Reconnecting with Customers

Image via The Street

Image via The Street

Reconnecting with Customers

Building Loyalty and Maximising Sales by leveraging unique Points of Difference (PODs)  

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Maintaining a loyal and diverse customer base has never been more important in a time when most consumers are scrutinising how and where they spend their disposable income. In the last six months priorities and spending habits have shifted for consumers, while some customer segments have continued to purchase, in one form or another, there will also be a need to re-establish or reconnect with others in order to begin the journey back to previous levels of revenue and eventual profitability.

Each sector of hospitality is confronting new and evolving challenges and maintaining a high volume of customer patronage is problematical with varying social distancing requirements still in force throughout Australia and the implied health concerns at the forefront of most consumers minds. However the old axiom still applies, finding and enticing new customers costs 5 times as much as retaining your existing customers. So the message here is simple: retain as much of your existing customer base as possible, create opportunities to build greater loyalty with them and maximise your revenue. As an added incentive to this strategy, typically loyal customers are more profitable than new customers!

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As most hospitality operators have now realised, pivoting their operation as a means to generate some form of revenue has turned out to be not all about just surviving, but has thrown a spotlight onto previously unidentified opportunities and perhaps even latent demand as consumers have adjusted to their new circumstances. As part of the journey to creating a new balanced business that takes advantage of multiple revenue streams, each hospitality business will be leveraging their unique points of difference (PODs) that intrinsically customers have latched onto and value above other competitors.  

The question is: can you clearly identify your PODs and the value they bring to your customers? 

Attracting and retaining customers through promotion of your unique PODs and nurturing customers along their purchase path journey gives them an opportunity (increased frequency) to engage, meeting their new needs and wants, thus driving engagement and loyalty. Examples of opportunities include: expanding or adding complementary products, starting takeaway, heat & eat meals, virtual cooking classes, stocking exclusive ingredients, creating cocktail packs, cocktail making classes and collaborations with other highly valued operators.

Understanding why customers value the unique points of difference and how you communicate those PODs is what separates you from competitors in the mind of the customer. Seeking to enhance the value further, where possible, will drive customer loyalty signalling the commitment to the unique PODs and validate their choice to purchase from your business.

Over 20 years Future Food have been working with hospitality operators in all sectors to help tease out and define unique PODs through a process of reviewing, assessing, benchmarking and making best practice recommendations to improve their businesses. The insights and analysis that we have provided allow operators to take a step by step practical approach to maximise repeat business from existing customer segments increasing revenue and profitability. The approach is always from a holistic customer focused view point - authenticity of the cuisine & menu, food quality & presentation, customer service and hospitality, digital connectivity, sales & marketing, hygiene, health & safety and critically identifying the unique PODs. All of the above factors when optimised and working in concert, lead to the delivery of a service and product that will ‘connect’ with the identified customer segments and provide the best opportunity to maximise revenue. 

Recently, as part of our EIE (Execution is Everything) series, we highlighted Joseph Vargetto of Mister Bianco who has been a great example of a hospitality operator who builds loyalty effortlessly and maximises sales leveraging his heritage and passion for Sicilian food - great food, authentic Sicilian cuisine and menu, great service and hospitality, takeaway, delivery, heat & eat meals, cooking school, cook book and newsletter.

Mister Bianco - Execution is everything

Mister Bianco - Execution is everything

The above example illustrates that staying close to your customer segments and genuinely listening to their needs and wants is part of a successful communication strategy. A well-considered communication plan provides a self-sustaining feedback loop that can provide valuable insight into changes and fluctuations in customer sentiment while validating the unique PODs.

Examples of tactics to gather information, communicate and collect feedback are through:

  • Newsletters;

  • Ordering APP’s;

  • Social media channels (Facebook, Instagram, linkedin, twitter, Youtube);

  • Review websites (Zomato, Google, Tripadvisor);

  • Follow up surveys after utilising services; and

  • Reservations (for those that take them) – creating a database to record customer details and actively marketing to these customers.

  • Engage with local & state initiatives to rejuvenate and promote your business – linking through their websites & social media

  • Use 3rd party online hospitality news and information websites to promote your POD’s (Broadsheet, Concrete Playground, Timeout, Eater, Urbanlist)

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Takeaway Tuesday - New initiative Launched to Support Australia’s Hospitality industry. Click here for more

Takeaway Tuesday - New initiative Launched to Support Australia’s Hospitality industry. Click here for more

The importance of driving customer loyalty by leveraging unique points of difference in your business cannot be overstated. I will leave you with one example in my local area – great little Italian wine bar Barkley Johnson – café (Dukes coffee), deli, fromagerie, bottle shop, wine bar, internal & external seating plus courtyard – excellent service – memorable hospitality banter – quality coffee, quality food products – good digital connectivity – excellent cleanliness and hygiene. As part of their COVID pivot – significant increase in digital capability to buy online – convert all available space into a takeaway bottle shop and expand the range of food to new highly desirable products from Melbourne hospitality businesses outside the local 5km radius – they are bringing Melbourne to me. Simple but genius. Customer for life.

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Cover Images via Mercury News