No More One-and-Done Diners: Metrics and Tips for Customer Retention
To succeed in the restaurant industry, you need data. Metrics like NPS and turnover rate give you insights to make informed decisions that improve customer satisfaction and retention. But numbers aren't everything! Ambiance also shapes how customers see your brand.
You most likely know someone who is a fantastic host, and when you visit their home, they treat you well with delicious food and music; if they are a great chef, it's the perfect combination.
We always want to return to places where we are well treated, and the same principle applies to your restaurant: If your customers like and feel comfortable, they will return. Paying attention to details like decoration, key metrics, and customer service will help your restaurant succeed.
Measure Satisfaction and Loyalty with NPS Metric
The Net Promoter Score (NPS) is a widely used metric in the restaurant industry. It is obtained by asking customers their likelihood of recommending the restaurant to others through surveys. The survey includes asking customers if they would suggest the restaurant to their friends on a scale of 0 to 10, with ten being extremely probable. In addition to the question, it may include a space for customers to give their opinion.
Invite your guests to answer the survey by sending it to them via SMS, email, app notification, or the restaurant's website.
Additionally, there are some online survey platforms, such as Survey Monkey and Typeform, where you can store data and share information related to the NPS metric.
How to calculate NPS for your restaurant?
Number of promoters - number of detractors total number of responses =(result) x 100
First, add the total number of responses from your promoters (satisfied customers who have given you a score of 9 or 10) minus the number of detractors (dissatisfied customers who have given you a score of 0 to 6) and divide that result by the total number of responses (all responses from 0 to 10). Finally, multiply the result by 100.
Let's imagine that Deliverect is a restaurant that received a total of 100 responses in one week, broken down as follows:
Promoters: 80 (score of 9-10)
Passives: 15 (score of 7-8)
Detractors: 5 (score of 0-6)
Our NPS would be: 75
An NPS score of 50 or above is a good indication of customer satisfaction, and an NPS of 70 or higher is considered outstanding. However, remember that this measure cannot provide a total representation of the whole customer experience.
Achieving a good NPS suggests that your customers recommend you and spread positive opinions about you; this impact is known as word of mouth and is one of the most powerful types of advertising.
According to a Nielsen survey conducted in 56 countries, 88% of respondents trust recommendations from people they know more than advertising.This is why word of mouth is so powerful.
Table Turnover Rate: A Key Metric for Improving the Dining Experience
Imagine a restaurant you love: the food and atmosphere are excellent, but the wait for a table is always too long, which may affect your decision to return.
Restaurants must be aware of their capacity to serve clients at specific times. There are practices and techniques available to increase table rotation and quantify its efficacy, such as the Turnover Rate.
The Turnover Rate is a metric that calculates how many times a table is occupied in a certain period. By regularly measuring it, you can estimate the number of customers you can serve at certain times and adjust waiting times, staff, and reservation systems accordingly.
Do you want to know what your Turnover Rate is? Here are the ingredients:
Determine the number of tables or seats available in your restaurant
Define a period. For example, dinner is from 7 to 10 pm (3 hours)
Estimate the number of tables or seats occupied at that time
Tip: you can use your billing system to calculate it.
Table turnover rate formula:
The number of customers served / number of tables you have available in the defined period = Table Turnover Rate.
Now let's imagine the following scenario for Deliverect's Restaurant
40 customers served at dinner / 10 tables = 4
Tables are frequently turned four times throughout supper.
What is considered a reasonable Table Turnover Rate?
While there is no set number for the appropriate table rotation rate, most experts agree that it should be roughly three times per service in a traditional restaurant. However, turnover may be higher in fast-food restaurants, while in high-end restaurants, it may be lower.
Tips to improve your Table Turnover Rate:
Simplify customer decision-making with a concise menu
Use an online reservation system
Assign more waitstaff to large groups (+6 diners)
Take orders within 3 minutes and stay within 8 minutes
Clean tables within 1-2 minutes of diners leaving
Offer contactless payment options to speed up the payment process
Be attentive without being intrusive
Deal with the issue of customers staying too long politely
Long waiting times often lead to bad reviews. According to Yelp, in 2022, there was a 229% increase in mentions of understaffing and a 24% increase in comments about long wait times.
When running a restaurant, you need to pay attention to two essential things: the numbers (like sales and profits) and how your customers feel. You want your food to taste amazing and make people happy, but you also want them to enjoy the atmosphere and feel like the staff is there for them. It's all about creating a nice vibe and ensuring people have a good time.
Improving Restaurant Decor
Your restaurant's decor can make you stand out from competitors, even if your menu and prices are similar.
A nice atmosphere in your restaurant can make people think the food is better. When people go out to eat, they want both great taste and a great environment. This helps build a strong connection with customers and keeps them coming back.
According to a report from the National Restaurant Association in the United States,
Tips for increasing your restaurant's decor and ambiance:
1. Define a concept for your restaurant.
The chosen idea should be present in aspects such as the design of your menu, the type of decoration, music, and more. Maintain consistency to create and maintain the image of your brand.
2. Add some plants.
Adding some plants will help create a comforting atmosphere, as well as help purify the air and add some humidity. You can use hanging plants, vertical gardens, or potted plants to add a natural touch.
3. Small details can make a big difference.
Small details like table hooks for handbags or a coat rack can be appreciated and add value to the experience.
4. Choose a color palette.
Color psychology says colors can influence someone's mood and evoke emotions. For example, brown, blue, or green colors create a more relaxed atmosphere, and red or yellow stimulates the appetite.
5. Care for the lighting.
Create ambiance by playing with lighting. For example, central lights can provide general lighting, while table or wall lamps can provide indirect lighting at specific tables and areas. Find a balance to encourage menu visibility and not strain customers' eyes.
6. Add some flavor with good music.
Music livens up the ambiance, and it can cushion silences and add warmth. Playing loud, fast-paced, and energetic music can encourage guests to eat quickly, while gentle music will encourage them to linger longer in your restaurant.
The Staff's Role
Without a doubt, your staff is critical to the success of your restaurant and ensuring that consumers return. Personnel roles are similar to grand choreographies, with the steps and rhythm determined by communication skills, hospitality, and training obtained.
It is critical that clients feel welcomed and attended throughout their stay, so finding a balance between quickness and letting them enjoy their experience is vital. Some ideas include:
Offering drinks or snacks while they wait for their food.
Visiting their table one or two times to ensure everything is fine. If the chef, manager, or owner can occasionally do it, it could make customers feel honored.
As much as possible, have the bill printed.
Closing thoughts
To make good decisions for your restaurant, it's helpful to use tools like NPS and turnover rate. These can tell you how customers feel and help you improve their experience. But it's not just about numbers – our emotions matter too. That's why having a friendly atmosphere and attentive staff is important. To succeed, you need a mix of data and good vibes. You want people to choose your restaurant as their favorite spot and keep coming back.