The restaurant industry is undergoing an extreme transformation, with technology becoming an integral part of the dining experience. To stay ahead of the competition and meet their customers’ ever-changing needs, restaurant groups must continuously innovate and optimize.
The digital customer experience is crucial for driving customer loyalty, increasing revenue, and enhancing brand reputation. This blog explores key strategies for restaurant groups to revolutionize the digital customer experience, including personalized digital menus, loyalty programs, and artificial intelligence (AI).
Personalized Digital Menus and Ordering Systems
Every positive dining experience starts with the menu. Leaders often discuss optimizing marketing strategies and internal operations, but menu optimization is critical to a restaurant’s success. A well-optimized menu increases customer satisfaction, improves the ordering process, drives sales, and attracts new customers. All restaurant menus should be:
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Clearly labeled: 68% of diners prefer menus to list all dish ingredients. That doesn’t mean you have to list a pinch of salt and pepper, but the main ingredients and those that may not be expected should be included in all drink and food items.
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Simple to understand: Menu item description is the most crucial menu factor for restaurant goers. Item descriptions should be clear and concise and leave the reader with no further questions. Don’t overwhelm the reader with a paragraph describing a burger; instead, create a narrative that makes their mouth water.
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Easy to read: If your menu isn’t easily decipherable on a mobile device, you’ll lose out on potential customers. Along with mobile optimization, ensure that your menu layout makes sense. Clearly label drinks, appetizers, main dishes, and dessert items and accompany them with prices.
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Visually appealing: Use high-quality images of your food throughout the menu to entice customers to try your dishes. But don’t use a stock photo; use images that accurately represent your dishes.
- Catering to customer preferences: 52% of diners struggle to eat out at restaurants due to dietary restrictions and preferences. Make it easy for customers to go out and enjoy a meal! Consider offering various gluten-free, lactose-free, vegan, vegetarian, and nut-free menu options.
The accessibility of your menu dramatically impacts your chances of attracting new customers because today’s diners do their due diligence before going out to eat at a restaurant. A survey found that 83% of US diners review the menu beforehand, and half decide what to order before arriving! Menus should be readily available online so customers can make informed choices, whether they are planning to order food to go or dine in.
Seamless and frictionless online ordering systems are equally crucial. They should not require customers to set up an account or download an app to place an order; integrating multiple payment options and customizable items can make the process more convenient and enjoyable for customers.
Top Restaurants Embracing Digital Transformation
Food and dining industry advancements are forcing restaurants to think creatively and reimagine the customer experience. Two major restaurant chains, Chick-fil-A and Starbucks, are turning heads with their innovative customer acquisition and retention strategies.
Chick-fil-A has gone full steam ahead with its digital initiatives, implementing in-house mobile ordering, geofencing technology, dedicated mobile-only drive-through lanes, and artificial intelligence to analyze data quickly. Customer preferences and the increasing desire for convenience drive their digital transformation.
Another success story is Starbucks, which has consistently leveraged technology to enhance the customer experience. The Starbucks mobile app allows customers to order and pay ahead, customize their drinks, skip the line, and earn rewards seamlessly. This focus on digital convenience has significantly contributed to the brand’s loyal customer base and overall customer satisfaction.
Along with implementing advanced technology, successful restaurant groups have one thing in common: they meet customers where they are. Every campaign and strategy is created to enhance the customer experience and delight customers at every step.
Engage Customers With Innovative Loyalty Programs
Loyalty programs aren’t a new concept, but they remain a powerful tool for engaging customers and encouraging repeat business. 57% of restaurants offer rewards and loyalty programs, while 41% of consumers say loyalty programs encourage them to buy from restaurants (per Paytronix and PYMNTS’ 2022 Restaurant Friction Index).
To acquire new customers and improve the customer experience, restaurant groups can leverage advanced technology to create innovative loyalty programs that go beyond traditional points-based systems.
