While many restaurateurs have made loyalty programs a part of their marketing strategy, many are still on the fence for initiating one. Loyalty programs have proven to be extremely successful for many types of businesses such as retail, restaurant, travel, entertainment, banking, etc. However, the Food&Beverage industry can witness its benefits in a more obvious way.
Loyalty Program Benefits :
Loyalty programs are not expensive to initiate or maintain, unlike what most marketers believe. They, in actuality, boost growth and turn out to be much cheaper than getting new customers. By acquiring returning customers or those who are likely to repurchase, and by understanding the limits of those who wish to repurchase but don’t, a loyalty program can become a bridge between the two. A successful loyalty program also helps you win back upset and disappointed customers.
Another advantage of having a loyalty program is that you can turn your guests into your brand advocates. A referral system intertwined with a loyalty reward program can work wonders in acquiring new customers. It also helps you reduce your advertising and marketing costs since the customer database provides all the information needs to connect directly with them and thereby keep all the tables occupied. The CRM system can be integrated with your restaurant management software to capitalise on your loyalty program. This can make the customer experience better by you knowing their personal contact details, order history, preferences, expenditure, etc. As a result, you can segment your customers on the basis of high and low paying guests and service them accordingly.
The biggest benefit of running loyalty programs is creating long-term relationships with your customers. This personal relationship manifests itself in birthday / anniversary discounts, corporate discounts, priority reservations, express deliveries, reward system, etc. Therefore, a loyalty program witnesses a shift from a one sided communication of bombardment of invites and coupons to random customers, to an interactive relationship between your restaurant and guests you regard as valuable.
Customer Relationship Management
Customer relationship management system provides a well defined platform for all business units to interact with their customers and fulfil all their needs and at the same time reducing cost and enhancing productivity and profitability in business.
Know Your Customers
Keep track of detailed information about customers and their preferences with Customer Relationship Management console. CRM uses latest technology to maintain and synchronize customer information with their buying behaviour. Utilizing CRM reports, single location business owners can analyze each customer’s order history to better tailor their offerings according to their customer needs.
Benefits of Customer:
Customer Profile Creation:
Customer Relationship Management is the strongest and the most efficient approach in maintaining and creating relationship with customers. Manage Customer profiles and access a detailed database recording their purchase order history, personal information and preferences. This helps in reduced searching and correlating customers and to foresee customer needs effectively and increase business.
CRM contains each and every bit of details of a customer, hence it is very easy for track a customer accordingly and can be used to determine which customer can be profitable and which not.
Increase Profit Margins
Discover what items have overall high customer demand to improve single location business offerings and increase sales.
Benefits of CRM and POS Integration:
Customer Relationship Management is a strategy which is customized by an organization to manage and administrate its customers and vendors in an efficient manner for achieving excellence in business. Here following benefits.
Customer information on everything from shipping addresses to nicknames can be captured at the POS. This data can then be automatically uploaded into the CRM system, making it available to everyone from marketing to management.
Customer loyalty is the tendency of the customer to remain in business with a particular supplier and buy the products regularly. This is usually seen when a customer is very much satisfied by the supplier and re-visits the organization for business deals, or when he is tended towards re-buying a particular product or brand over times by that supplier. To continue the customer loyalty the most important aspect an organization should focus on is customer satisfaction. Hence, customer loyalty is an influencing aspect of CRM and is always crucial for business success.
The data collected at a POS terminal can help businesses and salespeople identify their most important customer groups. This can help salespeople identify customers who would benefit from loyalty discounts and programs, and those who wouldn’t.
CRM data created by POS device is automatically synchronized across all relevant departments. The information updated in real time, and available from a single CRM platform.
Without CRM and POS integration, a lot of work goes on after the sale. Things like customer data, sales reporting, and updating marketing lists are all handled manually after the fact. With CRM and POS integration, these tasks occur automatically, in real time.
