In the final blog of our Feature Focus series, we look at setting up your subscription and how technology can help, we are leading up to our “Leveraging Subscription-Based Offers: A Recipe for Restaurant Success” webinar on September 19th with our partners, Paytronix.
In this blog post, we’ll explore the essential steps to set up your subscription program for success and how technology, like the services offered by Paytronix, can be your guiding star in this journey.
Subscription programs have become the lifeblood of many businesses today, offering a reliable source of revenue and fostering customer loyalty. However, the road to launching a successful subscription program is not without its challenges. The price-fixed nature of subscription offerings demands careful planning and strategic execution.
Step 1: Financial Modelling
The foundation of any subscription program lies in understanding your market and pricing it right. Financial modelling is the initial crucial step. You need to determine the price range, select the products or services to include, and set limits based on a comprehensive analysis of current purchase patterns. This data-driven approach ensures that your pricing is not only competitive but also profitable.
Step 2: Consumer Survey
To fine-tune your subscription program, gather insights directly from your target audience. Conducting surveys among potential customers can help you gauge their interest and preferences. Segment the survey to target specific audiences and experiment with different price points. This information is invaluable for optimising your program’s appeal.
Step 3: Test Market Program
Before a nationwide rollout, consider a beta program in select test markets. This allows you to iron out any issues, refine your strategy, and assess the program’s viability. Testing locally provides the freedom to experiment and adapt, ensuring a smoother national launch.
Turning to Technology with Paytronix
Managing a subscription program efficiently and making timely modifications is where technology plays a pivotal role. Paytronix offers a comprehensive suite of tools tailored to subscription management:
Customer Targeting: Identify and reach out to potential subscribers through personalised campaigns, encouraging them to sign up.
Streamlined Signup Process: Reduce cart abandonment with a user-friendly and hassle-free signup process.
Secure Payment Acceptance: Ensure secure and convenient credit card payment processing for subscribers.
Recurring Payment Tracking: Keep tabs on recurring payments and automate messaging for reminders and issue resolution.
Reward Management: Implement a rewards system to incentivise loyalty among subscribers.
Renewal Processing: Automate renewal reminders and marketing messages to boost subscription renewals.
Automated Email Triggers: Send out relevant emails triggered by subscription-related actions at the point of sale or by members.
Analytics: Gain insights into the impact and return on investment of your subscription program through advanced analytics.
In summary, a subscription program’s success hinges on meticulous planning, customer insights, and efficient technology. Paytronix’s subscription management tools can simplify your journey, ensuring a smooth and lucrative subscription program that benefits both your business and your customers. Remember, a seamless system not only makes your life easier but also enhances the subscriber experience, leading to long-term success. Embrace technology, and set yourself up for subscription triumph!
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
If you haven’t downloaded our 2023 subscription report, then the next 500 words should drive you to hitting that link at the bottom of this page. Our “Feature Focus” series continues as we look into how you can customise your subscription to your restaurants needs, we are leading up to our “Leveraging Subscription-Based Offers: A Recipe for Restaurant Success” webinar on September 19th with our partners, Paytronix.
As restaurant owners, you understand that satisfying your guests goes beyond serving delicious meals. It’s about crafting an experience that resonates, fosters loyalty, and drives revenue. Enter the world of tailored subscription models—a strategic approach that’s redefining customer engagement and transforming the restaurant industry.
Elevating the Experience with Member Perks
Imagine your customers walking into your establishment and feeling like VIPs, part of an exclusive culinary club. That’s the power of member perks. By offering occasional, unadvertised specials exclusively for your subscription members, you’re not just enticing them; you’re making them feel valued. Think of the allure of surprise 2-for-1 drink deals during specific months, akin to the successful Matty O’Reilly dining membership. It’s all about providing that extra touch that keeps them coming back for more.
Exclusivity and Waiting Lists: A Time-Tested Strategy
The concept of limited availability has driven purchasing decisions for centuries. It’s no different in the realm of restaurant subscriptions. While offering free coffee memberships might not make sense for this strategy, consider applying it to higher-ticket items like entrées and meals. By strategically limiting memberships and highlighting that only a few slots are left, you’re igniting a sense of urgency that can sway even the most hesitant customers.
