Marketing & Customer Service in the Restaurant and Hospitality Industry: Tools Leading to Success
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MARKETING
2014
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$683.4B
RESTAURANT INDUSTRY
Industry Synopsis The restaurant industry is forecasted at a 3.6 percent sales increase for a total of $683.4 billion in 2014. Specifically, restaurant chains climbed significantly while independent restaurants declined by 2 percent. Lodging has seen its 51st month of steady growth in a row and expected to grow 6 percent in 2014 similar to 2013. Both lodging and restaurant business owners are putting a large focus on millenials as a target market for continued growth due to their increasing presence in the marketplace.
Trends in 2014 The most dominant trends within the restaurant and lodging industries in 2014 seem to be centralized around speed and efficiency without sacrificing quality. Modern day consumers have higher expectations of the speed of service than they used to. Also, a study found that in restaurants a seven second reduction in customer wait time can increase that chain’s market share by as much as one percent. Hotel chains are attempting to achieve this by reducing inefficiencies within the booking, check-in, and checkout processes. There’s even a stress placed on the speed of the provided Wi-Fi service. Some restaurants are allowing their customers to place orders via tablets and soon to be through mobile devices. Another large area of focus for business owners within the restaurant and lodging industries is reputation management. Consumers have more platforms than ever to post their reviews about businesses, which is why customer service remains an absolute priority in restaurants and lodging. Yelp and TripAdvisor are some of the most well-known resources, as well as other social media. Word of mouth spreads like wildfire whether it’s positive or negative, providing managers with immediate feedback on how their teams are performing and how they are being publicly portrayed. Below are some of the methods restaurants and lodging establishments are utilizing to get noticed while adapting to the current market conditions: Collaborate with like-minded partners: restaurants partner with hotels, hotels partner with events
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NRA-Jan 2014 (https://www.restaurant.org/Downloads/PDFs/News-Research/research/2014Forecast-ExecSummary.pdf) NPD Group-Sep 2014 (https://www.npd.com/wps/portal/npd/us/news/press-releas es/chains-keep-restaurant-traffic-sta ble-while-visits-to-independents-decline-in-second-quarter-reports-npd/) 3 Hospitality Net-December 2013 (http://www.hospitalitynet.org/news/4063349.html) 4 M&SOM- Fall 2011 (https://www0.gsb.columbia.edu/mygsb/faculty/research/pubfiles/5373/customer_wait_fastfood.pdf) 2
MARKETING
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Offer discounts and coupons Use of social media or resources like Groupon Add to or adjust the product mix: restaurants investing in food trucks or increased emphasis onlocal or whole foods Implement frequency marketing: incentives for customers to become repeat customers Host events such as happy hours, nightly dinner specials, or tasting events
Implementing Tools to Provide Results There are several business tools available to both small and large businesses that ensure growth and maintenance of a modernly acceptable customer service level.
Call Tracking Because the best practices of advertising are constantly evolving, it helps to have some controls in place to guarantee a successful marketing mix. Call tracking is a helpful tool for advertising spend optimization. It works by monitoring inbound sales calls and traces them back to any offline, online, or mobile service. A unique phone number is assigned to each marketing source such as print ads, email ads, keyword searches. That way you know which source is generating phone calls, and in turn business, and which aren't.
MARKETING
ASSIGN
TRACK
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REPORT
The data collected can provide the call date/time/duration, website visit date/time, and even captures caller locations for you. Most importantly, the data is automatically converted into analytical form via programs like Google Analytics or Universal Analytics in real-time to supply you with the information necessary to have a better understanding of where your business is coming from.
Call Recording Call recording is a feature used to observe the customer experience. Restaurant and lodging managers understand the importance of inbound phone traffic and use this tool to listen to past calls to monitor the service the customer is receiving. Matt Thompson, the managing partner of Madison Social, utilizes this service to ensure the employees who answer the phone are relaying a proper first impression that well represents the brand.
Other Ways to Customize Phone Systems to fit Business Needs There are various other phone-based features that can be combined into a custom fit for the specific needs of a business. Call forwarding allows you to manage what number you want your calls sent to, specific to your schedule. With whisper notifications, you can set labels on your numbers so that you hear the label before connecting to an incoming call. Similarly, call screening requires callers to state their name prior to being connected with you. Also, caller menu options allow callers to be directed to different people or departments via recorded messages. It’s important to track movements within your applicable industry in order to continuously adjust your marketing efforts to drive inbound traffic. Take the time to discover the most fitting combination of services to instill into daily phone and customer service operations. Ultimately, the success of your business is dependent on customized outreach to your target market and exceptional service of your customer base.
MARKETING
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