The core customer base for a food service business is the local community around that business. For a restaurant or food service business, customer lifetime value means everything, as it can cost more to lose a customer from your core base. To deliver on your brand promise consistently, you must be able to manage every aspect of your business, from new construction and store openings to the overall capital improvement process.
Customer lifetime value should also be kept in mind when dealing with customer complaints, creating retention programs and training your employees. A dissatisfied customer will share their negative experience with others—potentially hurting business beyond that single customer interaction. If your restaurant or food service business is located in a community that does not have much traffic from other areas, negative experiences can kill your business over time.
According to the U.S. Chamber of Commerce and the U.S. Small Business Administration, "Fast Company (08.18.15) The 7 Fundamentals of Sustainable Business Growth", businesses are 4 times more likely to do business with an existing customer than a new customer, and the likelihood of selling to an existing customer is 60-70%, but only 5-20% for a new customer.
One negative interaction, from poor customer service to a food preparation mistake to a less-than-appealing restroom, can mean losing money from your business. To maintain control of your store environment and the experience of your customers, you must have visibility over your maintenance work orders, assets, facilities, and contractors.
Many customers have their favorite dishes that they’ll order every time they visit your restaurant. While the number of times they visit may differ, they will likely place the same order each time. This consistency adds money to your business over time. The downside of repeat customers is that same consistency applies if they take their money somewhere else. Then, you lose money from your business, and that revenue is harder to regain from a limited pool of local customers.
By applying consistency to the experience that you deliver to customers, you can drive customer lifetime value and your bottom line.
Learn more about how to deliver a quality customer experience, contact us today.