Harnessing the Referral Power
Word of mouth is a potent force, and referral bonuses tap directly into this phenomenon. Rewarding your subscribers for bringing friends on board is a time-tested approach that resonates well with subscription models. Take a leaf out of Panera’s book—offering three months of free coffee subscription for two friend sign-ups. Not only does this expand your subscriber base, but it also deepens the sense of community around your restaurant.
Overcoming Commitment Hurdles with Free Intro Periods
Commitment can be daunting, especially in a subscription scenario. This is where the concept of a free introductory period shines. Imagine inviting potential subscribers to experience the perks of your subscription for a brief window, no strings attached. The Panera coffee program’s initial free period is a great example. This strategy alleviates concerns, allowing members to ease into the program before transitioning to automatic billing.
The Power of Free Shipping
The geographical boundaries of your restaurant need not limit your reach. With the allure of free shipping, you can expand your subscriber base exponentially. Katz Deli’s monthly box of New York favourites is a prime example—showcasing adaptability by changing box contents based on availability. On a local scale, consider integrating faster delivery options for subscribers, enhancing convenience and satisfaction.
Potential for Loyalty and Revenue
The bottom line is crystal clear: subscription models possess the potential to revolutionise customer loyalty and revenue generation. By customising your offerings, embracing exclusivity, leveraging referrals, easing commitment concerns, and expanding reach, you’re not just creating transactions—you’re building lasting relationships.
If you are still unsure of how subscription can work in your business, join us on September 19th for our “Leveraging Subscription-Based Offers: A Recipe for Restaurant Success” Webinar with our partners, Paytronix, where we will show you how to onboard subscription into your business that guarantees higher revenues and customer retention, you can download our latest insight below.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
On the 19th September we are hosting our first “Feature Focus” webinar to showcase the benefits of building subscriptions into your restaurant business.
Over the next few weeks we are going to entice you with some excerpts from our latest subscription report.
The report covers all of the relevant information you need to add subscriptions to your business such as, the Next Level of Loyalty, Top Advantages of Subscriptions, Launching into Subscriptions, Models to Consider, Tailored to Your Needs, Setting up for Success and turning to tech.
This week we are focusing on your launch into subscriptions.
Subscription Services are dominating most if not of all of our day to day habits: The trend of subscription-based services is still on the rise in various industries, from entertainment (streaming services like Netflix, Spotify, Disney+) to software (Adobe Creative Cloud), food (meal kit subscriptions), and even clothing (rental subscriptions). By 2024, it’s possible that even more industries have embraced the subscription model, offering convenience and customisation to consumers.
There’s good reason efforts like these are being launched — they offer a very quick surge in revenue. For instance, Panera’s program garnered over 100,000 signups the first day alone, and then saw between 30,000 and 50,000 signups per day for the first two months. Those subscribers paid off too, leading to a staggering 70% increase in food attachment.
In the below example, Panera Bread shows the impact of a well thought out subscription. Panera Bread is an American chain store of bakery-café fast casual restaurants with over 2,000 locations, all of which are in the United States and Canada.
There are some great examples below of the flexibility you can offer through your subscriptions,
Additional Purchasing: In many cases, subscriptions are a loss leader, but they can still yield major gains. Offering meals and products at deep discounts gets customers in the door, even if that’s a virtual door, and paying full price for other items. It also allows for significant upselling opportunities since customers can feel as if they have “extra money” they saved as a result of discounts, leading to higher spend than they would have shown otherwise.
Repeat Customers: If someone has a subscription to a specific restaurant, store, or service, they will view that option as a default for their food and shopping needs. Since they’ve prepaid, customers want to gain maximum value from their investment and will “zero out” their monthly subscription or meal package — making additional purchases along the way — which drives loyalty higher.
For more examples of the flexibility and the revenue growth that subscription can offer you then click below to download our Subscription report.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
Continuing from our leveraging subscriptions blog last week, we now look at the types of subscriptions you should apply to your business and explain how to segment the data to cement success and grow your revenue.
