A 2016 survey by the National Restaurant Association says four out of five restaurant owners believe technology will be the secret sauce to reviving their business fortune.
Your customer is uncompromising, is well informed and is equipped to glorify or ruin your brand’s reputation. Well, hoteliers and restaurants have an ace up their sleeves: restaurant analytics.
One of the world’s most recognized industries is overhauling itself for a future that is brighter and will become more targeted to niche customer groups, thanks to decisions being taken on cold, hard data insights like menu analytics for restaurants.
Let’s see what customer metrics will help accelerate your growth:
Guest Activity Metrics
An increasingly digital world automatically lends itself to an increasing digital footprint, left by your current and potential customers.
There are vast reams of guest behavior data coming in from a plethora of sources, and the not-so-obvious ones include those from restaurant aggregators like Yelp or Zomato, couponing portal interactions, and more.
You could be mistaken to think that holistic tracking of your guests begins and ends between the time your customer entered and exited the door.
Analytics for restaurants will help you track what she’s saying about your food on Instagram, how she opines about the local food served by you since she’s a visitor, and more.
Customer Demographic Metrics
Look at what Groucho’s Deli is doing. By combining loyalty and order convenience digitally, the company now has insight into a registered user’s purchase history, visit patterns and demographics, making it easier to target segmented groups.
Customers are wanting customized services, but at the end of the day, your analytical journey towards faster growth will be helped by segmenting all those users based on demographic parameters – age brackets, gender, geographic origin or residence, influences and more.
The power of restaurant analytics comes to the fore here, because it crunches data to provide understandable insights. Then, owners or decision makers can create compelling marketing campaigns around these insights.
Average Order Value Metrics
Over a period of time, although your PoS systemsc might reveal the bestselling items or overall order value over the previous quarter, restaurant analytics will help you dig deeper to uncover how this could be channeled to understand the purchasing patterns of your visitors.
Did the order values increase during a recent festival that brought family members back from overseas, or did it change after a recent change in the menu presentation?
A restaurant tech survey done by Fortune reveals the orders placed via Android or iOS devices (6.6%) have crossed the orders placed over the phone (5%).
An analytics solution customized for individual business needs will help drive your order value up.
Order Patterns Across Time Period Metrics
While traditional menu items particular to the region, or global hits that aren’t expected to die out anytime soon are evergreen menu items, they are evolving as people try ways to improve it.
Or people could now be choosing different combinations on the menu, something unprecedented till date. Change will be constant as people travel more, are exposed to more culinary media, and more.
The age of ordering via social media or the food platform like Yelp gives you even more ammunition with the power of tools like menu analytics for restaurants, to analyze order patterns in comparison with purchases done directly in your restaurant, or through your website.
Staff Performance Metrics
You must consider your staff as important as your customers. Having a passionate and future-ready workforce is the key to making the restaurant of your dreams a reality.
Fortunately, there are multiple staff analytics metrics to measure, record and enhance their performance, and inculcate a healthy competitive spirit, as they become proponents to customer delight.
In 2016, the restaurant employment market was the second-largest private employer in the US, and this trend is seen across other major countries.
Restaurant analytics for staff analysis will be the silver bullet to improving staff efficiencies and ensure faster revenue growth.
Customer Acquisitions Cost Metrics
Putting a robust acquisition plan to start increasing the footfalls to your physical or online store(s) is no easy feat. Statistics say it costs 7 times more to acquire a customer than to retain an existing one.
This ratio is across industries, and hence becomes a key metric. Having a single dashboard interface where all the numbers and results from recent marketing campaigns are pooled is where the action begins.
Begin to identify successful campaigns, demographics with low engagement, how your competitors are acquiring customers, and more.
Find out the real reason behind prospects converting with your business, what they find appealing, and what redundant costs to eliminate.
Marketing Promotion Metrics
You could be having multiple campaigns running, targeted to different audiences, but connecting the campaign tracking panels with your customer analytics dashboard is a great way for both systems to learn from each other and ultimately benefit the customer and you.
Scott Shaw, the chief innovation officer at Fishbowl, used an analytics for restaurants automation tool for a 200-unit restaurant chain to suggest creating the next best offer, conducting real-time tracking of promotions and more.
The chain saw $5 million in incremental sales, something tantamount to setting up two new stores in that locality.
Retention & Churn Metrics (Segmenting New & Repeat Customers)
Let’s face it, competing in today’s uncertain landscape is not an easy game, and restaurants or food chains that are doing killer sales have made success their unwavering focus.
Loyalty today is fractured, but successful loyalty programs around the world that are tied in with your restaurant analytics separate your true patrons from the rest.
Taking in feedback through your staff via tools like staff analytics, comparing the earn and burn ratios of your loyalty programs are all key to fine-tuning your programs to make your fans keep coming back for more. Set this as the benchmark to attract even more guests to your restaurant.
Net Promoter Score Metrics
The backbone to restaurant reviews is the net promoter score. This score, usually between the range of 1 to 10, is to enquire customer’s willingness to suggest someone else to visit.
You might have the best ambience, the best menu offerings, but you fail if your average customer ratings online or on social media are below average. The feedback aspect is usually kept at the end of the experience chain, but we think it must be right at the beginning.
That’s where the power of big data in restaurant analytics brings out insights that would have never surfaced. Get started in moving up your NPS score.
Customer Lifetime Value Metrics
In the rat race, it is but human to default towards achieving the short-term, while losing out on the bigger picture.
Customers are looking for long-term relationships, while your tunnel vision might be just for the next quarterly sales profit target.
Data analytics for restaurants shows you patterns of micro and macro performance of your restaurant, helping you gear up to play the long game of achieving ultimate customer lifetime value. Start increasing the pool of customers who will patronize you their entire life.
The path to reach the top is not easy, but with the power of big data analytics, new technologies like machine learning & Internet of Things that are being embedded in restaurant analytics, the race is not that tough as well.
You need a comprehensive technology architecture that combines elements like data analytics for restaurants and customer metrics to supplement your existing efforts, and see your growth curve steepen.