Boost revenue with analytics strategy
Overview
A multi-unit restaurant chain, specializes in serving fresh, healthy, and delicious meals to its customers. The restaurant group has 29 units located in cities within the United States. The company has been in business for ten years and has occasionally faced challenges increasing its average order amount and gross revenue.
Challenge
The company wanted to increase its revenue and profitability by boosting its average online shopping order amount. To address this challenge, they sought to leverage analytics to help optimize their strategy.
Analytics Implementation
A robust analytics system to capture and analyze data from its point-of-sale (POS) systems, customer feedback surveys, and online ordering platform. The custom web analytics solution would include tools for tracking sales data, customer preferences, order patterns, and customer feedback. The collected business intelligence data would be analyzed using analytics platforms, custom-built dashboards and data visualization tools.
Insights and Strategy
Popular Menu Items
Specific menu items had higher demand compared to others, were usually popular among customers and had higher margins. Promoting these items and optimizing their pricing and presentation could help increase the average order amount.
Add-On Items
Customers who ordered sandwiches or bowls often did not add on sides or beverages to their order. By optimizing add-on items and suggestive selling, sales and average order amount could be increased.
Online Ordering Trends
A significant portion of sales came from online ordering, and customers who ordered online tended to spend more compared to in-person orders. Customers who ordered online often customized their orders with additional toppings or modifications, resulting in higher order values.
Menu Optimization
Analytics would provide insights to reimagine the menu highlighting popular items and reevaluate pricing incentivizing customers to order higher-margin items. Combo offers and meal deals could be included to encourage customers to add more items to their orders.
Up Selling and Cross-Selling
Prompts would be implemented within the online ordering platform encouraging customers to add on sides, beverages, or desserts to their orders.
Customization Options
An enhanced ordering platform would allow customers to customize their orders with additional toppings, modifications, or sides. Limited-time customization options tied to promotions or seasonal themes would entice customers to spend more were also introduced.
Successful Results
Increase Average Order Amount
The average order amount would increase within three months of implementing the strategy. Customers would now be more likely to order meal deals, add extra toppings, and sides, resulting in higher order values.
Improve Up Selling and Cross-Selling
The up selling and cross-selling efforts would lead to an increase in add-on sales as customers would be increasingly receptive to suggestions
Higher Customer Engagement
Promotions and loyalty programs would lead to an increase in customer engagement. Customers would be actively engaging with the restaurant, resulting in higher sales and repeat visits.