From unlimited coffee to endless brownies to all the Chinese food you can handle for a small monthly fee, subscription programs are taking over. Restaurant and retail marketers, be prepared; it’s only a matter of time before someone knocks on your office door and asks, “Why don’t we offer ____ as part of a subscription program?”
Subscriptions are a powerful loyalty tool with lots of advantages. Subscriptions grow revenue and customer visits while building loyalty and differentiating unique brand propositions. And subscriptions are only becoming more popular. In 2022, the average consumer held, on average, five subscriptions, with a total annual spend for all of them at £640, or £130 per subscription. This means that if a restaurant can convince 100 guests to sign up for an average subscription, they can look forward to an annual incremental revenue of £13,000.
What to offer? Netflix vs. Estee Lauder vs. Amazon.
Of course, not all subscription programs are alike. We have identified three major categories of subscriptions, exemplified by subscription services from Netflix, Estee Lauder, and Amazon.
Naturally, choosing your type of subscription service will vary depending on your brand, your concept, and your menu. Convenience stores will naturally gravitate towards add-on product subscriptions such as coffee to encourage in-store purchases, while pizza restaurants may lean toward service subscriptions offering free delivery.
Segmentation leads to success. Data determines the item.
After you’ve aligned your brand with a category of subscription items, use segmentation to determine the target audience for your subscriptions. Because subscriptions have broad appeal across all visitor types, segmentation is key to determining which items will target the right audience. Matching the core data against your key visitor types makes that clear. Let’s take some hypothetical data below. It’s easy to see that the best item to offer highly depends on the subscriptions category and the audience. For this particular brand, it’s clear that pizza will appeal to its most frequent visitors, while fries are an obvious choice for an add-on. On the other hand, if this brand is trying to encourage its medium- and low-frequency guests to come more often a sandwich subscription could encourage repeat business. Moreover, a sandwich subscription also appeals to new, potentially high-frequency guests. And add-ons of either beer or fries appeal to new visitors of all types and would potentially be effective at wooing single visitors to visit again. Finally, the data shows that offering a pizza-slice subscription is a poor choice across the board.
As the popularity of subscription programs grows, the pressure on your restaurant or coffee shop to offer one will become undeniable. Fortunately, the question of which item to offer comes down to data and your business strategy. Armed with this knowledge, you may find yourself knocking on a colleague’s door shortly, asking, “Why don’t we offer ____ as part of a subscription program?”
You can download our latest subscription report by clicking the button below.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
Consumer behaviour & preferences are constantly evolving alongside technology, restaurant operators must think creatively to attract and retain loyal customers. While the concept of subscriptions might have once been limited to newspapers and magazines, this business model has transcended industries and is now making waves in the culinary realm. Welcome to the era of subscription-based offers in the restaurant industry – a dynamic approach that not only boosts revenue but also nurtures enduring customer loyalty.
The Power of Subscriptions Across Industries
Subscriptions have successfully disrupted various sectors, ranging from entertainment to fashion. This innovative strategy captivates customers by offering exclusive benefits, building a strong rapport, and fostering brand devotion. In a notable survey conducted by McKinsey in 2018, 46% of consumers reported subscribing to online streaming services like Netflix, signifying the growing prevalence of subscriptions in everyday life.
Subscriptions: A Recipe for Restaurant Triumph
The allure of subscriptions is rooted in their ability to provide more than just a one-time transaction. When it comes to the restaurant industry, this model opens the door to a myriad of possibilities. Subscriptions can be harnessed in diverse ways, catering to the unique needs and desires of customers, all while fostering lasting relationships.
The Essence of a Subscription
At its core, a restaurant subscription involves customers paying upfront for a package of services or meals to be redeemed later. For instance, the concept of “meal passes” can offer customers a cost-effective option compared to purchasing individual meals each time. Alternatively, an unlimited options model allows patrons to pay a single rate for limitless access to specific menu items or dining experiences, similar to Olive Garden’s innovative Never Ending Pasta Pass.
