In a world where consumer tastes and behaviors are constantly shifting, restaurants must be agile and adapt to stay ahead. Customer retention can go a long way in helping you achieve that goal.
In fact, boosting customer retention by just 5% can lift profits 25%-95%. Why? Loyal customers tend to spend more, and they're more likely to try your new offerings.
But how do you boost customer retention? Let's explore some of the top ways to refresh your restaurant to keep diners coming back for more.
Make Your Dining Area More Comfortable and Stylish
When you step into your dining room, what do you see? How do you feel? Are you creating the environment you want?
Today's consumers prefer restaurants with memorable and experiential atmospheres. They want spaces that are comfortable, warm and inviting, but they don't want to sacrifice convenience.
Will your establishment meet their expectations?
If you haven't updated your decor in a while, it may be time to refresh your dining space.
You may not need a full restaurant makeover, but updating your decor can have a positive impact on the customer experience and encourage them to return.
Research modern restaurant design to get inspiration and start making strategic changes that help the space feel fresh without changing the entire vibe of the space.
Elevate Your Menu and Service
Consumer tastes change over time. Is your menu changing and adapting with them? If not, it may be time to add fresh dishes to entice customers (new and loyal) to drop in.
Ultimately, the food is what matters most. Yes, service and ambiance are important, but if the food isn't great, customers will be less likely to return.
If you're not sure where to start with menu changes, turn to your customers for help. Encourage them to share their thoughts and recommendations. Ask them in person, or send follow-up emails after the visit.
Review your feedback and look for trends in the comments. Maybe your customers want more vegetarian options, or maybe they'd love to see more burger options on your menu.
Use customer feedback to inspire your menu changes and brainstorm food presentation ideas to give diners a reason to return.
While you're working on your menu, consider how you can improve your service as well. An estimated 89% of customers say that excellent service influences their decision to return to a restaurant.
Diners want excellent service. Are you meeting their expectations?
Again, you can ask for feedback from customers on how they would rate your service. Identify areas of improvement and train your team to create an even better customer experience.
Invest in New Technology
Consumers value convenience, and they want more personalized experiences when dining out. Technology can help you deliver that convenience and personalization they crave.
Here's how:
- Tablets or self-service kiosks allow guests to order at their convenience without having to wait for a server.
- Kitchen display systems help chefs work faster and with greater precision to minimize errors and delays.
- Contactless payments help customers get in and out more quickly by eliminating lines at the register.
- Customer relationship management (CRM) systems allow you to keep track of guest info and behavior, so you can deliver a more personalized experience.
Technology can improve staff efficiency while improving the customer experience. When dining with you is convenient and pleasant, patrons are more likely to become loyal customers.
Get Active on Social Media
Your customers are on platforms like Facebook, Instagram and TikTok. Are you? If not, it's time to start.
Social media gives you a chance to connect and engage with your target market on a deeper level. Those relationships build customer loyalty, helping boost your retention at the same time.
Being active on social media also keeps your restaurant at the top of your customers' minds when they're looking for a place to dine.
It's one of the most overlooked restaurants advertising ideas, but you need to be strategic.
- Focus on the platforms your customers spend the most time.
- Be consistent. Post new content regularly.
- Share the faces behind the scenes to build trust and loyalty.
- Feature new dishes and special promotions to get your regulars through the door.
- Run contests or giveaways to boost engagement.
- Create fun challenges like "tag a friend" and offer free food to the winner of your photo contest. User-generated content like this wins trust and encourages customers to visit your restaurant.
- Share photos of people eating at a restaurant event to entice customers to come in.
Staying active on social media gives you a chance to build lasting relationships with your customers. Post regularly, engage with your audience and watch as your customer retention levels improve.
Reward Customer Loyalty
Loyalty programs boost restaurant sales and entice customers to return. If you don't have one already, it may be time to consider one.
Your program doesn't have to be complicated. Even a simple punch card can be effective. Offer something simple like free coffee, pastries or other small items. The classic "buy 10, get one free" model still works very well for restaurants. All you need are well-designed cards and hole punchers to start a program like this.
Digital loyalty programs are another option, and they are increasingly popular with consumers. They can integrate with your POS, and they give you so much flexibility in terms of how you reward customers.
You can offer:
- Reward points for every dollar spent, and a selection of items they can choose with their points.
- A spending threshold. For example, spend $50 and get $5 off.
- An item threshold. For example, the buy 10, get one free offer we just discussed.
Many of these digital programs are smooth and seamless to set up via your POS system. They can track customer spending via their phone number, email or even the cards they use to pay.
By offering rewards, customers will be more likely to stick around and continue dining at your restaurant.
The Takeaway
Customer loyalty should be a top priority for your restaurant. Returning customers spend more, and they help keep your establishment in business during slow periods.
By making small and meaningful changes to your menu, dining space, service and technology, you give customers more reasons to return to your restaurant.