Category: Customer Segmentation

Guest Segmentation to Fuel Your Restaurant Marketing Campaigns

The restaurant and coffee shop customer marketplace is more crowded than ever.

Every time a potential client opens a website on their desktop browser or smartphone browser, social media platforms, entertainment apps, and even productivity apps, they’re faced with all kinds of marketing messages.

How do you get the right eyes on your marketing content to promote your business effectively?

Successful restaurant and coffee shop marketing is essential for staying competitive in a highly populated industry. No matter where you’re located, you probably have to contend with various other competitors offering similar products to yours.

Like the competition for successful marketing, competition to successfully draw customers to your restaurant or coffee shop (and away from your direct competitors), should be top-of-mind.

After all, marketing is an ongoing process. You have to stay competitive and stay present on various internet platforms in order to attract clientele.

Thankfully, there are powerful marketing strategies that you can utilize to your ultimate benefit. Customer segmentation, or guest segmentation, is a particularly excellent way to boost the return on investment from your restaurant’s marketing budget.

Customer Segmentation for Restaurants and Coffee Shops

Collecting Guest Data for Customer Segmentation

It is impossible to accurately segment your customer base into various groups without comprehensive, dependable, and clean data. Firther, the data should be collected from multiple sources, such as:

  • WiFi engagement
  • Websites
  • Social media
  • POS systems
  • Rating and review sites
  • Reservation systems
  • and online ordering platforms

By collecting your guest data from many different sources, you will begin to get a full 360-degree view of your guests. Each of these data collection channels can give you different data points to use when you begin to segment your database.

Before we dive into data collection, let’s discuss the basics of guest segmentation.

What Is Restaurant Guest Segmentation?

Customer segmentation is a marketing strategy of “segmenting” your current or potential customers into distinct groups (market segments) and then marketing your business to them using focused, group-specific messaging.

Customers are split into groups based on their demographic data–age, geographic location, gender, etc.–and their behavioral and psychographic data–what online content they interact with, how they behave at your place of business, and their perceived interests.

These groups are called customer segments, and each segment has its own persona. And different personas like to be marketed to in certain ways.

Based on marketing research, when you engage with clients with unique, individualized methods, you’re more likely to garner interest and ultimately draw leads to your business.

Marketers can successfully collect segmentation data, then optimize their marketing campaigns based on which “segments” they’re addressing with a given advertisement, social media post, email, or SMS.

Customer Segmentation Guide for Restaurants and Coffee Shops

How To Group Your Customers?

You might wonder how the power of today’s technology can help you split your guests into these segments. The answer lies in customer data collection.

As discussed already, there are ways to retrieve data to form customer profiles, which help you understand your customers better. Then, you can subdivide your customer database into verious segments.

You can also use software to collect and analyze data for much less than outsourcing these services to an agency. Check out the Bloom Intelligence Restaurant Marketing & Customer Data Platform to see it in action.

Once you collect your guest data, you can sort and filter guest profiles to view your new grouped segments. Then, use this information to create targeted marketing messages. Fine-tune your current marketing strategies or devise new ones to personalize the guest experience.

Why Send Different Marketing Messages to Different Segments?

The ultimate goal of customer segmentation is to adjust your messaging to appeal to different segments. Customer segmentation helps certain demographic-specific businesses find their customers among the highly populated masses online.

For instance, cosmetic companies are probably looking for young, female clients that are particularly interested in beauty products. They’ll market themselves exclusively to this relevant segment.

Similarly, a skateboarding company knows that it isn’t relevant to the population at large. They will try to find relevant clients in urban teenagers and young adults.

So, marketing their products to seniors and middle-aged business people would produce little return on investment. Therefore, these companies would be wasting their marketing budgets without using effective customer segmentation.

The restaurant industry, meanwhile, has mass appeal. You aren’t necessarily looking to narrow down your audience as much as fine-tuning the voice of your marketing strategies to speak to different restaurant guests.

