• Restaurant Marketing

Why Customer Segmentation is a Must in Restaurant Marketing

by: Allen Graves
4 min read

In an industry as fiercely competitive as food service, understanding your customer base is not just beneficial—it’s essential.

One of the most effective ways to gain this understanding is through customer segmentation. It’s a strategy that allows restaurants to identify, target, and cater to specific groups within their overall clientele, ultimately contributing to more engaging, successful, and profitable marketing campaigns.

Customer segmentation is the practice of dividing your customers into groups based on common characteristics such as demographics, buying habits, preferences, or behaviors.

These segments can then be targeted with tailored marketing and advertising strategies that resonate with their specific needs and desires. This approach allows restaurants to reach the right people with the right message at the right time, making marketing efforts more efficient and impactful.

customer segmentation for more engaged guests

Why is Customer Segmentation So Important?

Customer segmentation is crucial for effective restaurant marketing because it helps you identify and group your customers based on shared characteristics, such as demographics, preferences, or behaviors.

By understanding these differences, you can tailor your marketing strategies to target specific segments, offering promotions or menu items that are more likely to appeal to them.

This personalized approach not only increases the effectiveness of your marketing efforts but also fosters customer loyalty and satisfaction, ultimately leading to increased revenue and a thriving business.

  • Personalized Marketing: Today’s consumers crave personalization. They appreciate when businesses understand their needs and preferences and cater to them specifically. With customer segmentation, restaurants can deliver personalized marketing messages that resonate with each customer group, improving engagement and ultimately driving more sales.
  • Resource Allocation: Resources are often limited, especially in the restaurant industry. By identifying and focusing on the most profitable or high-potential customer segments, restaurants can allocate their resources more effectively, resulting in a higher return on investment.
  • Improved Customer Retention: Customer segmentation helps restaurants understand the unique needs and preferences of their guests, allowing them to better meet these needs and increase guest satisfaction. This leads to improved customer retention, which is crucial in the restaurant industry where acquiring new guests can cost five times or more than retaining existing ones.
  • Better Product Development: Understanding the preferences and habits of different customer segments can guide menu development and operations innovation. Restaurants can create new dishes or adjust their menus based on the preferences of their key customer segments, leading to offerings that are more likely to be successful.

benefits of customer segmentation

Applying Customer Segmentation to Restaurant Marketing

The first step in customer segmentation is comprehensive data collection. Restaurants must gather as much information as possible about their guests to form accurate segments.

The most effective data collection method is using a customer data platform like Bloom Intelligence, which collects and aggregates guest data from many different sources into one large clean customer database, including:

  • Reservation and online ordering platforms
  • Guest WiFi login pages, also known as captive portals
  • Social media platforms
  • POS systems
  • Website forms, and more.

customer segmentation filters

Once the data is collected, it can be quickly and easily analyzed and filtered to form distinct customer segments. Common types of customer segmentation in the restaurant industry include:

  • Demographic Segmentation: This involves grouping guests based on factors like age, gender, or income level. For example, a fine dining restaurant might target affluent individuals, while a fast-food chain might target younger demographics.
  • Geographic Segmentation: This involves segmenting guests based on their location. A restaurant might target local residents, tourists, or people who work in the area.
  • Behavioral Segmentation: This involves segmenting guests based on their behavior, such as their dining habits, purchase history, visit times, or loyalty. A restaurant might target frequent guests with loyalty programs or occasional diners with special promotions.
  • Psychographic Segmentation: This involves segmenting patrons based on their lifestyle, values, and interests. A health-conscious restaurant might target guests who value fitness and healthy living.

creating a customer segment

Once the customer segments are established, restaurants can develop targeted marketing and advertising strategies for each segment.

This might involve creating personalized email campaigns, tailoring social media content, offering segment-specific promotions, or even adjusting menu offerings.

