The Covid-19 outbreak has had a profound impact on the F&B industry, with a staggering 85% decline in seated diners worldwide (as of 27 May 2020). In the post-lockdown recovery period, your business may face obstacles in reaching sales targets, as social distancing measures reduce foot traffic, and consumers turn to e-Commerce or food delivery services.
From loyalty programs to marketing campaigns, there are countless solutions available for businesses today. However, choosing the ideal solution for your business may be a challenge. We’re here to help you pinpoint the solution that will drive your business and boost your sales in the most effective way.
What to look for in a solution?
There are many solutions out on the market to aid you in these troubling times. However, we believe an ideal solution should achieve the following:
Maintains profit margins
Ideally, solutions should generate both growth and revenue.
Online food delivery platforms may help to expand the reach of your business, but high commission fees may squeeze your profit margins. In addition, as one of the thousands of stores listed on these platforms, your business may face tough competition in attracting customers. On the other hand, you can consider solutions that bring existing customers back to your store and build loyalty, without too much damage on your revenue.
A cost-effective solution should add value to your business by solving the right problem, without incurring unnecessary costs. First, this means identifying the pressing problems in your business so that your solutions can directly target these issues.
Second, look out for the fee structure of your solutions. Hidden fees, subscription fees, upfront fees and high commission rates can stack up, nullifying your new revenue by increasing your costs. If the on-boarding process is complicated, staff retraining will cost you time as well.
Ability to retain existing customers
While customer acquisition and retention are important aspects for growth, there’s mounting statistical evidence that shows customer retention is key to driving business growth.
In a study conducted by Bain & Co, a mere 5% increase in customer retention was found to increase profitability by 75%. A customer’s loyalty is a key driving force behind a business. As such, the solution should be able to help you retain your existing customers and keep them coming back for more. Research found that one of the best solutions that businesses can adopt to retain customers is starting a Customer Loyalty program.
Attracting online customers
As lockdowns begin easing all over the world, people can look forward to dining at restaurants, albeit with safe distancing measures in place. However, having experienced working and studying from home for the past few months, there has been a shift in customer preference for online food delivery services due to its added convenience. To combat this, the solution you pick needs to be able to aid you in capturing this group of people and attract them to your store.
Which solution to choose?
A simple Google search will reveal numerous solutions that business owners can adopt. However with so many solutions, it can be hard to evaluate them all.
Look out for our next article, where we will discuss various solutions available to F&B business owners to combat the Covid-19 aftermath.
If you enjoyed this article, take a look at how AImazing’s CashBack Loyalty program can aid you in attracting your customers back to your restaurant by clicking here.