Why are repeat customers important to a restaurant?
Generating repeat customers from your existing customer base is important in generating a regular revenue stream and increasing profitability. It costs five times as much to attract a new customer than to keep an existing one, so repeat customers is the most cost-effective strategy for restaurants.
As important as creating customer loyalty is, many restaurants struggle and find as much as 70% of their existing customer base may have only visited their venue once. If you were able to drive one extra visit from just 10% of your existing customer database, what impact would that have on your business?
How do restaurants get repeat customers?
The first step in making a customer want to return to your restaurant is to offer a great experience on their first visit. You will have more repeat customers if you ensure you offer excellent service, a smooth booking and payment service, consistent quality in your food and drink and personable and well-trained staff.
Once you have these basics nailed, you can look at your marketing strategy to turn your first-time visitors into loyal, repeat customers. Many restaurant operators are utilising hospitality customer relationship management (CRM) software to dig into their existing customer data and run tailored campaigns to drive customer loyalty.
10 tips to increase repeat customers
Here are some of our top tips on how you can help drive repeat visits via your CRM:
1. Collect customer contact details
In order to entice your customers back you need to be able to communicate with them. Make sure that you include a simple but prominent marketing sign-up form or opt-in checkbox to collect customer email addresses. This could be on your website, during the reservation process, while using the order and pay app or click & collect while logging onto your WiFi or via QR codes on in-store menus. Make sure you are GDPR compliant and give a compelling reason to sign up, such as offering a voucher or discount after signing up. And don’t forget to ask for the day and month of their birthday too for further promotional content.
2. Target lapsed visitors
Ensure you have an automated lapsed visitor email program in place. If a customer hasn’t visited in a while or you can see their normal visit pattern has decreased send them an incentive to return.
3. Send a post-visit email
Strike whilst the iron is hot and send a post-visit email encouraging a return visit. They’ve just had a great time at your venue, so keep the momentum going by offering a timed incentive or reason to visit/book again.
4. Set up a birthday email campaign
Entice customers to celebrate their birthday with you by setting up automated birthday emails offering a special treat or experience. This can be a simple automated email sent x days/weeks before their birthday.
5. Promote different days of the week
Segment your customers by day of visit and day part. Send them a promotion or reason that entices them to visit at an alternative time: “Did you know we did Sunday Brunch?” or offer mid-week fixed-price deals such as ‘Taco Tuesday’ or ‘Curry Night’ where customers can offer a fixed menu at a special price.
6. Personalise offers
Personalise customer communication that helps the reader resonate with your brand and want to make a repeat visit e.g. if you know their favourite cocktail, incentivise them back with a free or discounted cocktail on their next visit.
7. Use a multi-channel approach
If you can’t engage with your customers via email, target them via social media with some compelling, irresistible and Instagramable images that will entice them back to your venue. Make sure you include a ‘Book Now’ link to capitalise on immediate interest.
8. Use previous special occasions
Review your booking data and target those who have ever visited for a special occasion. They think you were special enough to visit before so encourage them to celebrate with you again.
9. Dine-at-home options
If your customers have only visited you in the venue, then increase frequency by taking your brand to them and promoting your click-and-collect and delivery options.
10. Send a post-visit survey
Gather customer feedback to ensure you understand how to encourage them back and how you can improve your offer, service and venue. You can gather valuable insights about what your customers love and what they would change in your venue.
Ready to build lasting relationships?
In this article, we've explored the importance of customer retention, highlighting that developing ongoing relationships with your customers is the most effective way to drive profitability and growth for your business.
Your customers have a lot of choices when it comes to selecting a venue, so it’s important to ensure your marketing communications are relevant. Sending mass communications to your entire database without considering relevancy is likely to lead to unsubscribes from your mailing list as well as turning them off a return visit.
Our hospitality CRM, Access Acteol, is designed specifically for the hospitality industry, providing you with the tools to capture valuable customer data, track their preferences, and personalise your communication and offers. With Acteol, you can automate many of the retention strategies discussed in this article, making it easier than ever to build strong, lasting relationships with your customers.
Find out more about our loyalty and rewards solution, as part of our CRM