Benefits Beyond the Plate
The appeal of subscription-based offers extends far beyond financial savings. While cost-effectiveness is undeniably attractive, customers are also drawn to the convenience, recognition, and exclusive perks that subscriptions can provide. Here’s how restaurant operators can use subscriptions to their advantage.
“1 in 6 consumers who are not currently subscribers are “very” or “extremely” interested in being provided a restaurant subscription service” Paytronix Subscription report 2022
How do you create raving fans?
There are many ways that you can use subscriptions to create loyalty amongst your customer base & keep those loyal customers coming back for more.
Exclusive Insider Access: Offer subscribers early access to new menu items, seasonal specials, or themed events. This exclusive insight makes customers feel like valued insiders, fostering a sense of belonging.
Loyalty Acknowledgment: Implement tiered subscription levels that reward long-term patrons with increasing benefits. Recognising and appreciating loyalty can significantly enhance customer satisfaction and encourage continued engagement.
Personalised Dining Experiences: Leverage subscription data to tailor offerings to individual preferences. Whether it’s dietary restrictions or flavor preferences, providing personalised experiences amplifies customer delight.
Curated Culinary Journeys: Craft subscription packages that guide customers through unique culinary adventures. These can include tasting menus, food and wine pairings, or themed dining events, adding an element of excitement and discovery.
Simplified Ordering Process: Streamline the ordering process by allowing subscribers to pre-select meals, reducing wait times and enhancing the overall dining experience.
Community Building: Foster a sense of community among subscribers through dedicated events or online forums where like-minded food enthusiasts can connect and share their experiences.
As the restaurant industry continues to evolve, embracing subscription-based offers has become an essential ingredient for success. With the power to drive revenue, build customer loyalty, and provide a personalised dining experience, subscriptions offer a unique way for restaurant operators to stand out in a competitive landscape. By combining convenience, recognition, and enticing perks, restaurants can create a recipe for long-term success that leaves patrons craving more – not just for the food, but for the unforgettable experiences that come with being a valued subscriber.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
As the world emerges from the pandemic, the restaurant industry has witnessed shifts in gift card sales trends. Paytronix’s Restaurant Gift Card Sales Report: 2023 reveals intriguing insights into how full-service restaurants (FSRs) and quick-service restaurants (QSRs) have experienced changes in gift card purchases. Additionally, inflation has influenced guest spending habits, leading to an upsurge in higher-value gift cards. In this blog, we explore the key findings of the report, highlighting the gift card sales patterns and redemption profiles observed in the first half of 2023.
Gift Card Sales Trends
The report underscores that FSRs have observed an increase in gift card sales as the pandemic recedes. On the other hand, QSRs, which experienced a boost in gift card purchases during the pandemic, have seen a decline in sales. This shift reflects changing consumer behaviours and preferences as dining patterns evolve.
The months of November and December consistently witness a significant surge in gift card sales, accounting for nearly half of the total annual sales. Interestingly, a second spike in sales occurs in May and June, colloquially known as the “Moms, Dads, and Grads” period, when many celebrate important milestones. Other first-half-of-the-year holidays, such as Valentine’s Day and Easter, also contribute to increased gift card purchases.
Redemption Profiles
The report delves into the redemption patterns of gift cards tracked by Paytronix. Notably, the redemption rates at 180 days for cards sold in 2022 stood at 57%. Although this figure is relatively stable compared to 2022, it remains lower than the pre-pandemic levels observed in 2019.
One noteworthy trend is the difference in redemption rates between QSRs and FSRs. While QSR gift card redemptions have contributed to the overall lower redemption rate, fine-dining establishments have achieved a new high in redemption rates in 2022. This disparity could be attributed to consumer preferences for dine-in experiences in high-end restaurants as the world reopens and restrictions ease.
Physical vs. E-Gift Cards
Around Mother’s Day and Father’s Day, the report identifies trends related to the preference for physical versus electronic gift cards. These holidays prompt a demand for tangible, sentimental gifts, leading to increased sales of physical gift cards. On the other hand, throughout the year, e-gift cards have gained popularity due to their convenience and suitability for last-minute gifting.
