• Restaurant Marketing

Restaurant Customer Lifetime Value

by: Allen Graves
6 min read

Every restaurateur dreams of packed tables, satisfied guests, and a brand that resonates with a broad audience.

However, beyond the allure of immediate gains lies the essential yet often overlooked cornerstone of sustainable business growth: understanding the true value of each guest.

The restaurant world is driven by numbers that hold the secret to long-term success. One such critical number is the Customer Lifetime Value (CLV).

Instead of focusing solely on the daily footfall or the weekend rush, delving into the deeper, long-term relationship with each guest provides a holistic view of your restaurant’s health and potential.

Here we will explore the concept of CLV, its profound impact on business strategies, and how restaurateurs can harness its power to ensure not just immediate success but enduring growth.

Understanding Restaurant Customer Lifetime Value (CLV)

At its heart, CLV represents the total net profit a restaurant can expect from a guest across all their interactions with the restaurant.

This isn’t about a single transaction. Instead, it combines their average spend per visit, how frequently they dine-in or order online, and the longevity of their loyalty.

For example, a regular who spends $30 every visit, comes in monthly, and returns for five years would have a CLTV of $1,800 ($30 x 12 x 5).

Calculating CLV is not just a number-crunching exercise but a window into understanding the deeper patterns and potentials of guest behavior.

A firm grasp of these metrics, coupled with actionable strategies, can greatly influence sustainable and profitable growth in the restaurant industry.

The Value of CLV in Restaurant Growth

CLV can be a crystal ball, offering glimpses into future revenue. If you know the lifetime value of your guests, you can predict your potential earnings from them and run your business with more clarity.

Then there’s the matter of resource allocation. When a business recognizes the long-term value of a customer, it can determine how much should be invested in acquiring and retaining them.

This helps in streamlining marketing budgets. For example, spending $100 to acquire a guest worth $1,800 in CLV is a smart investment.

Moreover, CLV provides a broader perspective on customer segments. Some might have higher values than others. By understanding this differentiation, restaurants can create more targeted restaurant marketing strategies or promotions.

It becomes a balance between attracting new faces and keeping the regulars happy, which, in many cases, is much more cost-effective.

Lastly, CLV is an essential backdrop against which many business decisions play out. Planning to introduce a new dish, designing a loyalty program, or even considering a new location? Knowing the CLV can provide actionable insights into these decisions.

Strategies to Boost CLV

An outstanding dining experience is the cornerstone. It’s not just about the food. The ambiance, the service, and even the small personal touches play pivotal roles.

When guests are satisfied, surprised, and delighted, they’re more likely to return and also spread the word.

Loyalty programs, though a staple, need to be thought out. The idea is to reward consistency, making your regulars feel valued. This could be through discounts, point systems, or exclusive offers.

Engagement is more than just transactions. It’s about building a relationship. Utilizing guest data analytics to send tailored restaurant email marketing campaigns adds a personal touch, enhancing the relationship.

Feedback is gold. Addressing concerns or negative reviews promptly makes guests feel valued and heard. It’s also an avenue for continuous improvement.

Innovation is key in the culinary world. A seasonal menu or a themed night can not only refresh the dining experience but also attract guests who haven’t visited in a while.

Additionally, being an active participant in the local community can foster loyalty and present the restaurant as more than just a business – as a part of the community’s fabric.

The Customer Lifetime Value is not just a number—it’s an approach to doing business. In the restaurant world, where experiences count as much as the dish itself, understanding, and optimizing CLV can pave the way for sustainable growth.

Using Bloom Intelligence to Boost CLV

Bloom Intelligence is an AI-powered restaurant marketing platform that includes a powerful customer data platform with detailed guest analytics, automated data collection, marketing automation, and reputation management tools.

Guest data is collected from many different sources and aggregated into one single platform, making it simple and easy to analyze and segment your restaurant’s guest personas for your restaurant email marketing.

Data is collected from sources like WiFi logins, online reservation systems, online ordering platforms, POS systems, website forms, and more.

Modern solutions, such as Bloom Intelligence, leverage sophisticated technology to provide insights that are reshaping how restaurants connect with their guests.

Here’s how Bloom Intelligence can be instrumental in enhancing the Customer Lifetime Value (CLV) for restaurants:

1. Wi-Fi Marketing and Analytics

One of the standout features of Bloom Intelligence is its ability to convert restaurant WiFi into a potent marketing tool. Bloom captures data that, when ethically and correctly analyzed, provides a wealth of information about guest behavior, frequency of visits, dwell time, and more – whether guests log into WiFi or not.

This data becomes the bedrock for understanding guest patterns, and tweaking services, messaging, or offerings accordingly.

2. Personalized Engagement

Armed with data-driven insights, restaurants can craft more targeted and personal communication. Bloom Intelligence allows businesses to segment their customers based on various criteria.

For instance, a restaurant could send a special offer to patrons who haven’t visited in over a month, or perhaps a discount code to someone celebrating a birthday.

This level of personalization fosters deeper connections and encourages repeat visits.

3. Feedback Mechanisms

Bloom Intelligence provides tools that make it easier for restaurants to gather guest feedback. Immediate, post-visit surveys can be sent to guests, providing real-time insights into their dining experience.

Such timely feedback is invaluable in addressing concerns, improving service, and ensuring guest satisfaction—all critical components for boosting CLV.

4. Predictive Analytics

By analyzing trends in the captured data, Bloom Intelligence offers predictive analytics capabilities.

This means restaurants can forecast customer behavior, anticipate busy periods, and even understand potential churn. Having this foresight allows for better planning, staffing, and promotional activities.

5. Loyalty Programs 

Bloom Intelligence has a built-in loyalty program that can be quickly and easily configured. When a guest visits your restaurant a specified amount of times, a message can be sent with a redeemable code.

By understanding customer preferences and behavior, loyalty offers can be made more enticing, further driving repeat business and higher CLV.

6. Churn Prevention

Through its analytics and powerful machine learning algorithms, Bloom can identify potential churn risks—customers who might be drifting away or have already stopped doing business.

By flagging these individuals, restaurants can implement strategies or offers to re-engage them, ensuring they remain connected to the brand. Bloom users are seeing up to 37% of their churned guests return.

7. Reputation Management

Managing a restaurant’s reputation is crucial in the age of digital discourse, where a single review can sway potential diners. Bloom Intelligence provides restaurants with the tools to actively manage and enhance their online reputation. Bloom allows restaurants to capture the pulse of customer sentiment in real time.

Using AI, Bloom can automate review replies, ensuring prompt and appropriate engagement, saving you time and resources.

A strong, positive online presence not only attracts new guests but reinforces trust and loyalty among existing ones, directly elevating the CLV.

8. Comprehensive Reporting

Bloom Intelligence provides detailed, user-friendly reports. Whether it’s tracking the success of a particular campaign, understanding peak business times, or analyzing demographic data, these insights empower restaurants to make informed decisions, enhancing their overall strategy and directly impacting CLV.

In a nutshell, Bloom Intelligence isn’t just another analytics tool. It’s a comprehensive ecosystem that bridges the gap between the digital and physical worlds of a restaurant’s operations.

Leveraging its capabilities can provide restaurateurs with unparalleled insights into their customer base, directly influencing strategies to boost Customer Lifetime Value.

Bloom makes guest data collection effortless, allowing you to quickly execute the strategies listed above, saving you time, increasing customer lifetime values, attracting new guests, improving your reputation, and boosting your bottom line.

Click Here to Schedule a Free Online Demo, or call 727-877-8181 to see how we can help you save time and drive tangible results for your restaurants.

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

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