Key ways to leverage restaurant data analytics

Data has become so affordable and comprehensive at our fingertips that many large restaurants have made analytics a priority for creating data-driven restaurants.

The restaurant industry is now beginning to recognize data’s immense value to both the customer experience and to boost restaurant sales. According to MIT’s Sloan School of Management, data-driven organizations have 7% higher output in productivity than their less data-driven counterparts. According to Nucleus Research, investment in analytics pays off, with a $13 average return for every dollar spent.

The most immediate payoff for leveraging data for restaurant businesses comes in the ability to better understand their customers. More than 40% consumers in the United States have reported to be spending more due to personalization of services. By collecting data on consuming habits and focusing on loyal customers, you can group your customers into segments in order to deliver effective marketing campaigns. After all, you wouldn’t want to send your vegetarian diners a promotion for surf ‘n turf night, would you?

It is crucial to send the right message to the right customers at the right time in order to drive customer retention. This type of enhanced customer experience gives you a critical edge in the cut-throat restaurant industry, ultimately boosting your bottom line. Let’s take a look at how to make big data work for your business.

1. Collect data from multiple sources

These sources include mobile application feedback, POS system, online ordering platform, social media platform, reviews on websites like Tripadvisor, etc. If you are lucky, then all this data is already aggregated on a single dashboard through a customer management solution like Wefee1. If not, you’ll want to make it a habit to review data from each and every one of your sources on a regular basis. By collecting data from various sources, you will avoid missing out on valuable opportunities to leverage your data to better understand your customers, their purchasing behaviors and their preferences in order to create effective, tailored campaigns.

2. Let data make decisions

Data should be used to back up every decision made, especially regarding marketing campaigns. An approach that is data-driven enables smarter and more informed decision making as well as improves accountability for decisions and provides a higher level of transparency. Instead of using estimates and basing decisions on hunches, it can be explained by concrete statistics which helps in speeding up decisions and increasing overall confidence.

3. Democratize your data 

Data collected on restaurants should belong to all stakeholders within your restaurant chain, not just the higher ups, so it’s important to make your data accessible to all — from your franchisees and location managers to your front-line staff. Managers in all locations should review this data collected in order to make sure that they are taking full advantage of it. Giving access to this data to staff members at each location helps them to take advantage of it to personalize the customer experience, up-selling and bringing customers back time and time again.

The transformation of a data-driven culture won’t happen overnight 

This process takes hard work at every level of your business. By leveraging restaurant data analytics, restaurants can provide clarity, confidence in decision making, and improved customer engagement. Ultimately, increasing customer satisfaction, driving customer retention, and impacting your bottom line. So what’s stopping you?

For many businesses, it comes down to their software. Customer Management Tools, like Wefee1, integrates with POS systems, social media, online ordering systems, restaurant mobile applications and more. Not only does the platform pull actionable data from every customer touch point, but marketing promotions can campaigns can be created and managed through the platform for a holistic experience.

Learn how Wefee1 can optimize your customer management experience by leveraging the power of restaurant data analytics by requesting a demo today!

Ankita Srivastava

Ankita Srivastava

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