NEW YORK — It’s essential for companies to keep a finger on the pulse of their customers as they expand, Wouleta Ayele, CTO of Sweetgreen, said during a session at National Retail Federation’s Big Show conference on Monday.
“As you continue to grow, what a lot of companies experience is losing the connection and the intimacy that they have with customers — both in understanding, but also in operation and execution,” Ayele said.
Sweetgreen is sharpening its focus on its customers to maintain its understanding of their needs, according to Ayele. The goal is to ensure customers can have a great experience whether they order online or visit a restaurant directly.
Sweetgreen takes a results-oriented strategy with its CX upgrades, including a loyalty revamp expected to roll out this year. The company starts by defining the ideal customer experience and then uses data from a variety of sources to achieve that result.
Planned CX improvements could help Sweetgreen maintain its growth trajectory. Total revenue was up 13% year over year in Q3 2024, while same-store sales were up 6% year over year, according to a November 2024 earnings report. The company expects to open between 24 and 26 new locations by the end of fiscal year 2024.
Starting with the desired goal
Sweetgreen’s approach to CX starts by defining a “to-be” state — the experience the company is trying to create. From there, the team works backwards to identify the necessary changes and investments to create that outcome.
While the concept sounds simple, it can be difficult to actually define that desired outcome, according to Ayele. However, it becomes even harder to find the right solutions, from both technology and business outcome perspectives, if the endpoint isn’t set at the beginning.
“It's not just a digital presence. It's not just a digital ecosystem,” Ayele said. “Our customers today expect the same experience at every touchpoint. So when we do define that future state, it's important that we actually envision what we want all touchpoints to be and architect it.”
It’s not enough to change an experience for the better and consider the job done, according to Ayele. Sweetgreen works to nurture its investments and continually deliver improvements.
Identifying a to-be state provides leaders with a goal to measure against. Starting with a result in mind can help companies determine why it isn’t being met if the initial attempt doesn’t produce the expected results.
Sweetgreen also tracks its performance through a deep listening program that doesn’t just track what customers say they need but what they expect, according to Ayele. This includes multiple sources, from direct customer feedback to transaction data.
“Holistic data, that 360 view of our customers, is crucial,” Ayele said. “When we don't have that, we're going to have a fragmented experience.”
Improving loyalty through data
Sweetgreen’s data platform is at the heart of its experience efforts. The ability to combine data from the point of sale, app and direct surveys can help ensure the experience is consistent no matter how customers choose to dine.
“That seamless experience and having that relevant omnichannel capability is extremely important, but when it's filled with data, it just takes it to the next level,” Ayele said. “It's not just about the current state. You're able to predict what you should focus on in the future.”
Data is a primary driver for Sweetgreen’s loyalty program, Sweetpass. The company is planning to redesign the program this year to reduce complexity, and leaders are “very cautious” about how to enhance it, according to Ayele.
“Loyalty, to us, is going to be that really intimate connection that we can have with our customers, and we're continuing to evolve it,” Ayele said. “We've learned a lot from the last few years.”
Sweetpass is part of the restaurant chain’s omnichannel experience, and the company is taking steps to ensure the loyalty experience is the same whether customers engage in-store or online.
Data will also help Sweetpass power personalized interactions by helping the restaurant better understand its customers, according to Ayele. The goal is to not just understand their preferences, but meet their expectations for the brand through transactions and communication.
“There's high expectation for retailers and restaurants in general to really focus on that customer experience, to retain our customers and get them excited,” Ayele said.