Customer segmentation is a powerful tool for restaurant marketing. By understanding and targeting specific customer segments, restaurants can create more effective marketing campaigns, allocate resources more efficiently, improve customer retention, and guide product development.

In today’s competitive restaurant industry, customer segmentation is not just a nice-to-have—it’s a must.

Restaurant Customer Segmentation with Bloom Intelligence

It’s time to step up your restaurant marketing with customer segmentation and witness the transformative impact it can have on your business.

Bloom Intelligence is an AI-powered restaurant marketing platform that includes a powerful customer data platform, WiFi marketing, and reputation management tools.

Guest data and reviews are collected from many different sources and aggregated into one single customer database. This makes it simple and easy to analyze and segment your restaurant’s guest personas for automated marketing, implement an efficient reputation management strategy, and discover and bring back lost guests.

Bloom makes restaurant marketing tasks effortless, allowing you to quickly execute your marketing strategy, saving you time, increasing customer lifetime values, attracting new guests, improving your reputation, and boosting your bottom line.

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

Bloom Intelligence Restaurant Marketing Platform


Restaurant Marketing FAQs

What is Restaurant Marketing?

Restaurant marketing is the process of getting people to visit your restaurants. Restaurant marketing creates loyalty, provides data to research, analytics, and allows restaurants to gain a better understanding of their ideal customer profile. It utilizes all customer channels: guest WiFi, website, social, rating sites, mobile apps, email, text, and advertising.

Learn More About Restaurant Marketing Here

What is WiFi Marketing?

WiFi marketing is a marketing technique that uses guest WiFi to collect & clean customer data such as names, emails, phone numbers, customer behavior, and demographics. This data is used to personalize marketing campaigns to increase customer loyalty, build online reviews, and save at-risk customers. The performance of every campaign can be tracked down to the tangible ROI of a customer walking back in your door.

Learn More About WiFi Marketing Here

What is Restaurant Reputation Management?

Restaurant reputation management is the process for restaurants to manage customer feedback and creating systems to improve customer experiences, passively build positive online reviews, and save at-risk customers. It is a very important aspect of running a successful restaurant business.

Learn More About Restaurant Reputation Management Here

How Does Bloom Identify and Bring Back Lost Customers?

Bloom Intelligence uses machine learning to identify at-risk customers. When one is recognized, the system will send them a message with an incentive to get them to return and re-establish their visit pattern. Bloom users are seeing up to 37% of churning customers return.

Learn More About Saving At-Risk Customers Here


What our happy customers
are saying

“SaaS that covered so many bases for us instead of having to use multiple software products. Bloom Intelligence has simplified our responses to reviews, customer feedback, and more. I highly recommend Bloom Intelligence.”

Robert Sanderson

“Bloom Intelligence really is a step ahead in terms of marketing software and metrics. Their product is reliable, fast and innovative and has helped the company I work for really grow.”

John Marchetti

“Working with Bloom Intelligence has been amazing. They assist you every step of the way and work with you hand in hand to make sure you are optimizing your advertising potential. We are excited to use this tool to help learn more about our customers so that we can personally engage with them and understand our strengths/weaknesses.”

Ariel Ramirez

“In these challenging times, it has been a pleasure working with Bloom Intelligence to help facilitate our service offering to our clients. They were extremely responsive and provided support to mitigate risk and minimize revenue loss. Great partner!”

Stefan Kim

“We’re extremely pleased with the wealth of customer data that we’re able to gather, at a very attractive price.  In addition, we’re able to communicate our new product promotions by using  the landing page as a digital billboard.  A “no-brainer” for anyone working with limited Marketing $$.”

Bob Cross, Vice President of Operations

Subscribe Here for the Latest Updates

Never miss a post! We'll keep you up-to-date on the latest restaurant and retail WiFi marketing information.

Drop us a line!

We would love to hear from you! If you have any questions, comments or ideas about our restaurant marketing blog, drop us a line and let us know.

Or call us at 727-877-8181.

Contact Us