How to Increase Repeat Business for Your Restaurant?

Bringing in new customers is important for all restaurant owners. But, should it be their only focus? No. As a restaurant owner, retaining existing customers should also be on their priority. These customers are a sure-shot way to increase repeat business for restaurants.

According to Bain & Company, a 5% increase in customer retention can boost profits by 25% to 95%. So, continuously focusing on improving repeat customers’ footfall becomes non-negotiable. It can lead to sustained growth and lower acquisition costs.

Today, in this competitive market, only the best restaurants will survive. For that to happen - encouraging repeat visits is important.

Do you want to increase your restaurant’s customer retention rate? Do you like to offer more than just a dining experience to your customers? Are you looking for ways to drive repeat customers?

If your answer is yes, you have come to the right place. Here, we are going to cover:

• Who are repeat customers?
• Why are they important for restaurants?
• 5 customer retention strategies for Your Restaurant

Let’s get started without any further ado!

Who Are Repeat Customers?

They are individuals who visit your restaurant more than once. These customers continuously do repeat business with your restaurant and turn into loyal customers over a period.

Repeat customers may be loyal to your restaurant for different reasons - Excellent customer service, delicious food, special discounts, and more. They have a higher lifetime value and satisfaction rate.

Why Are They Important For Restaurants?

Identifying repeat customers and understanding their needs and preferences can be a powerful strategy for every restaurant business. They are a reliable source of revenue and can help you build a loyal customer base.

Indeed, new customers improve brand awareness. But they also increase the customer acquisition cost, which is not good for your restaurant business. Whereas retaining customers is an important part of a business because they cost less and bring more revenue. They greatly contribute to the stability, growth, and profitability of a business.

Repeat customers build a strong foundation for business growth and bring in business throughout their relationship with the restaurant.

5 Customer Retention Strategies For Your Restaurant

Do you want to nurture and retain your old customers? Here are 5 amazing strategies that can help you do it.

1. Build Loyalty Programs

Customer loyalty programs have become the bread and butter of every business. These programs are a way to appreciate and reward customers for their loyalty. It’s a marketing strategy designed to encourage repeat business and increase customer footfall.

The goal of loyalty programs is to give exclusive access to discounts and other rewards to the program members and make them feel valued.

They can enhance customer satisfaction and build a long-term relationship with them. Although these loyalty programs may come with their own sets of challenges; a well-designed program can set your restaurant apart from competitors and spread positive word-of-mouth.

Some food outlets like Subway and Pizza Hut are running successful customer loyalty programs and it’s worth taking inspiration from them.

2. Offer Excellent Service

Customers may forget about a bad dish soon. But they will never forget the bad customer service. They want to feel valued and welcomed at your restaurant. So they should be treated like a family. When you start seeing customers as more than just a money-making machine, you make a difference.

Here are a few examples of improving customer experience:

• Always express your gratitude
• Listen to their concerns patiently
• Reach out to them with no ulterior motive
• Ask for their feedback and suggestions
• Offer personalised services

Providing a better customer experience can lead to higher customer satisfaction. It leads to a positive dining experience, making way for improved brand reputation and fostering emotional connections with customers.

Treating your customers well is one of the reasons to sustain business growth and differentiate from competitors.

3. Provide Birthday or Anniversary Discounts

Imagine customers entering your restaurant with a wide smile: It feels incredible, right? You can turn this imagination into reality when you start remembering their special days like birthdays and anniversaries.

Entice customers to celebrate their birthday with you. Give them special discounts or rewards by setting up automated emails or SMS. Create a campaign and send x no. of emails or SMS before their birthday or anniversary.

It makes them feel a part of your family and leaves a long-lasting impression on them.

4. Ask For Feedback

Collecting feedback is one of the most practised customer retention strategies. Sometimes, a few restaurants neglect the value of customer feedback. It leads to more complaints and a poor customer experience. Poor customer experience = Customer dissatisfaction = Loss of repeat customers and business.

Leveraging feedback can be a game-changing business strategy. Reach out to your customers once in a while and ask for their valuable suggestions. Let them know you listen to them and consider their feedback. And once you start working on the improvements, they will feel heard and appreciated.

It will improve customer loyalty and encourage them to spread a positive word about your business.

5. Leverage The Power Of Personalisation

Tailoring dining experiences as per customer needs and preferences can create more enjoyable visits for them. A personalised experience often encourages customer engagement and makes their visit even more special. It ensures that customer needs are met in a diverse way.

Offering customised experiences can boost business growth and make way for repeat business.

Repeat Customers Drive Business Success

Repeat customers are the key to your restaurant’s business. Neglecting them may lead to the loss of potential revenue and customers. Therefore, developing meaningful relationships with them becomes important for profitability and business growth.

These strategies can retain existing customers and drive repeat business for restaurants.

Remember, your customers have a lot of restaurant choices. So, it’s important to ensure you have powerful customer retention strategies. Designing loyalty programs, encouraging customer feedback, personalisation, and excellent customer service are some great strategies and should be aligned with your overall marketing campaigns.

If you want to sustain your business growth and transform their mere transactional experience into a personalised dining journey, start aligning these strategies with your marketing campaigns right away.