Technology

Getting a bigger piece of the pie with data analytics

Data visualization can feed actions to increase guest engagement and help pizza restaurants recover in the time of COVID. Amir Orad, CEO of Sisense, and Andrew Feigenson, CEO of Personica, offer insight on how pizzerias can utilize customer data in new ways.

Photo by istock.com

September 15, 2021 by Amir Orad , Andrew Feigenson

"Let's go grab a slice!" is one of those phrases that warms the hearts of not only pizza lovers but pizzeria staff as well. Unfortunately, since the outset of COVID, those are also words that have just not been said often enough. Between indoor dining restrictions, temporary (and permanent) restaurant closures, record-breaking restaurant industry layoffs, and fears of infection, something as simple as meeting friends at the local pizza joint became virtually impossible in 2020 and beyond. In fact, last year saw a 50% decrease in seated restaurant patrons compared to 2019.

Strange times indeed, and that has forced the pizza industry to think outside the box. To survive, new business strategies, or the ability to further leverage those already in place, became absolutely necessary. To come out on top in an otherwise unsavory situation, smart establishments have been putting their customer data to work in new and exciting ways. They have recognized that by slicing, dicing, and evaluating the data they already have, they hold the key ingredients to persevere and perhaps even prosper. Customer data has allowed them to set priorities, track goals, and quickly enhance processes with metrics. Not only has this helped pizzerias survive, it has also given them a competitive advantage.

Data analytics: the ultimate topping

Even so, data analytics isn't something most restaurateurs are familiar with, let alone adept at. 'Percentage ratios' and 'index scores' don't even sound like food industry terms. And, while management understands that data is important and necessary, they don't really know how to use it.

Data visualization can help, and delivers descriptive, predictive and prescriptive analytics. Descriptive analytics (i.e., seeing that a line on a chart is taller than another) allows the user to make straight-forward calculations based on what they see on the screen — after it's happened. Predictive analytics kicks descriptive analytics up a notch by providing actionable intelligence that forecasts likely outcomes. Prescriptive analytics goes further still, offering ideal actions to effect desired outcomes.

The pizza VIP

Determining a "best guest" profile via a dashboard gives management a unique perspective into the connection between marketing and return on investment. For example, if there is a significant increase or decrease in sales between 11 a.m. and 2 p.m. after sending a lunch special to e-club members, personnel can evaluate the campaign to better understand what works and what doesn't, tweaking the campaign elements for better results next time.

Customer segmentation and clustering play a significant role as well. Through visual representation organizations can determine the number of people progressing from standard customer to MVP status. They can then tie the actions customers are taking back to specific marketing efforts and assess their impact to the restaurant's bottom line. All of this can be quantified in smart reporting that is intuitive, meets your needs, and is available in real time.

Analytics serves up advantages

When the pandemic first hit and everything shut down, we all hoped things would quickly get back to normal. That didn't happen. But online ordering has been a bright spot. Incisiv projects "online driven sales will continue to grow and reach 54% of the industry by 2025, 70% higher than pre-COVID estimates. Similarly, the share of delivery is expected to grow to 23% in 2025 versus the pre-COVID forecast of 15%." All good news for the pizza sector of the restaurant industry.

Customers have an expectation that they should be able to interact with a restaurant in whichever way they choose. That might be in person — for dine-in or takeout. It might be online for pickup or delivery. Or it may be some combination. Data analytics can be the catalyst extending the personal touch patrons value, keeping them coming back again and again.

Technology

About Amir Orad

A serial entrepreneur, Amir specializes in growing big data and cybersecurity businesses, most notably at NICE Actimize where he grew the business 10x to a $200M revenue run rate, and as co-founder of Cyota which he sold to RSA Security. Amir holds an MBA from Columbia University and has been acknowledged as a Top 50 SaaS CEO.

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