Tim Glomb, VP Content & Data, Cheetah Digital
We know by now that the coronavirus pandemic radically changed how restaurants do business. The entire concept of the dining experience, how we eat, and where we choose to spend our money shifted over the last eighteen months. Restaurant owners and employees struggled considerably as pandemic-era restrictions ebbed and flowed for the last 18 months. Restaurants have been limited in the services they can offer and we have witnessed a 99.77% decrease in seated dinners since 2019.
These drastic changes have revealed one thing for the restaurant industry: it’s sink-or-swim time for restaurant owners. Even if restaurants survived the pandemic, these next months are critical in their overall success rate. Here’s the good news: our study at Cheetah Digital revealed that restaurants can win this post-lockdown battle if they focus on building trust with their customers.
Pandemic-related changes in the industry are likely to stick around, and the best bet for restaurant success is to quickly adapt to these ever-changing times. Some restaurants are better equipped to handle industry changes than others. Large-scale chain restaurants with considerable digital infrastructure likely had the tools to switch to virtual ordering systems, but small, family-owned restaurants struggled. Fortunately, there are clear steps restaurants can take to bounce back and thrive post-pandemic.
Focus on loyalty and brand trust
The best way to cultivate a relationship with customers post-pandemic is to focus on generating loyalty. According to our study of consumer trends, 24% of consumers say they are not loyal to a particular brand simply because that brand has not done anything to cultivate their loyalty. Restaurants that neglect the customer loyalty aspect of business are missing out on a massive opportunity. The same study showed that 64% of restaurant consumers are prepared to pay more to purchase from a brand that they trust.
Next-generation loyalty is not as easy as free products upon the customer’s tenth visit or a simple discount code applied after a certain amount of money is spent. Next-generation loyalty requires restaurant brands to get to know their customers as the individuals they are and provide multiple points of contact to ensure that customer desires are met. Product differentiation and market domination are inefficient loyalty strategies in our fast-paced world of countless options. Brands will find more success by interacting with customers at an individual level. These intentional relationships will yield a greater ROI.
Gathering accurate data to communicate clearly
Our study showed that 51% of restaurant-goers have downloaded an app for their favourite restaurants, proving that more direct communication is key to engaging customers. An app-based communication strategy can help generate loyalty and trust because it offers an easy point of entry for consumers to interact with your brand.
Clear communication will fall flat, however, if it is not based on accurate information or assessment of consumer desire. Our study showed that 40% of data records contain inaccurate information. A brand’s loyalty initiatives will ultimately fall flat if data is inaccurate. Through the use of technology, companies can shift away from typical third-party data collection—that only provides basic and often inaccurate information—and shift toward consumer-driven data collection. Restaurants should use a zero-party based data collection strategy to drive their understanding of consumer behaviour and to inform their communication strategy. In the most simple of terms, restaurants should ask customers directly about their preferences as it pertains to products, experiences, and communication.
The restaurant industry can recover from the coronavirus pandemic and the subsequent industry changes. Restaurants and dining brands must focus on consumer behaviour and accept the changes that came as a result of the pandemic. Building a trust-based relationship with the consumer will cultivate long-term relationships and promote success in business.
