Significance of CRM for Restaurants
We are living in ara of technology when I talk about the restaurant industry…trends are improving rapidly, similarly customers demand, preferences are changing. Without the help of technology such as CRM or POS systems, it’s hard for a business owner to stand ahead of the competition, let’s have a look at the growth of technology in the market –
When we talk about the Restaurant Industry there is an enormous growth in the tech market.
According to a new report by Grand View Research – The global CRM Software market is expected to reach USD 81.9 billion by 2025.
Also Read – 13 Simple New year Restaurant Promotion Ideas
Similarly, Restaurant CRM Market Growing Massively by 2019-2026. This growth trend is expected to continue in the coming years because of CRM suites.
When I talk about the benefits of CRM in a restaurant, Restaurant marketing software & management solutions is highly effective in increasing retention & customer loyalty in restaurants.
Additionally, they have also assisted in increasing revenues while simultaneously making the process of acquiring and retaining customers easier.
There are mainly two types of CRM solution used by business –
* Cloud-Based CRM
As per the study, there is 2008, 88% of business prefer on-premise CRM and Cloud-based CRM was used by 12% only. But now the situation is almost the opposite, 87% of CRM systems are now powered by the Cloud. Businesses are turning toward Artificial intelligence-powered CRM software because of more productivity.
(Why cloud-based CRM software, that will discuss in the later)
So what does Restaurant CRM Actually perform-
Why CRM for Restaurants has significant value in the growth of the business? We have already discussed the importance of restaurant CRM software, here will learn in detail. So let’s start.
If you run a restaurant, then you must know that becoming a successful restaurant owner is not easy, although there are numerous free restaurant marketing ideas available on the google which you can explore and get your business on track.
A. Customer Behaviour Analysis
Go for AI-enabled CRM software which helps you with big data analytics and deep learning. You must be thinking what is it?
So it is actually sorting out a large number of customer data to uncover hidden patterns, trends and customer preferences. to discover important information for quick decision making.
B. Focus On Retention Instead of Aquisition
CRM helps you to keep customers coming back to your restaurant, it clarifies the factors that contribute to repeat dining..e.i. to get repeat customers for you. Now the question is how?
Well, as I explained above about customer behaviour analysis right, so after that you’ll be able to find out your existing customer’s preference; likes dislikes, favourite dish, visits days and many more.
Here would like to add one point – If you focus on repeat customer they become your most loyal customer and help your restaurant to attract new customers.
Let’s dig into repeat customer statistics –
Retaining existing customer is 7x times less expensive than acquiring a new one.
80% of your future profit comes from 20% of your repeat customers.
The probability of selling to an existing customer is 60-70% & The probability of selling to a new prospect is 5-20%.
80% of businesses surveyed rely on email marketing for customer retention.
A 5% increase in customer retention through a restaurant loyalty program can lead to an increase in profits of between 25 and 95%.
c. Run ROI-Based Marketing Campaigns
Wanna know why I penned ‘ROI-Based’? Let me explain, Restaurant business people are kind of less-tech-savvy persons. They run marketing campaigns but sometimes don’t get that impressive results. But we have designed bingage as the easiest to use and affordable restaurant marketing automation software with all the automation feature that enables running impactful personalised marketing campaign with higher ROI.
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