Download the report
The Restaurant Gift Card Sales Report 2023 from Paytronix provides valuable insights into the evolving landscape of gift card sales in the restaurant industry. The pandemic’s impact on consumer behaviour, combined with inflationary pressures, has shaped gift card purchase patterns. As the industry adapts to changing preferences, fine-dining establishments have experienced heightened redemption rates, while QSRs have navigated fluctuations in sales.
The report serves as a valuable resource for restaurant operators and marketers seeking to understand and leverage the trends in gift card sales. As we look ahead to the rest of 2023, it will be intriguing to observe how consumer habits continue to evolve and shape the future of the restaurant gift card market.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
During the pandemic, many brands turned to third-party ordering services as a lifeline to maintain their business and enable delivery services. However, as we move into a post-pandemic reality, brands are realising the significant advantages of having a first-party ordering channel alongside third-party platforms. In this blog post, we will explore why first-party ordering is becoming increasingly important, the unique traits of first-party customers, and how brands can enhance the ordering experience to maximise customer loyalty and revenue.
The Continued Relevance of Third-Party Ordering
Before delving into the benefits of first-party ordering, it’s essential to acknowledge the ongoing value of third-party platforms. Even as brands strive to convert third-party customers into first-party patrons, third-party services will remain an integral part of customer acquisition strategies. Restaurants and convenience stores can tap into a larger customer base and expand their reach through these platforms.
The Advantages of First-Party Ordering
Paytronix, in their recent online ordering report, reveals that first-party ordering customers exhibit several distinct characteristics compared to their third-party counterparts. These advantages make a compelling case for brands to prioritise their first-party ordering channels:
Increased Order Value: First-party customers tend to order higher-value items more frequently than those using third-party platforms. This higher average order value translates into increased revenue for businesses.
Generous Tipping: First-party customers are more likely to tip larger amounts. Their appreciation for the convenience and quality provided by the brand’s direct ordering system often reflects in their willingness to reward the service with a generous tip.
Brand Loyalty: First-party customers are more likely to be part of a brand’s loyalty program. This loyalty not only enhances their affinity for the brand but also leads to more frequent visits and increased customer retention.
Optimising the First-Party Ordering Experience
Recognising the unique traits of first-party customers, it becomes crucial for brands to prioritise and enhance the first-party ordering experience. Here are a few key considerations:
Streamline Ordering Process: Ensure that your first-party ordering system is user-friendly, intuitive, and mobile-responsive. Simplify the steps involved in placing an order and provide clear options for customisation, special instructions, and dietary preferences.
Efficient Order Fulfilment: Timely and accurate order fulfillment is vital to customer satisfaction. Invest in robust order management systems, optimise kitchen operations, and maintain clear communication channels with customers to provide real-time updates on order status.
Personalisation and Customisation: Leverage customer data to personalise the ordering experience. Recommend favourite items based on past orders, offer personalised promotions, and provide tailored recommendations to create a sense of individualised attention and care.
Seamless Integration with Loyalty Programs: Integrate your first-party ordering system with your loyalty program to provide incentives and rewards for customer engagement. Offer exclusive discounts, rewards, and early access to new menu items to encourage repeat orders and strengthen loyalty.
Proactive Customer Support: Establish channels for prompt and effective customer support. Offer multiple contact options, such as live chat, email, and phone, to address any concerns or inquiries promptly. Resolving issues efficiently can turn a potentially negative experience into a positive one, fostering customer loyalty.
While third-party ordering services continue to be an important part of the customer acquisition strategy, brands must recognise the unique advantages offered by their first-party ordering channels. First-party customers tend to order higher-value items, tip generously, and demonstrate stronger brand loyalty. By prioritising and enhancing the first-party ordering experience, brands can cultivate a base of loyal customers who not only contribute to increased revenue but also serve as ambassadors for the brand. Investing in the infrastructure and processes necessary to provide a seamless and exceptional first-party ordering experience is an investment that will pay off in the long run, strengthening customer relationships and driving sustained growth.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
In today’s competitive restaurant industry, effective marketing strategies are crucial for attracting and retaining customers. One powerful approach that can significantly enhance your restaurant marketing plan is deep segmentation. By diving deeper into your target market and understanding their unique preferences and behaviours, you can craft tailored messages and experiences that resonate with your customers on a personal level.
