5 Tips for Customer Retention
In the restaurant industry, repeat customers make up a significant amount of your business. According to investor and entrepreneur Gary Vaynerchuk, it takes three visits for a casual customer to become a true regular. He explains that the likelihood of a first-time customer returning to a restaurant that they enjoyed is about 40%. If they come back a second time and have another positive experience, there is about a 40% chance that they come back a third time. Then, after a third positive experience, the probability that they will come back a fourth time is over 70%. So, your goal as a restaurant owner should be to get every customer to visit your restaurant at least three times. Once they get there, there is a high chance they will be back. Here are five tips to get your first time customers through your door again and again.
5 Ways to Make Sure First-Time Customers Come Back
#1. Make a good first impression.
First impressions are always important. Make sure you give every customer the best service possible and be friendly and engaging. 82% of consumers in the United States will stop doing business with a company if they experience bad customer service.
#2. Communicate with your customers.
Communication plays a big role in retaining customers. Make sure your customers can have interactions with your brand daily by using social media, mobile apps, loyalty programs, or marketing emails. Take advantage of Instagram’s DM messaging service and reach out to local restaurant connoisseurs.
#3. Give them a reason to visit your restaurant again.
A practical and popular way to do this is by offering a loyalty program. Offering customers personal rewards instills an emotionally connection with your business.
#4. Hold events.
Holding events like “Trivia Night” or having local musicians play in your restaurant can make first time customers want to return.
#5. Go above and beyond.
As we stated earlier, having great customer service is key. But taking it one step farther is what makes first time customers turn into regulars. As the owner, you should greet your customers and learn their names. Perhaps bring out a free appetizer for first time visitors or give a free dessert to someone on their birthday. In the end, the customer will want to come back to your restaurant.
A great example of going above and beyond to guarantee that a customer will want to come back is featured in this 5 minute video from Gary Vaynerchuk and “Bar Rescure” host Jon Taffer. Jon says to ensure his first time customers get the best service possible, he sets their table with red napkins, so all the staff know that it is the customer’s first time dining. Then, when the customer is done with their meal, he offers $5 off a different menu item to prompt a second visit. When the customer comes back the second time to use the coupon, he checks in with the customer and offers a free slice of cheesecake on the next visit. Small details like these can make all the difference when you’re working to keep first-time customers coming back.
It’s All About the Details
The bottom line? Wooing first-time customers is a long-term investment. If you can get a first-time customer interested in returning once or twice, they’re much more likely to become a regular. Remember, after that third visit, the customer is 70% likely to return a fourth time! Pay attention to the details now to build a strong customer base for the future.
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