One of the biggest priorities for restaurant marketers is driving a consistent stream of people in the door, to the counter, curbside, etc. In other words, guest acquisition: the process of bringing new guests to your business.
Traditionally, guest acquisition in the restaurant industry centered around mass communication (i.e. limited-time offers, newspaper and radio ads, and out-of-home advertising). But just as a restaurant manager would never shout to everyone in the dining room to find out if they’re enjoying their meal, mass communication tactics are impersonal and difficult to measure in terms of effectiveness.
There’s a better way to acquire new restaurant guests.
The first step: Knowing exactly who your current guests are—beyond demographics.
In this three-part blog series, we’ll walk you through the fundamentals of restaurant guest acquisition, so you can level up your marketing plan and, ultimately, drive revenue.
Getting To Know Your Guests—Beyond Demographics
Chances are your restaurant brand already has some sort of guest acquisition strategy in place, but unless you fully understand your current base, you’re likely wasting marketing dollars on attracting low lifetime value (LTV) or even one-time-only guests (e.g. people only motivated by discounts) and the ability to optimize your approach is limited.
So, what does it mean to truly know your guests? We’re not just talking about surface-level demographics like age and location, or even contact information. Restaurants should have all of the following intel and more about each guest at their disposal:
- Recency: Time of Last Visit, Last Check, Last Online Order
- Visit Trends: Last Waitlist Time, Reservation Time, Wi-Fi Sign-Up
- Engagement: Last Email or SMS Clicked or Opened
- Personal Info: Name, Email, Zip Code, Anniversary, Birthday
- Frequency: Number of Visits, Time of First Visit, Lifetime Frequency
- Average Spend: Check Averages, Tips, Online Order Totals
- Order Data: Ordered Items, Online Order Source
- Restaurant Details: Preferred Location, Last Location Visited
But how do you get all of that information? The secret to unlocking these valuable insights is first-party data, a restaurant-specific CRM, and an integrated tech stack.
What Is First-Party Data and Why Do Restaurants Need It?
First-party data is information that a company collects directly from its guests and owns. This includes all the ways a guest engages with a restaurant brand online, including orders, reservations/waitlist, comment forms, email sign-up, e-commerce, app usage, social media, surveys, and more.
Restaurant software like Olo takes that first-party data a step further by enriching it with sources such as your POS, pay-at-the-table solution, and payment platform, through tech integration.
More than ever, restaurants need first-party data to gain a clear understanding of their guests across the entire guest journey and more effectively tailor the experience to each individual. Remember: If you don’t know how your guests behave, you can’t influence their future behavior.
And yet, some tech vendors either don’t give restaurants ownership of their data or limit their ability to access and use it. The best way to find out who truly owns your data (and, ultimately, your guest relationship) is to dig in and ask the tough questions.
For example, when you pull a covers or online orders report, can you tell exactly how many originated from a source like Google or found your website directly? What about the number of guests who have visited/ordered once, twice, or don’t dine as often as they used to? And, if you can get access to all of your data, can you act on it?
If the answer to any of these types of questions is no, it’s time to reevaluate your restaurant tech stack.
Unlock Guest Insights with a Restaurant CRM
A restaurant CRM (Customer Relationship Management solution) like Olo’s stitches together data from your POS, reservation system, online ordering solution, and other restaurant-specific integrations into a single, unified guest profile—and makes it actionable.
This 360-degree view of each guest enables you to better understand their behavior and preferences, which, in turn, leads to more effective omnichannel communications, real-time personalization across guest touchpoints, hyper-relevant promotions, and revenue optimization.
Note that a standard, run-of-the-mill CRM may be limited in terms of its integration capabilities with your existing restaurant tech stack and what actions you can take to engage guests.
The Importance of an Integrated Restaurant Tech Stack
When it comes to getting to know your guests, the ability to collect and then access data is equally as important as having a restaurant tech stack built with systems that talk to one another. For example, do your POS, payment solution, Wi-Fi, CRM, reservation system (if you’re full-service), and online ordering solution share data? If not, you’re only getting part of the story of the guest journey.
To gain this comprehensive understanding of each guest, including their purchasing behavior, preferences, and long-term value to the business, you need to eliminate data silos.
So, before implementing any new systems, ensure that they integrate with your existing tech stack or take the necessary steps to do so.
Restaurant Data Analysis and Guest Segmentation
With integrated first-party data and a restaurant CRM, brands can analyze the guest journey across platforms and find out where and when guests spend money, what they spend it on, which channels they use to connect with the brand, their opinion of the dining experience, and their lifetime frequency.
In addition, restaurants can use the process of guest segmentation to identify which guests are most valuable long-term. Guest segmentation is the act of categorizing guests based on shared characteristics or behaviors, so businesses can effectively market and cater to the needs of each group.
Restaurant brands might choose to segment guests based on things like:
- Lifetime Value (LTV): Visited more than 10 times, ordered within the last month, and check average is over $50
- High Probability for Reorder: Clicked an email on a Tuesday, and ordered tacos online after 3 p.m. two weeks ago
- Opportunities to Treat VIPs: Number of visits is greater than 20, regularly orders dessert, and anniversary month is August
- High Churn Risk: Last visit was over 90 days ago and number of visits is greater than 10
- Big Spenders: Check average is over $100
Related: Jumpstart Your Restaurant Marketing Plan With These 5 Guest Segments
Now, how can we use all of this data and these segments to power a guest acquisition strategy?
In the second installment of our Guide to Restaurant Guest Acquisition, we’ll cover a variety of ways to turn guest insights and segments into a data-driven, omnichannel marketing plan that resonates with your target market. Stay tuned for proven strategies to help you find and attract new, high-value guests that mirror the interests and behaviors of your regulars and VIPs.
Learn more about our restaurant CRM and contact us today to find out how Olo can help you better understand your current base and attract new, high-value guests.
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