Morning Brew - Sweetgreens are made of these

Sweetgreen wants to challenge (and reward) its loyal customers.
Morning Brew June 27, 2022

Retail Brew

Salesforce for Retail

Happy MBonday! Today you may make a surprising discovery in the mall food court. Cinnabon has introduced a menu item that lacks what is—in every sense of the word—the brand’s essence: cinnamon. Chocolate BonBites, according to CNN, are its first to forgo cinnamon, and it raises the question: Hasn’t Saul Goodman already been through enough tumult?

In today’s edition:

—Katishi Maake, Andrew Adam Newman, Glenda Toma

QSR

Sweeten the deal

Sweetgreen salad bowl Francis Scialabba

Sweetgreen is on the hunt for its most loyal customers. After piloting a subscription program earlier this year, Sweetgreen is debuting a new rewards offering today.

The deets: Called Rewards and Challenges, it enables customers to opt in to participate in weekly challenges, like spending $20 to receive $4 off toward their next purchase, adding a side item to receive a free beverage, or ordering delivery to receive free delivery on their next order.

  • The feature is also meant to see what personalized elements consumers respond to as part of its future loyalty program.
  • Throughout the past year-plus, Sweetgreen has been “testing personalized and cohorted offers” and iterating depending on the type of customer and their needs, Daniel Shlossman, Sweetgreen’s chief digital officer, told Retail Brew, with Rewards and Challenge being the latest.

“The beauty of something like Rewards and Challenges is that…you can give someone a challenge that is very different based on who they are as a customer versus someone else,” Shlossman said.

Trial and error: Shlossman said he hopes Rewards and Challenge will work in tandem with something like Sweetpass—the $10 subscription service the company tested for a month earlier this year. (It offered customers a $3 credit on certain orders once a day.)

  • Sweetgreen sold just under 17,000 passes over the course of the pilot, according to the company. It found that 90% of customers surveyed said they were interested in purchasing a pass again after the trial, Shlossman said.
  • And, as a bonus, 60% of subscribers were new, lapsed, or low-frequency customers.

“We’re gonna test our way there. We’re gonna continue to talk to customers about what they want, and this is that kind of next step in the process,” Shlossman said.

Looking ahead…What does the future of Sweetgreen’s broader loyalty program look like? Shlossman didn’t share a timeline but said it could feature a subscription and personalized promotional capabilities.

Sweetgreen is also very much about targeting digital customers: Those sales accounted for 66% of the company’s revenue of $102.6 million in Q1. “That’s really important for us to have that strong digital base,” Shlossman said. “We believe that [by] layering on things like Rewards and Challenges, we’re going to be able to up that value—especially as we’re heading into these tough economic times.”—KM

        

TOGETHER WITH SALESFORCE FOR RETAIL

Get in the holiday (planning) spirit

Salesforce for Retail

It may be flip-flop season, but retailers are already starting to plan for the holidays. And with inflation, supply-chain issues, and labor shortages top of mind, it’s more important than ever to deliver happy shopping moments and revenue year-round.

Get helpful resources to optimize your holiday retail strategy now with Salesforce’s 2022 Holiday Planning Guide.

Learn how to:

  • simplify multichannel shopping journeys
  • build lifelong customer relationships
  • digitize brick-and-mortar experiences

So light an evergreen-scented candle and find out how to make every shopping moment a happy one this year. Download the 2022 Holiday Planning Guide to get trends and insights powered by Shopper360.

ROE V. WADE

My retailer, my choice

My retailer, my choice Illustration: Will Varner. Images: Benefit Cosmetics/Experiment World/e.l.f. Cosmetics

In the wake of the US Supreme Court decision that overturned Roe v. Wade on Friday, more companies vowed to assist employees who’d need to travel out of state for abortion access, following a wave that did so after a draft of the decision was leaked in May.

  • Dick’s announced on Friday that it would provide up to $4,000 in travel reimbursement to any employee, spouse, or dependent (and one support person) who lives in a state that “restricts access to abortion,” and is enrolled in its medical plan.
  • Other brands have also committed to reimbursing employees for abortion-related travel expenses, including Amazon, Patagonia, H&M, Disney, Starbucks, Levi Strauss & Co., PayPal, Yelp, Microsoft, and DoorDash.
  • Following a law severely restricting access to abortion in Texas in 2021, Salesforce said it would pay to relocate employees living in Texas who “have concerns about access to reproductive healthcare in your state,” according to a Slack message to employees obtained by CNBC.

