag with my parents, but that’s probably b/c as a ‘huskie’ kid, I was particularly slow, which didn’t lead to much glory in the game for me (and I was happy to hear that my daughter is having far more success in early-stages of her tag career).
On Thursday this week I was at a lunch meeting with several industry experts when I heard frustration with a tech platform that doesn’t allow for the removal of “tags” when it comes to guest profiles. They can hide the tags but can’t remove them.
While this discussion was about the issues with a particular technology company’s inability to deliver on this desired functionality, it wasn’t lost on me how the use of guest “tagging” as a much needed and value-added strategy for operators is still not universally embraced.
Don’t get me wrong, guest tagging is steadily growing in its usage, but I’d argue that we’re still in the early innings of widespread and universal embracement.
Adding to the perplexity, the embracement of “tagging” by restaurants is NOT something guests explicitly realize is even taking place.
That’s right diners, while you’ve never been more informed or had more access to information on restaurants, guess what friends? We’re learning, and we know a few things about you too (and we keep them on your guest profile).
First, let’s be clear, the act of tagging (aka: labeling, profiling, segmenting) is important for operators b/c it can lead to more personalized experiences, can help tailor marketing and boost loyalty. When I refer to “tagging,” I want to be clear that I’m specifically talking about the act of attaching metadata or labels to guest records. This can be done in a CRM, reservation system or POS and denotes attributes, preferences, behaviors, or affinities of the guest.
These tags create a better opportunity for operators to know something meaningful about the guest and ideally act on it.
I was discussing with a group of non-industry friends (yes, I tag my friends as “industry” and “non-industry” 😊) some of the guest engagement technology platforms Branded is working with to help operators know their guests to deliver better experiences, but also to create opportunities for operators to create & capture greater value from their guests.
It was interesting to hear the negativity to the perceived lack of “fairness” and how some guests, based on their profiles or otherwise, might get a better table, a complimentary drink, appetizer, or dessert, or essentially garner more attention and even favoritism, than other guests.
It doesn’t remotely surprise me when people look at or treat the hospitality industry differently than others (I subscribe to Mr. Chris Rock’s theory of not being surprised when people behave exactly as you expect them to). In response to the concerns or even surprise by my friends that restaurants would tag guests to have some sort of mechanism to offer prioritization, I asked if they felt the same about airlines use frequent flyer program or a hotels loyalty program, which affords passengers and guests respectively, the opportunity for upgrades and privileges. (Shoutout to Delta’s SkyMiles and Marriott’s Bonvoy, let’s keep those points and upgrades flowing!)
In the category of Captain Obvious, when it comes to airlines and hotels, no, they’re okay with that type of tagging, but they still feel its right to hold restaurants to a different standard.
This week’s Top of the Fold isn’t a bitch session about the expectations or standards the hospitality industry is held to, but rather a call to action (“CTA”) for operators to embrace guest tagging in some form or another, and to do so in a manner that will balance the benefits of data-based decision-making with the tradeoffs that will come from guests.
Guest value personalization and they want operators to know them when it’s clearly beneficial for them. There’s an abundance of research that shows guests will share personal data in exchange for personalized experiences and offers. This represents a strong tailwind for operators that are embracing the collection and utilization of guest data as your audience is almost enthusiastically willing to give it you.
To some extent, this will prove to be a self-fulfilling prophecy.
Personalization will become more common and will establish a new baseline when it comes to guest expectations. As the new baseline, operators that don’t embrace personalization will be at risk as being viewed as offering generic experiences. According to the National Restaurant Association, 62% of consumers say a brand may lose their loyalty if it fails to deliver personalized experiences. Therefore, generic experiences will be seen as irrelevant, that leads to indifference and that translates to loss of business.
To strike the balance between value to the operators and benefits to the guests when it comes to the leveraging guest data, it will come down to trust and transparency. When the guest trusts a brand, understands why the data is being collected and believes they have some control (meaning: the ability to opt out or limit its usage), they will be more comfortable with guest tagging. Transparency and informed consent are the keys here.
What the guest therefore dislikes or reacts to negatively is the feeling of intrusiveness or that “creepiness” factor.
Personalization can be deemed too invasive if it leads to ads or messaging that references something private or when data seems to be spying on them. In a survey by the Boston Consulting Group (“BCG”), it found that two-thirds of consumers reported having at least one negative personalized experience that caused them to disengage with a brand.
