March 9, 2024
How to Successfully Retain Restaurant Customers in 2024
It’s easy to fall into the trap of focusing solely on how to attract new customers, and not have a plan for how to retain restaurant customers. Returning customers offer the most value to your restaurant.
A strong contingent of loyal patrons can do wonders for business, not only providing a reliable stream of revenue but also spreading the good word about your establishment far and wide.
Winning customers over is the first step, but keeping them coming back depends on more than just good food, though it is a top priority. The reality is that customer expectations are shifting, and convenience and personalization are the new standard. So, how do you get your customer retention to an all-time high?
Why Restaurant Customer Retention Matters
Let’s cover the basics with a quick customer retention definition: it means preventing your existing customers from leaving for new pastures. In a restaurant setting, you don’t want a customer to dine with you once and then never come back again, or for long-time customers to switch to a competitor.
It’s well known that focusing on keeping existing customers makes more financial sense than searching for new ones. If you prioritize new customers over current ones, you’re placing all your eggs in one unpredictable basket.
Loyal customers spend more over time, write good reviews on the internet, and tell their friends and family that your restaurant is one worth visiting. Essentially, they not only support your profits, they also bring in new customers.
courtesy unplashed
How to Successfully Retain Customers for Your Restaurant in 2024
Now that we’ve covered what customer retention is and why it matters, let’s explore how to ensure your consumers keep coming back to your restaurant.
Know Your Customers
A big part of creating a flourishing food business is about building strong customer relationships. For this to work, you must understand them. Here’s how to get started:
The Power of Data
You need a good CRM (Customer Relationship Management) system. It’s where you store all the important details: names, favorite dishes, those special occasions like birthdays and anniversaries. However, CRM is not just a database. When used effectively, it provides an in-depth understanding of your customers.
With enough data, you’ll start noticing patterns. Who are your regulars, those faces that come back night after night? What are those dishes everyone keeps ordering, or the times of day when you’re busiest? This takes the guesswork out of your decisions.
Analyze and Personalize
Once you understand these patterns, you can start personalizing. For example, send an email on their birthday that offers a treat on the house if they come in for a meal within the following two weeks.
Another idea is to look at the customers who booked with you during the Christmas period last year. You can then let them know what special dishes you’ll have on the menu this coming festive season, along with any special events you have planned. Little touches like this build a rapport and let customers know you’re paying attention.
by Jay Wennington on Unsplash
Beyond Data
Numbers can tell you a lot, but the value of human interactions remains. Train your staff to be observant—who seems like a regular? Did a table order something particularly exciting? Casually striking up a conversation can be incredibly valuable. Find out what brings them in, what made them choose that specific dish, and even what they think could be improved.
This shows you’re not just focused on the sale, but the whole experience. It lets you find out those hidden motivators; maybe they’re all about trying new things, or perhaps comfort food is their jam. That kind of connection is what makes customers feel seen, appreciated, and way more likely to choose your restaurant again and again.
Reward Loyalty
Once you’ve got your data in order and you’re applying those personal touches, it’s time to think about rewarding your customer’s loyalty.
Think Bigger Than Discounts
Sure, a discount on a meal is nice, but try to think outside the coupon box. Loyalty programs should be about creating experiences that feel special and exclusive. Tiered systems are fantastic for this—start with simple rewards, like a free dessert with their next meal.
Dedicated customers can work their way up to bigger perks, like a complimentary meal or an invitation to a special tasting menu event. That being said, the element of surprise can also be very powerful. Random small freebies, like an after-dinner coffee, show you’re taking personal note of their loyalty.
Referral programs
Part of building a loyal customer base is about rewarding those who visit the most, but it also involves recognizing the incredible potential of word-of-mouth. This is what will turn your happy customers into your biggest advocates.
A strong referral program is a win-win. Offer a little incentive for both the person referring and the new customer they bring in, whether it’s a discount or a special treat. You get new customers, and your loyal patrons feel valued.
by Priscilla Du Preez 🇨🇦 on Unsplash
Your Virtual Community
The influence of social media cannot be overstated. You should have an online presence on multiple platforms. Encourage customers to share photos of their meals, leave reviews, and tag your place in their posts.
