The restaurant industry has always been wildly competitive, but the customer acquisition landscape is evolving rapidly, and restaurant owners need data-driven strategies to keep up.
Customer acquisition is crucial for restaurants, as it directly contributes to revenue growth, competitive advantage, and brand loyalty and awareness. But it’s a dynamic channel. Customer acquisition is an ongoing process that requires strategic planning, effective marketing, and a commitment to providing remarkable dining experiences for your customers.
In this blog, you’ll learn more about how customer acquisition strategies have shifted, the challenges restaurants face, and data-driven strategies restaurant groups can implement to reach their target audience.
The evolving landscape of customer acquisition for restaurants
Restaurant owners have a lot on their plate, from staffing shortages to the rising cost of food. However, the most pressing challenge restaurants face is acquiring and retaining customers.
Traditionally, restaurants heavily relied on word-of-mouth, location visibility, and traditional marketing to attract new customers. However, the digital revolution has proved to be a challenge for restaurants that want to attract new patrons.
Thanks to social media and smartphones, today’s consumers are more connected and informed than ever before. How consumers find new restaurants is changing, and restaurants need to meet their customers where they are. This means that restaurants must engage with potential customers across multiple digital platforms while still maintaining the highest standards of service and quality in their physical locations.
Restaurants must now focus on building a strong online presence, leveraging social media effectively, and providing seamless digital experiences to stand out in a crowded market.
3 acquisition challenges restaurant groups face today
This new age of digital marketing is a great opportunity for restaurants to broaden their reach and welcome more customers through their doors, but it also poses many challenges. Here are the 3 main challenges restaurants face when acquiring new customers.
1. Third-party delivery services
The restaurant industry has always been intensely competitive, but it’s not just restaurants going head to head now. Third-party delivery services became the go to option during Covid and remain a popular option today for convenience. In October, 77% of consumers reported ordering delivery and 76% reported picking up takeout.
While third-party delivery services in many cases are not cost-effective for restaurants, the biggest issue is the customer relationship is with the delivery service vs the restaurant. The key customer information remains with the delivery service so the restaurant can not use it to contact or market to the customer.
2. Managing online reputation
Another challenge is managing an online reputation, which has become much more time consuming and complex in today’s environment. Review platforms like Yelp and Google have been around for a long time, but today, they are much more powerful. When you factor in monitoring and handling all the social media channels, managing your restaurant\’s online reputation can be a job in itself.
Reviews are critical to a restaurant\’s success. Consumers turn to reviews to help make their dining-out decisions. More than 33% of restaurant goers will not eat in restaurants with less than a 4-star rating on Yelp, Google, or TripAdvisor. In addition to this problem, a lower rated restaurant will also be impacted on search results by showing up in a lower position compared to higher ranked competitors.
3. Cost of digital marketing
The cost of digital marketing can be a barrier for many restaurants, especially smaller establishments. Effective digital marketing requires a significant investment in both time and money—you can’t just click a button and make money on ads. You must take the time to create engaging content, craft unique creative, and understand the ins and outs of running targeted ad campaigns.
Digital advertising is just one sector of digital marketing. Restaurant owners must also factor in website development costs, search engine optimization (SEO), email/SMS marketing, social media marketing, and loyalty programs. This means that for restaurant groups with multiple locations, coordinating and executing a unified marketing strategy across different markets can be complex and resource-intensive.
Data-driven strategies to reach today’s consumers
Despite these customer acquisition challenges, data-driven strategies offer powerful solutions for enhancing customer acquisition in the restaurant industry. By leveraging customer data, restaurants can create personalized marketing campaigns that resonate with specific audience segments. Here are 3 data-driven strategies restaurants can use to boost their customer acquisition strategy.
1. Analytics and first-party data
Data is king—without it, you\’re simply throwing ideas at the wall and hoping one or two stick. Traditionally, organizations have relied on platforms like Google Ads or Meta as their primary acquisition channels, but data protection laws have limited businesses from tracking and accessing customer data. Today, restaurants need to turn toward first-party data, which refers to information collected directly from customers.
First-party data will be the foundation of your customer acquisition strategy. It will directly inform your marketing campaigns and personalization strategies and will be critical in the quest to form long-lasting customer relationships. There are a few ways to collect first-party data:
- Alternative growth channels: Platforms like Nift allow restaurants to tap into first-party data and geo-targeting. This allows restaurants to attract customers where traffic is needed most and grow their database with name, email, and opt-in permission to re-market.
