Customer insight makes the restaurant world go 'round because it gives pizza brands a critical competitive advantage. And while many brand leaders may think they have all the right answers to the customer insight game, they probably don't if they failed to start with all the right questions.
December 19, 2018 by Robert Whitehead — Director Retail & Hospitality Technology, Softtek Integrations
Customer insight makes the restaurant world go 'round. Critical competitive advantage lies in the ability to connect with guests and deliver individualized experiences that resonate, build brand loyalty and drive repeat business.
Gaining that insight requires getting to know the customer, which, in turn, requires capturing and analyzing data around preferences and dining habits. The necessary criteria are relatively basic, but comprehensive. You need to know:
Restaurants have a couple of ways to gather this information. The most obvious approach is to ask for feedback. We've all seen guest surveys attached to menus, or as follow-up texts or emails to online orders, taking the customer's temperature on how they liked the food, the service and what could have been improved upon.
The problem is that such requests are typically ignored, as well as often being perceived as annoying. And because responses vary in terms of detail, context and objectivity, the ability to quantitatively analyze data and gain meaningful insight is limited.
The alternative to old-fashioned customer surveys is to capture guest contact and payment information digitally at the point of sale. This approach requires an opt-in action by the guest - either downloading an app or providing information to join a frequent buyer club.
Once established, this connection provides a critical conduit of ongoing, detailed and accurate data on customer activity and buying habits. By collecting, analyzing and acting on this data, restaurants can significantly enhance their ability to refine the guest experience.
By linking food orders over time to specific customers, restaurateurs can identify patterns related to dining frequency and preferences. Based on those patterns, the restaurant can create special offers and premiums tailored to the customer profile.
If, for example, Peter and Joanne take their two kids out every Thursday for burgers and ice cream, the restaurant can proactively suggest new topping combinations, or present the kids with a free sundae of their choice. Rather than a generic "buy one get one free" offer, the restaurant can personalize its promotion to resonate with the customer and make a lasting impression that keeps the customer coming back. For many brands, even a slight bump in repeat business can mean the difference between losing money and profitability.
Connecting customer identity to order information is the critical link needed to deliver a truly unique experience and thereby gain an important competitive edge. Today, however, most restaurants fail to capture customer data. Campaigns designed to increase use of mobile apps, for example, often lack incentives or visibility. And when these half-hearted campaigns fail, executives conclude that a digital strategy isn't "right" for their brand.
What's behind this lack of conviction? One issue is the "Big Brother" factor — concern that customers will view a restaurant's attempts to capture information on their dining habits and personal preferences as intrusive. Given headlines around social media hacks and identity theft and the growing pervasiveness of "always listening" AI devices, this concern is warranted. But while perhaps objectionable, the notion of capturing and using customer data is becoming an increasingly entrenched reality.
To seize the opportunity, therefore, restaurants need to be more positive, proactive and strategic in their pursuit of guest data. Gamification techniques can make the prospect of sharing information less onerous and more appealing for the customer.
For instance, "Downloading the app" can yield a reward, rather than being just an obligatory prerequisite to placing an order. Promotions to garner feedback on menus and service can be engaging and fun, rather than tedious "on a scale of 1-to-10" questionnaires. In other words, the opt-in, rather than an obligation to be fulfilled, should be positioned as a positive experience and a reward in, and of itself.
Change is hard and can be painful. This truism certainly applies to the restaurant business. And while implementing digital technology to redefine guest engagement certainly involves risks, the opportunities can't be denied.
Restaurants struggling to survive in a rapidly evolving competitive climate need to adapt and leverage these tools to connect with diners and make them feel special. Capturing contact information is a cornerstone of any customer engagement strategy. And asking for that information is the first step of the journey.
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