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Customer Loyalty by the Numbers: Follow the 80-20 Rule

Business.com / Technology Solutions / Last Modified: February 7, 2018
Photo credit: El Nariz/Shutterstock

One of the unwritten rules in restaurant marketing is that 80 percent of your results come from 20 percent of your efforts, including capital investments, employees and advertising. Wi-Fi sensor technology at physical locations provides digital feedback to help you achieve marketing success.

One of the unwritten rules in restaurant marketing is that 80 percent of your results come from 20 percent of your efforts, including capital investments, employees and advertising. Results can be measured in sales dollars, profits or other metrics. In hospitality, 80 percent of sales dollars may come from 20 percent of guests.  

Applying the 80-20 rule to repeat customers is essential, because they are the ones who ensure long-term business success. That's why having feedback on the effectiveness of your marketing efforts will tangibly impact success. The good news is that businesses have new tools to measure and meet 80-20 objectives.

Wi-Fi sensor technology at physical locations provides digital feedback to achieve marketing success. Most importantly, it influences the conversion of first-time customers into repeat guests. How? People today are reliant on internet access with their mobile devices, and if a business provides free Wi-Fi, most customers will use it. When combined with the right sensor technology, Wi-Fi provides customer behavior metrics, including the all-important first-time visitor return rate.

Here are the key benefits:

1. Create real-time snapshots. Analyze customer behavior as soon as they walk into your location by harvesting (anonymous) data from their cell phones through Wi-Fi sensors. A customer does not need the restaurant’s mobile app to enable collecting this data.

2. Capture customer profiles. Get customers' personal contact and demographic information as soon as they opt in on smart Wi-Fi landing pages. 

3. Marketing on arrival. Initiate marketing automation initiatives, such as asking a customer to download your mobile app and/or provide ratings. Then match each customer's profile to their cell phone to personalize their experience.

4. Progressively profile. Profiles of these same customers are automatically updated over time from multiple data sources, such as point of sales data. Customers' profiles then can be segmented into smart lists for marketing purposes.

5. The AI difference. Leverage machine learning, predictive analytics, and artificial intelligence to increase frequency and revenue spend per customer via an intelligent marketing platform. All outbound campaigns can be measured both in terms of the number of customers walking back into your location as well as the campaign's specific ROI.

Taken together, these five key benefits offer actionable marketing guideposts to successfully turn first-time visitors into repeat customers – with a goal of achieving 80-20 success. Encouraging loyalty of first-time visitors can be more challenging than retaining your current group of longtime customers because they lack the long history of customer satisfaction. That's why data garnered through Wi-Fi sensors is so important. 

Here is just a sampling of actionable insight this technology provides:

  • High first-time visitor return rate: Congratulations! You're doing something or several things right. If you can maintain this return rate, retain these customers over the long term, and increase their lifetime value, your business will grow rapidly.

  • First-time visitors who don't return: Time for a reset! If your first-time visitor return rate is low, but you're getting plenty of first-time visitors, then there's something about the first visit that is putting them off. Checking your records will reveal when the pattern began. What changed during this period? Did you change your interior decor? Perhaps a key employee who interacts with customers either left or was hired. Or perhaps there is a disconnect between your marketing message and what your visitors encounter at your business.

Using Wi-Fi sensor technology to learn as much as you can about customer behavior and the all-important return visitor rate is the first step. Using that knowledge to create targeted triggered marketing campaigns will keep your business on the road to 80-20 success.

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