- Customer surveys: Customer surveys allow your guests to share their thoughts and give feedback about their restaurant experience. You can ask your customers how they found your restaurant, their favorite menu items, demographic details, and more. You can offer them a discount once they complete the survey to sweeten the deal.
- Direct online orders: This allows the restaurant to collect the customer data not only to fulfill the order, but also to communicate with the customer as part of an email marketing strategy.
2. Personalized Marketing
Personalization is the golden ticket to success in the restaurant industry. It’s more than just an eCommerce buzzword, 75% of American consumers say they’re more likely to be loyal to brands that understand them on a personal level.
Personalized marketing is all about tailoring your messaging and campaigns to meet your audience\’s needs and preferences. Restaurants can use data from email, social listening tools, and prior visits to uncover customer’s dining preferences, interests and which menu items they enjoy. Here are some of our favorite personalized marketing strategies for restaurants:
- Personalized emails and text messages: Any restaurant can send a generic Happy Hour email, but addressing your customers by their names in emails and text messages can elevate your communication.
- Segmentation: Divide customers into groups based on common characteristics and preferences like dietary restrictions or order history to target consumers with personalized offers and promotions.
- Special occasions and celebrations: Surprising your customers with a free drink or dessert on their birthday or anniversary is a great way to create a deeper connection with them.
Personalization makes your customers feel valued, and that appreciation can go a long way toward improving your bottom line.
3. Loyalty programs
A loyalty program offers customers rewards and discounts as a ‘thank you’ for supporting your restaurant. Restaurants typically offer a point-based program that rewards customers after spending a certain amount of money.
Loyalty programs are an easy way to show appreciation for your patrons, and the data proves that customers enjoy them. According to a survey by Statista, seven out of 10 Americans consider loyalty programs a leading factor in securing loyalty towards their favorite brands1. Specifically for restaurants, here are some relevant statistics:
- The percentage of customers who use at least one restaurant loyalty program increased from 43% to 47.4%.
- Customers would increase their spending at a restaurant by 35% if it offered a compelling loyalty program.
- 73% of customers would recommend a restaurant with a good loyalty program to friends and family.
The National Restaurant Association also states that repeat customers account for up to 71% of sales in some fine-dining restaurants and around 50% in casual dining establishments. A study by Toast Tab found that restaurant loyalty program members spend 39% more on average during the month of their birthday. These findings highlight the effectiveness of loyalty programs in driving customer engagement and business growth.
Aside from profits and brand recognition, loyalty programs offer deep insight into customers\’ preferences. They capture customer-level data so your restaurant can make more informed decisions regarding marketing campaigns, menu offerings, and promotions or discounts.
A new way to acquire life-long customers
As traditional acquisition channels become less effective, restaurant groups must consider alternative growth channels to increase foot traffic and acquire new customers. That’s where Nift Advertising for Restaurant Groups shines. Restaurant groups use Nift as a cost-effective, 100% trackable net-new customer acquisition channel to lower their CPA, hit ROAS targets, and grow their database with first-party data collection.
Learn more about how Nift Advertising for Restaurant Groups can seamlessly integrate into your acquisition strategy, and request a demo here.
About the Author
Brian Siemienas is a seasoned marketing professional with over 25 years of experience in the restaurant, hospitality, and entertainment industries. As the Vice President of Restaurant Solutions at Nift, Brian is passionate about driving customer acquisition and enhancing restaurant traffic.
Before Nift, Brian’s tenure included leading marketing for brands like Darden, Margaritaville, and Hard Rock. Most recently, he was the CMO at IMCMV, overseeing 28 Margaritaville and Landshark Bar & Grill restaurants across the United States. Brian orchestrated a symphony of brand strategy, communications, partnerships, advertising, creative development, public relations, loyalty programs, and digital/social media in this role. Brian’s fingerprints are all over the success of these iconic establishments.
When Brian isn’t shaping marketing landscapes, he calls Orlando, FL, home. An avid theme park enthusiast, he explores local attractions, travels, and passionately follows college and NFL football. Brian holds a Bachelor’s Degree in Telecommunications and a Master’s in Mass Communications from the University of Florida.
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