Save At-Risk and Churning Guests with Restaurant Marketing & Analytics

Learn How To Keep Guests Happy, Loyal, and Coming Back Again and Again!

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What is Customer Churn?

Customer churn, or customer attrition, is the percentage of guests who stopped using your service or going to your locations during a specific period.

For companies that rely on loyal guests, such as restaurants or retail stores, a high customer churn rate can be devastating for businesses on many levels.

In the restaurant industry, which is heavily dependent upon guest loyalty, reducing customer churn rates is an absolute necessity.

Competition in the industry continues to grow at a record-breaking pace from new concepts, technology, and delivery.

Consumers have more choices than ever before when it comes to where they choose to dine.

So, if you want to be successful in today’s competitive environment, you need a way to identify churning guests and get them back through your doors.

 

Why Do Guests Churn?

customer churn and decreasing attrition

There are many reasons restaurant guests might have to churn.

Often it is because of poor customer service.

Other reasons may be that your restaurant’s food quality and choices are below par, or are overpriced. Or perhaps the level of cleanliness in your restaurant could be improved.

Whatever the reason, it will typically come down to one general explanation: They did not have an excellent guest experience, and they do not have the incentive to return.

Consequently, they decided that one of your competitors is better worth their time and money.

 

Why Is Reducing Churn So Important?

Retaining loyal guests is much less expensive than acquiring new ones.

According to the Harvard Business Review, acquiring a new guest can be anywhere from 5-25 times more expensive than retaining a current one.

Add to that the time between losing one guest and gaining another, and you can quickly see that an out-of-control churn rate can be devastating for any business.

Worse, if you do not recognize it, it will only continue to climb.

Unfortunately, many restaurateurs do not know what their churn rate is, or which way it is trending.

Likewise, they do not have the technology to monitor this vital business metric.

Customer attrition will occur naturally in business. But when churn rates begin to climb with no intervention, it can quickly derail any momentum your business has generated.

Loyal guests are more valuable to your business; the longer they remain faithful, the higher your customer lifetime values, and the lower you can maintain your customer acquisition costs.

 

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How to Measure Guest Churn Rates

Unless you have a photographic memory and you see every single guest who walks into your place of business, you’re going to need an alternative way to measure customer churn.

For eCommerce businesses and subscription-based companies, measuring churn is as easy as plugging in a number and doing the necessary math.

Restaurants, on the other hand, cannot accurately identify individual guests.

Add in passers-by and out-of-towners, and creating loyal guests becomes next to impossible.

Customer Churn Success Report

Without the ability to identify the visits of these individual guests, any calculations made will be skeptical, at best.

Therefore, churn calculations become extremely difficult to tally accurately for restaurants and other brick-and-mortar businesses.

That is unless you are using the Bloom Intelligence restaurant marketing and customer data platform.

 

How Bloom Identifies Churning Guests

Bloom Intelligence collects data from several different sourcesincluding your WiFi access points and online ordering system.

This allows Bloom to sense when a guest is at your place of business or ordering online.

This identification is how we calculate individual guests and their frequency.

The guest doesn’t have to log into the WiFi; they just have to be within the range of the guest WiFi access points.

Among other important guest key performance indicators provided by Bloom, you will now have a much more accurate understanding of the number of guests and the frequency of your guests to your locations.

Bloom automatically monitors your guest foot traffic or individualized presence analytics for you, and how that behavior changes over time.

We then analyze and clean all this raw data to provide you with an easy-to-see graphical representation of guest behavior.

 

Guest Churn Analytics

 

One of the most important indicators is how your churn rate is trending by month, quarter, or year.

These trends will allow you to identify at-risk guests quickly, and create an automated marketing strategy – campaigns based upon different scenarios to save your at-risk guests.

Bloom’s intelligent algorithm sets monitor each guest’s frequency distribution, individually and as a whole, to understand your guest attrition rate.

By analyzing guest frequency, the platform can accurately predict when a guest should be returning for another visit.

If they do not return by that date, they are “At-Risk” of churning.

You can then take steps through Bloom’s automated marketing suite to persuade the at-risk guests to revisit your location(s).

 

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Using WiFi Analytics to Reduce Guest Attrition

Using WiFi analytics to monitor and report on your guest churn rate, you’ll be saving money compared to hiring a third party to do this for you.

Plus, with Bloom, it is entirely passive. You don’t have to lift a finger to see your churn rate, which receives real-time updates.

Plus, you’ll be collecting data from a considerable sample size of your customer base, giving you the ability to spot trends quickly.

If you notice an immediate spike in the metric or a trend up or down, it will be much easier to identify the possible reason for the change.

Then, you can take steps to stop negative movement or reinforce the things that may be driving it in a positive direction.

Ways to Stop Guest Churn at Restaurants

As we mentioned before, attrition boils down to guests having negative customer experiences. If you notice an increase in churn, you’ll need to implement customer service training and operational procedure adjustments.

However, even if you have the cleanest restaurant with the most cordial staff and the most reasonable prices in town, it won’t help much if your churned guests don’t know you’ve made efforts to improve.

The Bloom Intelligence automated marketing suite of tools can genuinely help your business grow.

Bloom allows you to set up an automated, or triggered marketing campaign.

All you need to do is create a single message to send your churned guests or even guests who gave you a bad rating, ideally containing an incentive to return, such as a free drink or appetizer.

When Bloom identifies a guest who is likely churning, the system will immediately send that message to the churned guest.

Clients all over the country are running this type of campaign using the Bloom platform. And they are seeing impressive results leading to strong business growth.

For instance, a Florida-based restaurant chain began running an at-risk campaign several months ago.

They have seen a whopping 38% of these guests return to their restaurants.

Additionally, their attrition rate has dropped every month since executing the campaign.

To see the details, download the report here. As you can see, this is just one of the countless campaigns that Bloom’s intelligent marketing suite can execute.

 

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See Bloom Intelligence In Action!

If you’d like to see the Bloom WiFi marketing and guest intelligence platform in action, and discover how you can prevent customer churn and grow your business through WiFi marketing growth tools, schedule a free demo or call 727-877-8181.

 

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WiFi Marketing can Save At-Risk Customers

SAVE TIME, INCREASE CUSTOMER LIFETIME VALUES, CREATE NEW CUSTOMERS

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WiFi Marketing FAQs

What is WiFi Marketing?

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

Why are WiFi Analytics Important for Effective WiFi Marketing?

WiFi Analytics is the process of collecting and analyzing anonymous data from WiFi-enabled devices through WiFi access points. This provides key performance indicators (KPIs) such as dwell times, frequency, and other advanced location analytics for physical locations. Once a guest opts into the Guest WiFi landing page their individual presence analytics are associated to the guests profile. This process enables WiFi marketing platforms to track the performance of all campaigns sent to guests down to someone walking back into their door.

How Are Customer Profiles Built with Smart WiFi Marketing?

A customer profile is a description of a business’ customers typically stored in a company’s customer relationship management software (CRM). It includes demographics, behavior data, zip codes, birthdays, and guest contact information, such as email address or phone number. Enterprise WiFi marketing solutions automatically build customer profiles for physical locations by combining guest data from multiple different sources such as your Guest WiFi landing page.

What is Remarketing with WiFi?

WiFi Remarketing allows business owners and marketers to send targeted advertising and behavior-driven promotions to people, via online advertising and email marketing, to guests who have logged into your guest WiFi.

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