Important Stats on Mobile Devices and Restaurant Technology

Posted by Tim on November 14, 2014
Recent research by the National Restaurant Association reveals stats that show just how important your restaurant's online ordering business is to certain customer segments:

Consumers that own smartphones or tablets:
  • 90% of 18 to 34-year-olds.
  • 89% of 34 to 44-year-olds.
  • 62% of 45 to 55-year-olds.
  • 60% of 55 to 64-year-olds.
  • 34% of those 65 and over.
Takeaway: Mobile devices are quickly becoming the instrument of preference when it comes to online ordering.
 
Consumers that report they use restaurant technology more than they did two years ago:
  • 53% of 18 to 34-year olds (Millennials).
  • 43% of 35 to 44-year olds.
  • 26% of 55 to 64-year olds (Baby Boomers).
 
Takeaway: Millennials are still the sweet spot for online ordering, but the customer base is expanding in all age segments.

What Influences Customers Online?

Posted by Tim on November 7, 2014
What influences a customer when making a purchase online?  Although these stats* apply to all online purchases, they are very much applicable to restaurants and restaurant online ordering.


Site Speed and Visuals:
•    After waiting 3 seconds, 57% of visitors will abandon a site if it’s still loading.  80% of those people will never return.
•    Visitors will leave a site within 10 to 20 seconds if it doesn’t immediately resonate with them or provide value.
This is why it’s critical your online ordering site is fully branded to your restaurant.  Customers need to ‘connect’ with your brand immediately or you may lose their business.  If your website links to a portal – you’re most likely losing a lot of business.
•    92.6% say visuals are the top factor influencing a purchase decision.
Showing high quality images of items on your menu can really benefit online sales.

Checkout Process:
•    67.4% of shoppers across all types of sites will abandon the checkout process.  That means just over 30% of visitors complete a purchase they start.  
With NetWaiter, nearly 80% of visitors complete a transaction after they select their first item.  That’s a HUGE difference.

Top Reasons for Abandonment Include:
•    41% - Hidden charges at checkout.
•    10% - Lengthy checkout process.
NetWaiter’s goal is to get the customer through the ordering process in as few clicks as possible – hence our very high conversion rate.

Other Interesting Information on Abandonment:
•    Men are more likely to abandon a purchase.
•    25 to 44 year-olds are the worst offenders when it comes to giving up on a purchase.
Considering the importance of this age group to online ordering.  This is why it’s critical to make the online ordering experience quick and easy for customers.
*Credit to The Marketing Donut and other sources.

What It Takes To Attract Millennials

Posted by Tim on November 7, 2014
All posts by tim

Customer Tip of the Month

Posted by Tim on August 14, 2013

This from the Open Forum Blog of American Express: 

 

Practice the "benevolent ambush." This tip for better customer service comes straight from psychiatric research that found people were more grateful for an unexpected dollar bill than they were for the $100 bill they knew was coming. Look for ways to surprise your customers with an extra benefit or bonus to build real and lasting goodwill. Try this idea:

  • A random 50 percent off coupon sent via NetWaiter once or twice per year to each customer is a great start. 

Too Big a Slice (of the Restaurant Pie)

Posted by Tim on August 9, 2013

Recent articles in respected business publications reveal that restaurants are seriously questioning the business sense of portal sites that offer online ordering.  An article in Bloomberg BusinessWeek relates how Pedro Munoz, owner of Luz, a Latin American restaurant in Brooklyn, NY, has decided to drop his portal service with Seamless.

 

The good news is that Munoz has been sending out information with his takeout and delivery orders, directing customers to use his custom online ordering site – powered by NetWaiter.

In the articles, Munoz cites the factors that make portals an untenable situation for his restaurant, and others:

High fees.  Munoz paid Seamless a 14% commission on all orders, plus additional charges for advertising and credit-card transactions.  Considering that some restaurants don't realize a high profit margin on some dishes, this doesn’t leave much profit.

Turnaround time for payment.  Munoz and other restaurant owners had to wait up to 30 days for payments that were processed through Seamless to reach his account.  He says that Seamless was holding as much as $20,000 at some points.

Similar complaints have been made by other restaurants against other online portals.  “It’s awesome if you’re a customer.  It’s great,” Munoz told Bloomberg. “But in all aspects, it’s killing the restaurants.  It’s a model that cannot be sustained.”

