6 min. read
Attraction and retention. When it comes to acquiring customers, both are key priorities for any business—and no exception for quick service restaurants (QSRs). While the two go hand in hand, they are two distinctly different initiatives. In this week’s post we are going to take a closer look at retention, and the role that user engagement plays in building retention to increase restaurant loyalty.
While standing out from the crowd and acquiring new customers is certainly an important step, keeping them—and building restaurant loyalty—is one of the most impactful things you can do to ensure long-term success for your QSR. Why? Let’s take a closer look.
“Most companies are sustained by the 80/20 rule, also known as the Pareto Principle,” says Stephen Lexby, 45/RPM Marketing Manager. “An old economics adage, the 80/20 rule suggests that 80 percent of your business is generated by 20 percent of your customers—typically your most loyal customer base.”
According to research performed by Bain & Company, a five percent increase in customer retention produces more than 25 percent increase in profit. This is because return customers tend to buy more from a company over time—and as they do, the operating costs to serve them is reduced. Add to it, this loyal customer base is more likely to refer other people to your QSR. Loyal customers are also typically more likely to pay a premium to get the menu items they want and like, versus switching to a competitor.
So, what’s the secret to retaining customers and building restaurant loyalty? It all starts with user engagement.
User engagement is all about making sure that the customers you engage, stay that way. Engaged users are loyal customers. They create customer accounts, regularly make purchases, subscribe to your emails, enroll in your QSR loyalty program, and recommend your QSR to other people. They value your product and spend time interacting with your QSR.”
Typically, user engagement is measured by how much time and/or money a person spends, as well as what sort of feedback they provide. A user engagement strategy is a plan to increase user interaction by creating positive experiences at every touchpoint—in your QSR, on your website or web app, via social media channels, and through your employees.
Let’s take a look at three pillars that can make user engagement a strong and successful approach for creating user experiences that build restaurant loyalty for your QSR.
Get to know your customers. User engagement is about connecting with customers on a meaningful level—and we stress meaningful. Who are your customers? What do they like? What motivates them to keep coming back? Loyal customers want you to know who they are, what they buy, and why. Data can give you all the details you need to create that connection. Make it easy for them to provide your QSR with the information you need to learn what they like and what changes could be made to enhance their customer experience.
Personalize the customer experience. According to a Mastercard sponsored report, 80% of consumers want promotions and services tailored to their needs. Customer data gleaned from your technology platform can be a powerful way to create relevant, personalized campaigns that engage, delight, and speak directly to your customers.
Reward them for their loyalty. Customer loyalty programs play an essential role in user engagement for QSRs. They provide customers an incentive to return and spend more by earning points and rewards. In turn, QSRs report additional sales and more repeat visits from guests enrolled in their loyalty programs. Highly successful programs can even transform customers into brand advocates.
Having partnered forward-thinking with QSRs like Nando’s and Coco’s and Shari’s, 45/RPM knows a thing or two about harnessing the power of technology to create stronger, data-driven, digital user experiences that build brand consistency, drive user engagement, and build restaurant loyalty.
Restaurant loyalty is built on trust, positive experiences, and a sense of community,” says Stephen. “By providing personalized, excellent service and engaging with customers in smart and relevant ways, you can build a loyal customer base and increase customer retention for your QSR.
Let’s talk about what we can do for you.