In today’s commercial world, practice of dealing with existing customers and thriving business by getting more customers into loop is predominant and is mere a dilemma. By using Unavu POS system can definitely improve the situation and help in challenging the new ways of marketing and business in an efficient manner.
Deliberately or indeliberately, your restaurant collects a lot of data every day from internal (point of sale , employees, customer feedback) and external sources (customer profiles, social media). However, most restaurant owners do not realize that they are sitting on a goldmine of data, and hence, don’t use it to their advantage. This data is not just numbers, but powerful information which if identified, tracked and optimized, can help improve performance, give you a competitive edge, align products and services to customer preferences, and actually reap you profits.
Take the example of Starbucks, the world’s largest coffee shop has over 6 million registered customers in 21000 stores across 62 countries. Not only this, it has an ever growing number of drinking combinations and serves 4 billion cups annually. Just imagine the kind of data Starbucks creates! Starbucks collects data on when and what customers order. It helps it to provide them with personalized offers on their favourite coffee, and thus, stay at the top of the game.
Let’s see how you would process your customer data in a way that will convert it into actionable insights and drive revenues for your restaurant.
Optimize Your Menu
You already have a lot of data about your customers’ preferences. This means that you can see which food items are the most popular in your restaurant and which ones are almost never or hardly ordered. Basis this information, you can make sure you have enough of those food items on your busy nights. It also tells you which items do not work and should be taken off the menu and replaced with more profitable choices. These changes in the menu will help you manage your restaurant inventory better, avoid food waste and decide which menu items to promote.
UnavuApp uses the data collected by your Point of Sale to generate in-depth reports. You can easily monitor which are the most and the least ordered dish in the menu, at what time do the most sales occur, etc. Use these data to redesign the menu and special offers to attract customers. You can also gather item-wise reporting to monitor the performance of each dish in the menu through the Feedback App.
Enhance Customer Relationships
When customers walk in your restaurant, you can collect information like purchasing habits, preferences, demographics, and personal information like names, addresses, phone numbers and email addresses. You can use this information to build long lasting customer relationships with the help of your CRM software, and thus drive more sales.
• Offer Loyalty Programs
According to a recent study, it was found that 44 percent of consumers participate in loyalty/rewards programs at limited-service restaurants, and about a third have signed up for programs at one or more full-service restaurants. Eight of 10 participants said they were more likely to frequent a restaurant if they are part of its loyalty program. Hence, restaurant can build loyalty programs to create guest loyalty.
• Offer Rewards
You can send your new customer’s emails that include a discount or a generic coupon of a free appetizer on their next visit thus encouraging them to return. However, for your regular customers, you can personalize this reward by offering them a free order of their favorite appetizer on their next visit to show your appreciation for their continued patronage.
•Give Preference to Your Regular Customers
Everyone knows the Pareto principle (the 80/20 rule). So when applied to your restaurant business, it means that 80 percent of your restaurant’s sales come from 20 percent of your customers. Now, though you would want to focus your attention on all your customers, you would still want to give preference to your repeat and loyal customers. That’s a wise business decision and something that your customer data would help you make. So, on your busy days, when all your tables are going to be booked, invite your loyal customers to book their tables first. Incentivize them to celebrate their special occasions (by emailing or calling them in advance) at your venue.
• Encourage Off-hour Visits
Using the data on your repeat customers, you can encourage them to visit the restaurant or lounge during the off hours and offer them discounts only during that time period. It will help you fill tables and keep your regular patrons happy.
• Surprise with Spontaneous Rewards
Sending guests an email with a discount shows your appreciation. However, you can make it count more if you offer spontaneous rewards to your unsuspecting guests. For a first time guest (as you can find out from the history of your CRM system), offer an incentive in the form of a 10% discount or a free dessert to tempt them to make a second visit.
You can also monitor your restaurant business from anytime, anywhere through UnavuApp Mobile Reporting Feature.