For example, if you have a mobile app, fully integrate it with your loyalty programs to provide customers with real-time updates on their rewards and personalized offers based on their preferences and past behavior. Gamification elements, such as challenges and badges, can make the loyalty program more engaging and fun. Personalize the customer experience with targeted offers for special occasions like birthdays, anniversaries, new menu items, or member-only exclusive offers to encourage loyalty and repeat purchases.
The most successful restaurant loyalty programs have a few characteristics in common:
- Easy to use: Mobile apps seamlessly synchronize data so customers can get points automatically, or a phone number can be provided if their app is not handy. Earning points and redeeming rewards should require minimal effort on your customer’s part.
- Personalized: Rewards should be tailored to customer preferences to incentivize repeat purchases. Exclusive rewards and menu items for loyalty customers are great ways to encourage both purchases and loyalty sign-ups.
- Attainable rewards: Don’t make it too difficult to earn rewards! If it takes a regular customer 20+ purchases to become eligible for a reward, they won’t be inclined to dedicate purchases to the program.
CMOs Can Use Data To Tailor Rewards and Promotions for Repeat Diners
Loyalty programs are a win for your customers and can be a significant win for your bottom line. They are a rich data source you can use to learn more about your customers and their preferences so you can tailor the customer experience to meet their needs.
Data analytics plays a crucial role in understanding customer behavior and preferences. Chief Marketing Officers (CMOs) can harness this data to tailor rewards and promotions for repeat diners, ultimately enhancing their experience and loyalty. CMOs can use data to:
- Identify patterns and trends: Patterns and trends, such as frequently ordered items, peak ordering times, and preferred dining locations (if applicable), can be used to create personalized rewards and promotions that cater to individual preferences.
- Segment audiences: Just as you would segment your advertising audiences, you can also segment your loyalty program users. You can segment customers based on their purchase frequency, noting whether they are active, inactive, or steady repeat purchasers. CMOs can adjust their strategies to target lapsed customers and reward their loyal customers.
- Adjust your program: As consumer needs change, loyalty programs must adapt, too. For instance, you may survey your loyalty program customers to get feedback. Perhaps the rewards are too complex to redeem, so customers aren’t incentivized to make additional purchases. Data can help CMOs pinpoint what areas of their restaurant loyalty program need to be adjusted to improve the customer experience.
Tailored rewards make customers feel valued and encourage repeat visits and increased spending.
Artificial Intelligence is Driving Personalized Marketing Campaigns
AI has revolutionized the way businesses analyze customer behavior and preferences. AI can provide valuable insights into customer patterns for restaurant groups, enabling more informed decision-making and hyper-personalized marketing campaigns.
Using AI, restaurant groups can deliver highly targeted promotions and recommendations to customers most likely to appreciate them. For instance, customers who frequently order vegetarian dishes could receive tailored promotions for new menu items or invitations to exclusive plant-based events from AI-powered recommendation engines.
It’s Time To Put Nift On The Menu
CMOs can leverage AI-driven insights and customer-centric data to create highly personalized marketing campaigns; platforms like Nift can be instrumental.
Nift is a closed ecosystem that drives traffic to your restaurant by offering personalized ‘thank you’ gifts to consumers at the surprise and delight moments. Nift’s platform harnesses the power of AI to strengthen restaurants’ customer acquisition strategies in many ways, including:
- Trackable acquisition: Every new customer and transaction is tracked with 100% footfall attribution.
- Cost and time-effective: Nift is considerably cheaper than digital ads and is a 100% managed service. We do all the heavy lifting, including creating assets and optimizing conversion strategies, so your team can focus on other areas of the customer experience.
- First-party data and Geo-targeting: Bring in customers where traffic is needed the most and grow your database with name, email, and opt-in permission to re-market.
- Easy to process: No point-of-sale (POS) integration is needed with Nift, so your service team processes Nift like other promos.
- Transparency: We value transparency, so you always know what’s happening and where customers are within the funnel.
By implementing Nift’s innovative gifting model, restaurant groups can save time and money by replacing an ad-heavy, costly marketing strategy and start welcoming more customers through the door. Schedule a demo with our team to learn about Nift Advertising for Restaurant Groups.
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.
