Importance Of Customer Retention For Restaurants
An ability of any company, organization or product to be able to retain the users or customers for a specific period is known as customer retention. If customers of that particular product do not tend towards any other product and continue using the same product, that product is said to have high customer retention.
Based on the latest research and studies, customer retention in any industry is dependent on uniqueness and reviews as well as the service provided by the industry. It has been seen that customers of the modern world are profoundly affected due to online reviews. Customer retention is also heavily dependant on the consistency of basic service provided and the quality of the end product. Be it the product or any service provided. Customers are reported to leave a provider due to lack of variety in the provision of product or service. Another major factor affecting customer retention is customer-provider interaction. It has been studied that providers who indulge in a friendly conversation with customers are more likely to get higher numbers of loyal customers. Showing enough of personal interest in customers, being an attentive listener or by finding requited solutions to some specified needs and concerns a relation can be developed between the providers and customers.
Customer retention is one of the most challenging matters to deal with when talking about restaurants. Although the taste of food and quality of service is of immense importance when talking about the success of restaurants but is not the only thing which brings back the customers.
In a Global Village of today, social media is known for playing a massive role in marketing online, and so is an essential factor. So it should be made sure that the presentation is different from other local providers and should be photo-friendly. As per the expertise of Crave the more critical factor in deciding the restaurant is the photos uploaded on social media applications.
The importance of customer retention lies in some basic marketing facts which help boost up the growth and revenue of restaurants.
Customer retention is of extreme importance as loyal customers are the continuous provision of business regularly. As per experts, they are finding that a new customer can costs on average 4 to 9 times more finance as well as the time when compared to doing business with an existing client. Hence retaining customers can be commercially intelligent in terms of saving higher profits. Moreover, customer retention also results in expansion of business through customer recommendations. Loyal customers, who talk positively about the product or service being provided can be considered as one of the most effective marketing. In the modern era, with customers having more knowledge and information, personal reviews, also known as word of mouth, are considered to be the most reliable source of information by 92% of the customers. Hence retained customers can be considered as an effective advertisement. Providing facts about customer retention Harvard Business School states that five per cent of customer retention can result in a 25 to 95 per cent increase in profits.
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