30
CLH Digital
Issue 69
Hosptality Technology
Why Boosting Customer Loyalty Is A Restaurants’ Secret Weapon By Tim Glomb, VP of content and data for Cheetah Digital (www.cheetahdigital.com) FEEL LIKE “REGULARS” The study shows that 73% of restaurant-goers want a personalised experience in the form of recommendations. They want to receive offerings or product recommendations based on their past purchases. This requires restaurant brands to understand the unique desires of each consumer. Are consumers’ expectations reasonable? Think of it this way: the personalised experience, unique offerings, and informed recommendations are all elements a customer would experience if they frequented a local restaurant for decades. The restaurant staff would know them and treat them like family; servers would provide recommendations based on the other meals they’ve consistently ordered and enjoyed—they would be offered the unique benefits of being a “regular.”
The coronavirus pandemic has changed how people eat. In particular, the pandemic changed how consumers choose the restaurants they want to dine in. With rising food prices and the overwhelming fear of economic inflation as the world recovers from the pandemic, restaurant owners are concerned about reaching their customers. For those establishments that survived the coronavirus pandemic, even after months of closures and reduced dine-in capacity, the road to recovery looks more daunting in this new world of dining. Consumers are choosing the restaurants they prefer based upon three key factors, according to our recent research. Restaurant goers want a personalised experience, loyalty-based programs that keep them coming back, and clear communication from brand to consumer.
STUDIES SHOW RESTAURANT-GOERS WANT TO
Consumers want to feel like they are “regulars” at the restaurants they frequent. Unfortunately, large-scale restaurant brands struggle to offer this experience to their customers—even if those customers regularly visit the restaurant. According to the study, 64% of consumers are willing to pay more to dine at a restaurant they trust. But many restaurants are sorely lacking in the trust department with 24% of consumers saying they are not loyal to a restaurant brand simply because the company did not attempt to cultivate that loyalty. If restaurants hope to succeed in a post-pandemic world, loyalty is the key.
CULTIVATING LOYALTY THROUGH ZERO-PARTY DATA The only way restaurants can cultivate loyalty is if they know their customers. This is significantly more challenging for large-scale restaurants that cannot have the face-to-face interactions with their customers that small businesses offer every day. That said, strategic marketing efforts
make it possible for restaurant brands to reach customers, make them feel like “regulars”, and cultivate loyalty in the process. The best news restaurants could hope for in this process is that customers are overwhelmingly favorable to communication from their favorite restaurant brands. In fact, 51% of guests have downloaded a restaurant’s app in order to communicate with the brand more directly. This communication is vital, but it’s more than simple notifications about new items or restaurant information. To make the most of direct communication with consumers, brands need to gather data. The study also reveals that more than 50% of customers are willing to share their data in exchange for better service. The crucial step for restaurants, then, is that they must gather the right data without violating the consumer’s trust. This is where first-party data is essential. Different from background data gathering (usually called “third-party” data), zero-party data is directly communicated between the consumer and the brand. It’s the difference between introducing yourself directly to learn a stranger’s name, or asking a nearby friend to tell you the stranger’s name. Zero-party data is essential to cultivating loyalty because it answers the critical question: “What exactly does the customer want?” It helps brands determine the products, services, or recommendations that the customer wants first hand. Zero-party data also makes the customer feel heard because their information is relayed directly to the brand of their own accord. Restaurant brands must optimise consumer data to make personalised recommendations and offerings based on each customer’s unique preferences. This is how brands will generate loyalty and make their customers feel like “regulars”. Consumers are more willing to spend their money at restaurants they know and trust. Loyalty is the key component of restaurant success in a post-pandemic world.
How the Foodhub EPOS System Can Help Local Businesses Flourish Leeds based Archers Sweets sells everything from traditional pick ‘n’ mix through to American candy, and has seen huge success since the opening of its first bricks-and-mortar shop in 2018. Owner, Natasha Archer, like many other business owners, found that the pandemic heavily impacted her business model, as when national lockdown hit, her delivery orders soared.
Foodhub is the only takeaway delivery provider that operates with a 0% commission model. This is unique compared to other EPOS providers who charge up to 10% per transaction. Instead, Foodhub charges their partners a set monthly fee, making for a much more stable and manageable cost.
Although delighted with the immediate jump in telephone order volume, Archer and her team started to become increasingly overwhelmed with delivery orders, leaving them little time to focus on the running of the shop. Archer needed to find a solution quickly that didn’t mean handing over her hard-earned profits in commission. That’s when she discovered leading POS platform, Foodhub. Joining Foodhub meant they had access to a world class EPOS system that would allow them to easily and effectively manage order volume. Instead of manually organising each customer order, the system allowed them to fully digitise and streamline the process, affording staff less stress and more time to spend with customers in the shop. 24/7 support means help is always at hand should they require assistance with the system.
Visit foodhub.co.uk/become-a-partner to find out how your restaurant can benefit from a leading EPOS system, whilst saving money each month compared to other platforms.
Not only did Archer find that she was saving money and her team were less pressured, but the new system led to increased customer acquisition, as many local people appreciated being able to use the website to check the sweet treats available and then place an order ready to be picked up or delivered to the door. Natasha Archer, owner of Archers Sweets, said: “Signing up to Foodhub has massively helped the business. We’ve gained lots more customers since imple-
menting the EPOS system and the staff are under much less pressure. Joining Foodhub is the best thing we ever did; it’s made our lives so much easier.” Ardian Mula, Foodhub’s CEO said: “We are delighted to have Archers Sweets onboard as one of our partners and thrilled at the level of success they have seen so far simply by using our order management system. In addition, Foodhub is the only major food ordering app that won’t charge a commission per order. Instead, our commission-free subscription model means they gain full access to our leading EPOS system for a monthly fixed cost, meaning our partners save significantly every month when compared to other rival platforms.” “As part of our EPOS offering, we provide a complete turn-key solution to get food delivery businesses online. Our clients receive their own e-commerce platform, order management system and access to thousands of Foodhub customers. It can really help businesses such as Archers Sweets evolve their ecommerce offering and allow them to be agile at a time when they need to most, alongside the cost saving benefits.” Foodhub is encouraging independent business owners to take advantage of the current appetite for ecommerce and delivery orders and sign up to the site. With Foodhub the full order value goes direct to the business as they do not charge a commission on orders. This is unique compared to other EPOS providers who charge up to 10% per transaction. Instead, Foodhub charge their partners a set monthly fee to trade with them, making for a much more stable and manageable cost. Visit www.foodhub.co.uk/become-a-partner for details.