Understanding Deep Segmentation
Deep segmentation goes beyond basic demographic information and delves into psychographic, behavioural, and contextual factors. It involves dividing your target market into distinct groups based on their preferences, interests, motivations, and values. By gaining a deeper understanding of your customers’ needs and desires, you can create highly personalised marketing campaigns that speak directly to their individual preferences, ultimately driving engagement, loyalty, and repeat business.
Collecting Data
To implement deep segmentation effectively, you must first collect relevant data about your customers. Utilise various channels, such as online surveys, social media analytics, and customer feedback, to gather information about their demographics, preferences, purchasing patterns, and dining habits. This data will serve as the foundation for creating distinct customer profiles and segments.
Creating Customer Personas
Once you have collected sufficient data, it’s time to create customer personas. These personas represent different segments within your target market and embody the characteristics, preferences, and behaviours of each group. Each persona should include demographic information, motivations, interests, challenges, and preferred dining experiences. By visualising these personas, you can better understand and empathise with your customers, enabling you to tailor your marketing efforts accordingly.
Personalised Marketing Campaigns
With well-defined customer personas, you can now develop highly targeted and personalised marketing campaigns. Craft messages and offers that align with each segment’s unique preferences and motivations. Leverage email marketing, social media advertising, and other digital channels to deliver tailored content to the right audience at the right time. Implement dynamic website content and personalised promotions to enhance the customer experience further. By addressing their specific needs and desires, you will foster a deeper connection with your customers and increase the likelihood of conversions.
Tracking and Adjusting
To ensure the success of your deep segmentation efforts, it’s crucial to track and analyse the performance of your marketing campaigns. Use analytics tools to monitor customer engagement, conversion rates, and revenue generated from each segment. Identify what resonates with each group and optimise your campaigns accordingly. Continuously refine your customer personas and adapt your strategies based on evolving customer preferences and market trends.
Deep segmentation offers a powerful toolset for marketers in the restaurant industry to connect with their target audience on a deeper, more personal level. By understanding the unique preferences and behaviours of different customer segments, you can create highly targeted and personalised marketing campaigns that drive engagement, loyalty, and ultimately, business growth. Embrace deep segmentation and unlock the full potential of your restaurant marketing plan.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
Want to learn how to create a business that builds upon itself year after year after year? Come along and listen to our panel of experts and meet your peers as we reveal how to unleash hospitality’s industry’s secret weapon, loyalty, hosted by Paytronix.
Join us to network with industry peers and enjoy brunch provided by Brewdog, in their iconic new site in Waterloo station,
The cost of living increased sharply across the UK during 2021 and 2022. The annual rate of inflation reached 11.1% in October 2022, a 41-year high, before easing in subsequent months. It was 8.7% in April 2023, its tough going out there, add the current headwinds to the challenge of customer retention, with so much choice, how do we keep our guests coming back for more?
As a hospitality operator you are tasked with retaining your present customers and acquiring new ones. Your loyalty programme needs to make it easy for you to enrol more guests, capture more data and trigger more repeat business, so come along on 29th June to Brewdog in Waterloo, grab a late breakfast, reconnect with industry friends & make some new connections.
Stay tuned for our speaker announcements in the coming weeks.
Our panel are going to discuss,
AI in Hospitality, what difference it can make and how far can it go in transforming the way we market to our customers
What emerging technologies or trends will influence the future of digital loyalty programs in the hospitality industry, and how the industry is adapting to these changes.
What role data will play in shaping and optimising digital loyalty programs, and how can businesses leverage customer data to create more personalised experiences.
Sharing best practice, specific examples of how digital loyalty programmes can positively impact customer retention and increased revenue.
