As I’m sure you may know, repeat customers are vital to the success of a restaurant. However, if you need a little convincing, check out these two stats:
“Sixty-one percent of SMBs report that more than half of their revenue comes from repeat customers, rather than new business.” [BIAKelsey]
“It can cost 5 times more to acquire new customers than it does to keep current ones." [The National Law Review]
“It can cost 5 times more to acquire new customers than it does to keep current ones." [The National Law Review]
Those statistics alone provide evidence that customer retention is where restaurants should be placing their focus and this article will show you how POS analytics can help you do just that.
1. Make Your Guests Feel Important
People will always remember how you made them feel and people love to feel special. Because of this, it is very important for a restaurant to remember facts about their customers that will eventually lead to increased interactions with the company. Some of these factors include: quantity of visits, birthdays and anniversaries, frequency of items ordered, etc. Being aware of this data can enable restaurants a multitude of options for making their customers feel special.
With this data restaurants are able to easily segment and target customers, and repeat business can be driven through a number of ways; this could be tailoring promotions to specific customers through email, phone, mail, etc., offering customers their favorite items on birthdays, or even surprising customers with a free meal on their 'nth visit! The possibilities are endless and can be most easily explored with detailed analytics through your POS system.
With this data restaurants are able to easily segment and target customers, and repeat business can be driven through a number of ways; this could be tailoring promotions to specific customers through email, phone, mail, etc., offering customers their favorite items on birthdays, or even surprising customers with a free meal on their 'nth visit! The possibilities are endless and can be most easily explored with detailed analytics through your POS system.
2. Notice Patterns and Exploit Them
Although it is very important to understand and note what and when your guests are purchasing, it can be argued that even more importance lies in the why! Once a restaurant is able to distinguish why customers are spending more on certain items at certain times, management will then be able to formulate a strategy that concentrates efforts towards said findings.
Maybe you notice that your most profitable or most loyal customers—in most cases these guests are the same—order from a specific area of the menu with your best items, while those who spend less don't. You can then strategize a way to direct these lower spending customers towards the area of the menu that will most likely peak their desire to return to your restaurant.
Managers can be much more confident in making these business decisions with valid, and verifiable data from their POS analytics. This data can enable your restaurant to make moves based on real analysis instead of gut feeling or assumptions.
Maybe you notice that your most profitable or most loyal customers—in most cases these guests are the same—order from a specific area of the menu with your best items, while those who spend less don't. You can then strategize a way to direct these lower spending customers towards the area of the menu that will most likely peak their desire to return to your restaurant.
Managers can be much more confident in making these business decisions with valid, and verifiable data from their POS analytics. This data can enable your restaurant to make moves based on real analysis instead of gut feeling or assumptions.
​3. Manage Costs That Will Trickle Down
Many times, the cost that the end customer pays for their meal is a combination of labor, overhead, product management, food costs, etc. And because no business is perfect, there is always room for improvement in one of these areas of cost. Turning an analytical focus inward and paying attention to all levels of spending will positively affect the savings a restaurant can make.
When a restaurant saves money, there is more space in the budget to positively benefit the customer; this could include more specials on favorite items, renovations to enhance the customer experience, or even events to show customer appreciation. All of these things, plus more, will excite customers and develop a profitable relationship between guest and restaurant that will lead to return visits.
When a restaurant saves money, there is more space in the budget to positively benefit the customer; this could include more specials on favorite items, renovations to enhance the customer experience, or even events to show customer appreciation. All of these things, plus more, will excite customers and develop a profitable relationship between guest and restaurant that will lead to return visits.
Conclusion
Repeat customers are the most profitable customers for a restaurant. To benefit from this, restaurants should use real analytics and data to identify these customers and target them. A good POS system collects data on the many areas previously mentioned—productivity, food costs, sales info, etc.—and comprises the data into easy-to-read reports so that managerial decisions can be made. Don’t get stuck making assumptions on what your guests want and why. Instead, enable maximum success for your restaurant and employ a POS system that will work for you.
Ordyx is a state-of-the-art point of sale system that provides complete live reporting along with many other features so that your manager are in the best position to make the best business decisions for your restaurant. Request a free demo today to learn how restaurants all over the country are benefiting from a POS system that works for them!
About the Author: Coleman Howard
Coleman Howard is a Marketing Manager for Ordyx POS. An MBA Graduate from Florida Atlantic University, he has a passion for studying, innovating, and presenting new ideas in the industry.
Coleman Howard is a Marketing Manager for Ordyx POS. An MBA Graduate from Florida Atlantic University, he has a passion for studying, innovating, and presenting new ideas in the industry.
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