The voice of your marketing messages should be very different for older business people as it is for teenage skateboarders, but the message at the root of your strategy is the same: people should come to your restaurant!

Learn the Value of Customer Profiling

What the Studies Show

Studies show that guest segmentation works, and actually improves the customer experience, too.

CMO.com states that on average, advertisements targeted to unique customer segments are twice as effective as broad-audience, non-targeted ads. And, in fact, the Federal Trade Commission reports that almost 70% of polled consumers actually prefer marketing that is tailored to their interests.

Customer segmentation isn’t just powerful; it’s popular.

Your direct competitors may very well be using this strategy. So, to stay competitive, you should as well.

How to Use Guest Segmentation

In the restaurant and coffee shop marketing industries, guest segmentation has plenty of benefits. First, you can use this tactic to improve messaging. Messaging refers to your approach to communication with your audience.

How do you engage guests and highlight the value of your restaurant? Modify your voice to speak to different segments of your customer base.

For example, if your restaurant has a formal, sophisticated ambiance, you might use professional language and elegant imagery to appeal to an older, higher-income segment of your audience.

Meanwhile, you can appeal to a younger, lower-income segment with more relaxed language and references to date nights or other special occasions.

Marketing messaging for your restaurant can be playful, refined, value-focused, or even exclusive – all based on the segment you’re speaking to.

Guest Segmentation for Advertising and Remarketing

You can use customer segmentation for remarketing on Google and other search engines. Identify profiles of users who have already visited your website or taken specific actions, like placing an online order or reservation, or those who logged into your WiFi.

Then, serve advertisements and other marketing messages to “remarket” toward these clients. The goal is to create lifetime customers who keep coming back.

Restaurants can also advertise with “lookalike” campaigns on Facebook, Instagram, and other popular platforms to increase engagement and appeal to new clients. This strategy identifies segments of existing customers–those who have already visited your website–and then targets digital profiles of similar segments.

For example, if you have a large population of college students that visit your website (and your restaurant), social media platforms can identify other college students in the area and market your restaurant to them, aiming to appeal to these lookalike profiles.

Just remember to adjust your messaging for these audiences!

Using Social Proof to Get More Customers

Automate Data Collection and Guest Segmentation with Bloom Intelligence

Customer segmentation may seem like a difficult strategy to implement. Unfortunately, it can be very difficult to collect and analyze the data you need in order to segment clients without the use of a WiFi customer intelligence platform like Bloom Intelligence.

You can either hire a third-party marketing company to track customer data–a potentially expensive option–or save money and use Bloom to collect large amounts of customer data for you.

With Bloom, you can quickly and easily segment clients yourself and create targeted automated marketing strategies for much less. This saves money and time, increases customer lifetime values, brings new guests, improves your reputation, and increases your bottom line.

To see more of what Bloom can do for your restaurant or coffee shop marketing, schedule a free demo today, or call us at 727-877-8181.

How Restaurant Ratings Affect Your Business

In the business world, it’s true that perception is reality. For restaurants, a high overall customer rating and great reviews can translate into many more customers, higher customer lifetime values, and a better bottom line.

Conversely, negative ratings may mean fewer people coming in and lower revenue for your establishment. The effects of bad reviews can have a significant impact on the success of your restaurant.

For this reason, it’s critical that you pay attention to your restaurant ratings and reviews. With the right strategies and tactics, you can improve your rating faster and more effectively than you might imagine.

Click on the banner below to register for our webinar, “Automating Ratings & Reviews Requests and Measuring Customer Sentiment” and learn how to automate the process of getting more positive consistent ratings, how to measure customer sentiment to improve marketing and operations. We’ll show you how to bring it all together to improve customer lifetime values, get more new customers, and increase your overall revenue.

The Numbers: Restaurant Ratings and Reviews

Here are several statistics to reveal just how powerful positive restaurant ratings can be in today’s marketplace.

According to Modern Restaurant Management, an increase of just one-star rating can give a business an approximate 5-9% increase in revenue. And an increase of just one-half star would likely fill your seats during peak business times.