The potential challenges or barriers in adopting and implementing a digital loyalty program, both from a technical and organisational perspective
And much more…..
Your regular customers create 80% of your future revenue. Grab your seat, and secure your future revenue for 2023 and beyond.
Further resources:
How AI Enhances Online Ordering & Loyalty with Better Personalised Upsells
Choosing the loyalty programme that’s right for your restaurant – your complete guide
How well do you really know your customers?
I am sure you know when you’re regulars pop in, who always orders that dish that no one else does, but how much do you really know about your customers, when they spend, how they spend and how they interact with your brand?
In the highly competitive restaurant industry, understanding your customers is paramount to success. Deep segmentation, a strategy that involves categorising customers into specific groups based on various factors, can provide valuable insights for restaurant owners.
By implementing deep segmentation techniques, restaurant owners can gain a deeper understanding of their customers’ preferences, behaviours, and needs.
In this blog post, we will explore how restaurant owners can utilise deep segmentation to truly get to know their customers and enhance their overall dining experience.
Collecting and Analysing Customer Data
The first step in utilising deep segmentation is to collect and analyse customer data. Restaurants can start by implementing a customer relationship management (CRM) system or loyalty program to capture valuable information such as dining preferences, frequency of visits, and order history. By gathering this data, restaurant owners can gain insights into customer behaviour patterns, identify trends, and discover unique preferences across different customer segments. This information serves as the foundation for effective deep segmentation and helps tailor experiences to specific groups.
Demographic and Psychographic Segmentation
Demographic and psychographic segmentation are two key components of deep segmentation for restaurant owners. Demographic segmentation involves categorising customers based on characteristics such as age, gender, income level, and location. Psychographic segmentation focuses on understanding customers’ motivations, lifestyle choices, and preferences. By analysing these aspects, restaurant owners can develop targeted marketing campaigns, create menu items that cater to specific dietary preferences or cultural tastes, and offer promotions that align with customers’ interests. This level of personalisation enhances customer satisfaction and builds stronger connections with patrons.
Behaviour-Based Segmentation
Another vital aspect of deep segmentation for restaurant owners is behaviour-based segmentation. This approach involves analysing customers’ dining behaviours, including visit frequency, average spending, preferred dining times, and menu preferences. By understanding these behaviours, restaurants can tailor marketing efforts, loyalty programs, and promotional offers. For instance, if a segment of customers tends to dine during lunchtime, restaurants can create lunch specials or discounts specifically for that group. Behaviour-based segmentation also helps identify customer preferences for specific cuisines or ingredients, enabling restaurants to curate their menus accordingly.
Personalised Marketing and Engagement
Deep segmentation empowers restaurant owners to create personalised marketing and engagement strategies. By understanding customer preferences and behaviours, restaurants can target specific customer segments with personalised promotions, offers, and recommendations. This level of customisation makes customers feel valued and appreciated, ultimately enhancing their overall dining experience. Moreover, personalised engagement through channels like email marketing, social media, or loyalty programs allows restaurants to maintain regular communication with customers, keeping them informed about special events, new menu items, or exclusive promotions.
Continuous Feedback and Iteration
Deep segmentation is an iterative process that requires ongoing analysis and refinement. Restaurants should encourage customer feedback through surveys, online reviews, or feedback cards to gain insights into their dining experience. This feedback provides valuable information that can be used to refine deep segmentation strategies and improve the overall customer experience. By listening to customer input and continuously adapting offerings based on their preferences, restaurant owners can foster a sense of loyalty and ensure customers feel heard and appreciated.
Deep segmentation offers restaurant owners a powerful tool to truly get to know their customers. By collecting and analysing customer data, implementing demographic, psychographic, and behaviour-based segmentation, and personalising marketing and engagement strategies, restaurants can create tailored dining experiences that meet the unique needs of their customers, ultimately fostering loyalty and long-term success in the competitive restaurant industry.
Creating Raving fans through loyalty podcast
Recently Charles Grey, CRO from Paytronix, sat down to discuss his thoughts on loyalty & creating raving fans in the hospitality industry with our partners podcast, Tech on Toast
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