Last month, after the draft of the Roe v. Wade decision was leaked, a Retail Brew/Harris Poll survey asked consumers how retailers’ stances on abortion would likely shape their shopping behavior.

null

More than half of Gen Z respondents (52%) said they’d be much or somewhat more likely to shop at a retailer that announced it will provide financial assistance for employees who need to travel out-of-state for abortion, followed by millennials (41%), Gen X (28%), and boomers (25%).

  • Responses also differed depending on income: 46% of those who earned $100,000+ said they’d be more likely to shop at a store that assisted employees with travel for abortion, compared to 27% of respondents who earned $50,000–$99,000, and 26% of those who earned <$50,000.

Check out our wrap-up of the survey here.AAN

        

TECH

I want it now

Future Predictions Francis Scialabba

In the most volatile of times, companies often turn to market forecasts to understand how much pain they’re in for—and how long. But a wave of machine-learning startups wants to bring more immediacy to the practice. Enter “nowcasting,” which, as Emerging Tech Brew’s Hayden Field put it, analyzes “up-to-the-minute data on everything from shipping costs to the prices of different cuts of beef.”

She recently spoke to Tony Nash, the founder and CEO of Complete Intelligence, a ML startup that specializes in “nowcasting,” about how it all works. Here’s an excerpt from her Q&A:

Can you put the idea of nowcasting in your own words—how it’s different from forecasting and the nature of what you do at Complete Intelligence?
So Complete Intelligence is a globally integrated machine learning platform for market finance and planning automation. In short, we’re a machine learning platform for time series data. And nowcasting is using data up to the immediate time period to get a quick snapshot on what the near-term future holds. You can do a nowcast weekly, daily, hourly, or minutely, and the purpose is really just to understand what’s happening in markets or in a company or whatever your outlook is right now.
And what sort of data do you use to fuel these predictions?
We use largely publicly available datasets. And we’re using billions of data items in our platform to understand how the world works…Macroeconomic data is probably the least reliable data that we use, so we use it for maybe a directional look, at best, at what’s happening. Currencies data is probably the most accurate data that we use, because currencies trade in such narrow bands. We use commodities data, from widely traded ones like oil and gold, to more obscure ones like molybdenum and some industrial metals. We’re also looking at individual equities and equity industries, and we track things like shipping times for goods—shipping times…are usually pretty good indicators of price rises.

Click here to read the full story on Emerging Tech Brew.—GT

        

TOGETHER WITH FEEDVISOR

Feedvisor

Ready for Prime time? Amazon Prime Day dates are live (July 12–13)—is your biz ready to stand out? Get prepped with Feedvisor’s 2022 Prime Day Checklist, where you’ll find advertising and pricing strategies to maximize ROI + inventory, shipping-management tasks to prep for out-of-stocks and delays, and plenty more. Snag the checklist here.

SWAPPING SKUS

Today’s top retail reads.

Think slow and hard: The tough choices fashion brands are making on inventory ahead of a possible recession. “This is one of those times where you have to be comfortable leaving a little bit on the table,” said Lively founder Michelle Cordeiro Grant. (Glossy)

At last blush: How Revlon ended up one step behind. (Financial Times)

We raise: The tech helping retailers try price hikes in real time. (Forbes)

Back-to-school cheat sheet just dropped. Plan your retail brand’s BTS approach with Back to School in 2022 from Ziff Media Group. Get the tips, insights, and stats you need for success right here.*

*This is sponsored advertising content.

WHAT ELSE IS BREWING

  • McDonald’s named new chiefs for its finance and supply-chain operations.
  • Walmart, in a partnership with Instacart, is piloting a 30-minute grocery-delivery program.
  • Juul’s FDA ban was temporarily halted by a federal appeals court.
  • H&M closed its largest flagship store in China, partially because of the fallout from the retailer’s refusal to use Chinese cotton allegedly associated with forced labor.
  • Leonardo Del Vecchio, the billionaire founder of Luxottica (now EssilorLuxottica), who purchased Ray-Ban in 1999, has died at 87.

EVENTS

Dust off your expense reports

Dust off your expense reports

Ahhhh, work travel, we’ve missed you. We love a conference, don’t you? Free food, smart people with inspiring ideas...aspirational breakfast meetings.

Which brings us to Retail Brew’s newest debut: The Sku: A Retail Brew Summit. Here’s what’s on the agenda:

  • Meeting demand and maximizing profit
  • Managing your organization across channels
  • Creating omni-channel engagement with customer journeys
  • Sustainability: Who is doing what and how?
  • Using technology to drive sales

Early-bird pricing ends soon! Register now to save your seat (and some $$). Only $499 for a limited time!

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Written by Katishi Maake, Andrew Adam Newman, and Glenda Toma

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