Did you ever wonder how much does it cost if your customer will be happy vs unhappy?
Its often common that restaurant owners don’t care too much on customer satisfaction and you will be surprised what would be the cost of retaining one happy customer vs unhappy customer!
There will be an Online calculator with fields.
- Average ticket size
- Monthly frequency
- Lifetime of a customer
- 12 months
- of people (2)
If you have a good product, give great service and manage to convert a guest into a regular, they’ll keep coming back for 5 to 7 years on average
Every restaurant owner should be knowing “Lifetime value of a customer” and how an unhappy customer majorly impacts your revenue.
Let’s say one happy customer comes in twice a month and their ticket is 1200/-
Their lifetime value is (1200(Average ticket size) x2(monthly frequency) x 12 months x 5 years (life of a customer) x 2(no. of customers))
One unhappy customer is likely to give his opinion on your food and service to at least 2 more people which makes you lose 4 good customers who likely could have been your potential customers.
Their lifetime value is (1200(Average ticket size) x2(monthly frequency) x 12 months x 5 years (life of a customer) x 4(no. of customers))
A restaurant owner should be aware about customer reaction management and how to create a positive reaction among customers, to be successful and keep customers coming back over and over. It’s never about the one-time sale, it’s always about the relationship and repeat business, especially in a hyper-local environment like restaurant and food.
Here is some facts no one else will tell you,
The first time someone visits your restaurant, there is less than a 40% chance they will return. The second time they visit, they now have a 45% chance of coming back.The third time they visit, there’s a 70 percent chance they will come back a fourth time.And increasing guest frequency by just one visit per month increases your revenue by up to 12 percent. And he will only visit again if he is happy!!!
You have to market to three visits, not one. This is the part everyone misses!
Restaurants should never market for one visit, they should market for three. Understand that when it comes to marketing a restaurant it’s all about creating a regular and a happy customer. Once you get a customer in a third time it starts to become a habit.Going out to eat is about more than just the food, it’s a social experience. It’s one that requires good service, a personal touch, and maybe even some perks to encourage loyalty to your business.
Don’t think twice about giving away a free meal, appetizer, dessert, drink or all of the above to gain a customer for life!