While I refer to this as the “creepiness” factor, this is well-documented as the “personalization-privacy-paradox,” which is the balance between people wanting personalization, but also fearing excessive data collection and surveillance.
To my operator friends, I understand that the need to strike a balance between the value that you can garner from guest tagging versus the risks of alienating (p#ssing off!) your guests may seem like a hill you don’t want to die on. Respect.
But I’d argue that despite these risks, the value of guest tagging is too important for you to remain on the sidelines and is quickly becoming table stakes. If you’re not currently tagging, consider walking before you run (or even crawling before you walk). Start with some light, non-sensitive tagging. What type of seat does the guest prefer? Are they a vegetarian? Are there any allergies to be aware of? This is NOT deep profiling, and you can expand and grow accordingly.
Clearly, tagging is more common among larger, more upscale, or high-end restaurants. These are groups that are of course more likely to invest in systems that enable guest tagging b/c these types of venues emphasize personalized services, deeply desire repeat visits and brand differentiation.
But what segment of the restaurant industry doesn’t desire repeat visits or brand differentiation? Who doesn’t want oxygen?
Let’s turn this word “democratization” around a little bit. Guests don’t really want a democratized process when it comes to engaging with restaurants, they want one that works best for them (put this in the category of Milton Friedman’s motivation by self-interest).
The tech platforms that can help you leverage guest data and turn it into actions has become incredibly democratized and is readily available. You don’t need to be a premium or high-end operator to secure the tools you need to embrace a guest-centric and tagging strategy.
The barriers to entry and constraints have come down.
I know, I know, as operators, you’re concerned that if you try to add one more piece of tech to your stack, your team will revolt. I get it. I really do.
But the perceived risks when it comes to the costs, constraints, operational challenges, and burden on your team in connection with embracing a guest data driven and tagging strategy are outweighed by the value and ROI.
The ROI will be meaningful and the while any concerns around how your guests will perceive an embracement of this strategy is of course justified, the path we’re on is clear and guest tagging will be widespread and universal. The depth and level of sophistication will of course vary (I’m not suggesting you start with “advanced tagging” which includes behavioral cohorts, lifestyle automation, omnichannel customer data platform flows), but make no mistake, your competitors are leaning in and if you choose to remain on the sidelines, it will be to your disadvantage when it comes to guest retention, marketing, loyalty and operational efficiencies and insights.
Don’t shoot the messenger, but guest expectations are changing, and personalization, loyalty and rewards systems are in!
Yes, these same guests will raise eyebrows or even resist when it comes to the collecting and using their data, but they will frequent and spend at the very restaurants that are effectively executing a guest tagging strategy as long as it works and benefits them!
It takes a village.
The Springboard Franchise Conference lit up Philadelphia last week, bringing together over 700 franchise founders and executives for three days of learning, networking and, yes, a little partying, too.
Built for emerging and re-emerging franchisors, Springboard delivered practical insights, real talk, and powerful connections, including sessions led by seasoned leaders who’ve “been there, done that.”
We loved seeing so many familiar faces and franchise stars on stage, including Branded’s very own Restaurant Guy, Michael “Schatzy” Schatzberg, who joined the panel “Intelligent Interactions: AI Tech Transforming Franchise Customer Experience.”
The discussion dove into how AI is already reshaping the franchise world, even if we’re still in the early innings, creating smarter, more personalized interactions that drive satisfaction, loyalty, and revenue.
Huge kudos to our friends at Fishman PR (Brad Fishman! Zack Fishman! Sherri Fishman!), along with all the organizers, speakers, and franchise trailblazers who continue to shape the future of franchising, from foodservice to retail and beyond.
If Springboard isn’t yet on your radar—or if you want an inside look at the power of franchise storytelling and PR—check out our past Hospitality Hangout episode featuring Sherri Fishman: 🎧 Listen here.
Global supply chains don’t speak the same language.
Every company tracks its products differently—but none of that data connects across systems.
Starfish has changed that.
They've built the data infrastructure for the physical world—a secure network that connects and standardizes how companies share information about where products come from and where they go. Through these connections, Starfish has unlocked proprietary, verified data on global product flows—creating the foundation for new intelligence, transparency, and trust across industries.
Starfish is rapidly expanding, and becoming the data backbone of global trade.
Interested in learning more? Reach out right here.
Don’t just scroll—click! Congratulate everyone on making the B List and send some LinkedIn love their way.