They also reported that 34% of diners choose a restaurant based on peer review websites.

And 53% of 18-to-34- year-olds reported that online ratings and reviews factored into their dining decisions, as do 47% of frequent full-service customers.

The importance of online ratings and reviews has been shown to have a direct impact on revenue. Consumers are likely to spend 31% more at a business with excellent reviews. Imagine what this could mean for your bottom line.

Trust is key for restaurant customer loyalty, and according to BrightLocal.com, a whopping 72% of consumers say that positive reviews make them trust a local business more. This shows just how important ratings are to local businesses. Restaurant reputation management is a business function that simply cannot be ignored.

What is the industry that most people read online reviews? You guessed it – restaurants. MRM reported that 61% of consumers have read online reviews about restaurants – more than any other business type.

To add to that, according to Upserve, 90% of guests research a restaurant online before dining—more than any other business type in their study. And, 57% of those guests viewed restaurant websites before selecting where to dine.

This further highlights the growing importance of garnering consistent, positive ratings and reviews.

Upserve further went on to support all of these statistics revealing that:

  • 92% of consumers read restaurant reviews.
  • 77% prefer peer reviews versus critic reviews.
  • 33% would never eat a restaurant with less than four stars.

Start Managing Your Ratings and Reviews Today

The success of a restaurant, its owner, or franchiser is heavily dependent on the ratings and reviews it receives from customers.

In today’s marketplace, where consumers are more reliant than ever before on online ratings and reviews for their dining decisions, there has never been a better time to focus your efforts on getting positive consistent ratings for your establishment.

We hope you found these statistics insightful and want to learn how you can improve customer lifetime values by focusing on building up an excellent reputation in this competitive industry.

Our team would love to help you automate the process of getting more positive consistent ratings and reviews, as well as to measure customer sentiment so you can start improving your restaurant reputation immediately!

Which stats did you find most interesting? Let us know below – we’d love to hear from you!

To see more of what Bloom can do for your restaurant or coffee shop marketing, schedule a free demo today, or call us at 727-877-8181.

Guide to improving your restaurant ratings and reviews

Restaurant Customer Segmentation to Improve Your Marketing

Restaurant Customer Segmentation Example

Restaurant customer segmentation is incredibly valuable to a strategic marketing program. It increases ROI and improves guest experiences.

When you know who your guests are, you can segment them according to their similarities and differences, then your marketing messages can target each group with appropriate and specific messages that will best engage them.

No matter your call to action — a return visit, a Facebook like, or something else — a targeted communication approach will be more successful than blasting the same message to every guest in your database.

In addition to calls-to-action, segmentation and target marketing will better engage your patrons, build loyalty, increase customer lifetime value, and improve your return on investment.

Here’s how it might work.

Let’s say you have identified a customer segment that dines with you once a week. These loyal guests might enjoy a special perk or coupon for referring friends or writing a restaurant review on Google.

Customer buying history provides another option for segmentation. Think how special your guests will feel if you communicate to them about the things they purchase from you.

For example, a restaurant’s steak lovers will love to hear from you about a new menu item with a unique preparation or cut.

When you integrate customer segmentation data with point-of-sale data you have a golden egg.

For instance, customers love your gratitude for their patronage. Sending an email thanking a guest shortly after a visit to the restaurant, and including a targeted promotion, will likely yield higher success of the offer than sending the same promotion at a random time.

When you have access to a tool that can show you both customer spending habits and visit frequency, you have all you need to create some simple but powerful campaigns based on basic restaurant customer segmentation.

Since your high-frequency / low-expenditure customers are unlikely to increase their visit frequency, you can send them offers to encourage them to try new items or add an appetizer or dessert. Meanwhile, promotions for your big spenders can be focused on getting them to return more often.

The more you know about your guests the more ways you can segment your database to appeal to their individual preferences.

Targeted messages make for more loyal customers. Loyal customers make for higher customer lifetime values. Higher customer lifetime values make for more profitable restaurants.

Restaurant Customer Segmentation Guide