Consumer behaviour trends identified in recent CGA research exploring the landscape of the post-pandemic market suggest that the cost of living crisis is impacting footfall in venues with the percentage of consumers opting to eat and drink out weekly decreasing year on year. However, with average monthly spend in out-of-home venues increasing you can deduce that encouraging return visits is going to be an easier task than generating new customers.
Further to this, the survey reveals that consumers still look to eating and drinking out as an affordable luxury during tough times with the majority planning to spend more than they would usually on out-of-home dining and drinking over the next 12 months.
Why are repeat customers important to a restaurant?
Generating repeat custom 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.
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 check box to collect customer email addresses. This could be on your website, during the reservation process, while using an 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 from 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 venue, then increase frequency by taking your brand to them and promoting your click & 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.
Building customer loyalty and retention
Developing ongoing relationships with your customers is the most effective way to drive profitability and growth for your business. Customers who have visited you more than once are more likely to spread the word and tell their friends and family about you.
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.
Learn how to make the most of your customer database and send highly targeted campaigns that are more likely to convert into bookings and visits by reading our comprehensive downloadable guide on CRM strategies to drive ROI through segmentation and personalisation below.
Data source:
CGA Brandtrack
CGA GB REACH 2022