Understanding the lifetime value of your customer is important part of restaurant marketing. What is a customer worth to you?
2014 is off to a crazy start. A recent article on Fox Business News cited that the winter weather has impacted small business by as much as 13% in the first two months of the year. I know it is early, but it may be time to double down on your restaurant marketing plans for 2014.
Do you know who the first time guest are who come to your restaurant? If not, this should be a key process in your Guest Experience strategy. It all starts with a simple question for the host or server. Have you been here before? That is the signal for the entire restaurant to win this customer and get repeat visits.
For an average restaurant, a customer is worth roughly $40,000 in lifetime sales. This number is calculated from direct sales as well as referral sales for a restaurant with a $30 check average for two. In a business where word of mouth referrals is part of the lifeblood, it is clear that customer retention is critical. With technology this number can be even greater with an effective reputation management program to build your business.
Where do you start to implement the process? Effective server training is part of the process; superior service and quality food also mix in to the equation. Last but not least, getting customer feedback is critical to the Guest Experience process. Do you have a process in place to understand your customer’s needs?