From Chettinad to Punjabi and Mexican to Italian, the Indian F&B industry probably offers one of the largest spread to its customers than most of the other markets in the world. With a huge customer base that is not averse to experimenting with new cuisines and blessed with a palette which can appreciate everything, India is one of the best markets for any restaurateur to be in. But it also poses a big challenge: a huge customer base that is split into several groups, each with its own taste preferences, making it difficult to entice everyone at one go. A mammoth challenge indeed, unless you learn to harness the power of data analytics and create smarter marketing campaigns targetted at your customers.
Customer analytics can help restaurateurs in identifying customers and their preferences and target them specifically for promotions. Micro-segmentation can be a very useful tool for this. Using micro-segmentation, one can divide the existing customer base into several unique groups based on key indicators like purchase history, demographics and spending patterns, and design special campaigns to attract them.
We have seen that campaigns based on micro-segmentation result in around 30 percent increment in the response rate compared to bulk promotional campaigns. For example, we have observed that customers who have a high bill value during their first visit have a much higher tendency to drop in again. Using micro-segmentation, one can identify this set of customers and create a separate engagement program to ensure that they can be retained.
Customer life cycle management (CLM) is another great tool restaurants can use to ensure multiple visits. Using CLM, a restaurateur can further his campaign to determine when the customer is most likely to plan his next outing. For example, a food delivery chain can segment its customer base and then chart their ordering preferences to determine the patterns specific to each group – how often they order, which day of the week and even the part of the day when they mostly order. Once the process is complete, all they have to do is to time their communication accordingly, customize them to the customer’s taste preference and enjoy an immediate increase in sales!
In our experience with over 250 fine-dine restaurants and QSRs in India, we have noticed that across formats, the drop-rate stabilizes after 3–4 visits and the customer’s loyalty is gained. With this learning, F&B retailers need to ensure that they cross the four-visit barrier fast, and customer micro-segmentation can help them do it.
We have seen that 75 percent of the customers who return for a second visit to an outlet come within a 30 to 60 day period. With analytics-driven targeted campaigns, you can ensure that most of your first-time customers return within this time frame to give you repeat business. You can also enhance the delight of your customers while they are seated at your restaurant or ordering over phone, by data-driven recommendations (called clienteling).
In many restaurants, we have equipped the staff with tablets with access to the customers’ previous purchases. Based on the past ordering patterns, the waiter can recommend what the customer is habitually likely to choose from the menu. You can even surprise him with his favorite dessert on-the-house before him even asking for it! These kind of initiatives will increase the customers’ joy manifold, ensuring that your establishment becomes their favorite In no time
About the Author
Aneesh Reddy is the Cofounder & CEO of Capillary Technologies.