Make it even more tempting by offering bonus loyalty points or small rewards for these actions. This builds a sense of community around your restaurant, but it also gets your name in front of a whole new audience of potential diners.
Technology is Your Ally
The right tech tools offer invaluable support to your restaurant team. Let’s break down how they help you improvise your operations, personalize experiences, and get your marketing working smarter, not harder.
Efficiency & Personalization
Invest in good tech. An online reservation system is a given, but it’s also important that all your systems integrate perfectly, including tools like Dialpad customer service software or a payment processing platform. Find systems that share data, so you can see the bigger picture.
Track what people are ordering, identify the most popular dishes, and how busy you get on specific days or times. This will help you plan staffing and promotions. Most importantly, these systems can tell you who’s a first-time diner versus your treasured regulars, allowing you to tailor everything from welcome emails to exclusive rewards.
Direct Communication Tools
Don’t just rely on generic email blasts that everyone ignores. SMS and email marketing can be incredibly effective, but only if you use them smartly. This means targeting specific groups of customers for maximum impact. If they reserved a table on Valentine’s Day last year, be sure to send them a booking reminder for the coming year.
Use all the tools at your disposal to conduct win-back campaigns too. Look for regulars who haven’t been in for a while and send them a friendly email with a “we miss you” incentive to bring them back.
This is where your restaurant marketing budget goes the extra mile because you’re not just shouting into the void, you’re reaching the right people with messages they’re likely to respond to.
Social Media
If you’re just using your social media to list your daily specials, or for the occasional announcement, you need to branch out. Social media allows you to have real conversations with your customers and engage with them in fun ways. Contests, for example, are a classic for a reason; everyone is excited by the prospect of a free dinner.
You could also share behind-the-scenes glimpses of your kitchen crew in action or the story behind your signature dish. Most importantly, respond to people. Answer questions quickly, thank them for great reviews, and even playfully engage with lighthearted comments. This shows you’re not just a faceless brand, but a part of the community.
The Human Touch in a Tech World
Cutting-edge tech is great, but nothing beats friendly, human connection—that’s what makes a restaurant experience truly special. Here’s how to make your staff the greatest asset in building loyalty.
Exceptional Service as the Foundation
The fanciest app can’t replace a genuinely welcoming smile or a server who’s passionate about the menu. Invest in staff training; this means more than knowing how to reel off the specials, they should feel confident in creating those little moments that delight customers.
Can servers offer a taste of that new wine before someone commits? Do they know how to offer suggestions in a helpful, not pushy, way?
by Siyuan
Show You Care
Online reviews are part of the game. Respond graciously to both the good and the bad. See them as a chance to demonstrate you’re listening and willing to make things right. This shouldn’t just be a box-ticking exercise.
Really take on feedback to see where you can make changes, whether that’s by upgrading your booking system or improving your curbside pick-up operations. Being proactive about resolving issues can turn a disgruntled customer into a loyal one, even more so than if everything had gone smoothly in the first place.
Innovate Continuously
Keep menus fresh with seasonal updates and enticing limited-time offers to interest regulars. Look for ways to keep improving the customer experience, such as hosting unique events like themed dinners or wine tastings.
Think about what new trends you can bring in to keep up with the competition—is the time right to introduce a restaurant virtual assistant?
It’s also a good idea to give back to the community by partnering with local charities, such as food banks or homeless shelters. This is ethical and creates goodwill with the local community.
Improve Your Customer Retention in 2024
Relying on new customers to sustain your restaurant is an unreliable plan. A large base of returning customers is incredibly valuable, bringing in a steady stream of revenue and bringing their friends, family, colleagues, and wider social network to your door.
Take a holistic approach to improving customer retention by focusing on every aspect of the customer experience, from online interactions to small gestures like a complimentary appetizer. Investing in customer retention is one of the best ways to help your restaurant thrive.
Author’s Bio:
Jessica True – Senior Director, Marketing Strategy & Operations
Jessica True is the Senior Director for Marketing Strategy and Operations at Dialpad, a modern business communications platform that takes every kind of conversation to the next level—turning conversations into opportunities. Jessica is an expert in collaborating with multifunctional teams to execute and optimize marketing efforts, for both company and client campaigns. Here is her LinkedIn.
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