Simple Steps to Boost Online Ordering at Your Restaurant

Posted by Tim on August 9, 2013

The advantages of online ordering are undisputed.  Customers love the convenience and accuracy.  You love that you can sell more meals without the added traffic in your restaurant.

So how do you encourage your customers to order more online?  Here are some simple steps you can take to make the online option more appealing.

Make the Order Online button more visible on your website.  We at NetWaiter are forever amazed at restaurants that require you to click through two or three screens before there is anything that tells the customer they can order online.  That button should be on your homepage, preferably at the top so the client does not have to scroll down.

A call-to-action.  Something as simple as, "Order Now!" is enough to get folks to click on the button. Maybe enclose it in a blinking star - the web is so distracting that sometimes you need some extra pizzazz to call attention to the otherwise obvious.  If you want to get serious, you can add a discount offer - 50% off your second dessert when you order online.

Offer curbside service.  For some people there is only one thing better than walking into a restaurant and picking up an order ready to go - pulling up to the restaurant and having them bring it out to them.  They don't even have to get out of the car.  Allow the customer to enter their vehicle description when placing the order.

Daniel Shalom Schreiber is a Class Act

Posted by Tim on August 2, 2013

This incident could have been disastrous for this restaurant, but cooler heads prevailed.

New Orleans Saints quarterback Drew Brees ordered takeout at Del Mar Rendezvous, a Chinese restaurant in San Diego, CA, where he used to live and where he is still involved in the community.  The order was in excess of $70.  Somehow, a picture of the receipt got into the hands of a website called The Dirty.  The website posted the photo and called Brees a cheap (insert expletive) for tipping three dollars on the order. 

Daniel Shalom Schreiber, one of the partners of Del Mar Rendezvous, did several smart things very quickly.  1) He took responsibility for the incident and apologized to Brees for the unwanted attention.  2) He determined the receipt did not come from the restaurant staff (it sounds like a rogue guest snapped the photo during the brief moment the receipt was exposed).  3) He wrote and posted a very classy letter on the restaurant’s website explaining the situation, apologizing to Brees again, praising  him for his benevolence in the San Diego community, and also pointed out that the tip was, in fact generous, as most customers don't tip for takeout at his restaurant.  4) He donated $888.88 to the Brees Dream Foundation (eight being a lucky number in Chinese culture). 

In our opinion, Schreiber took a potential disaster and turned it into a PR success by being calm and thoughtful.  For that, we give him a NetWaiter salute.  In addition, his personal donation to the Brees Dream Foundation was above and beyond the call of duty.

Let the record reflect that THIS WAS A TAKEOUT ORDER.  Tips on takeout orders are not typically expected, because the level of “service” (if any) is miniscule, especially compared to dine-in orders.  As most waiters/waitresses would acknowledge, any tip on a takeout order is appreciated, regardless of the amount.  Mr. Brees, it doesn’t matter how much money you make or how many passing yards you throw, your tip should NOT be considered small.  The irony is, if no tip was left, there probably wouldn’t be any controversy.  Regardless, it sounds like Mr. Schreiber and the restaurant staff certainly do appreciate your business and tip.

 If true, it’s unfortunate that a rogue guest thought it was important to 1) take a picture of Brees’s receipt and 2) get it posted online in an attempt to embarrass him.  That’s completely classless.  For that, we think you’re a jackass.

 

 

 

 

 

 

How Important is your Website and Electronic Outreach?

Posted by Tim on July 31, 2013

Are you considering SEO--search engine optimization--for your restaurant? Read this.

According to OpenForum.com, Adobe recently put out a study of the importance of website optimization activities. The survey covered 1,800 digital marketers, asking them about their activities in this area.

Eighty-six percent of the companies spent less than 15% of their marketing budget on website optimization activities--search engine optimization and other web-based campaigns. Slightly more than a third of those reported website conversion rates below 1%.

Those companies who  upped that investment to 25% of their marketing budget were twice as likely to enjoy website conversion rates of at least 9%. That means increasing your SEO budget by two-thirds can net an increase in results of as much as nine fold.  

This survey was across all business types, so it is not specific to just restaurants, but the general results are probably close.  According to a 2013 survey released by IAB and Viggle, 69% of those polled have ordered food via the mobile internet at least once, and use mobile devices for information/research even more frequently.

Investing in SEO will bring customers to your website and subsequently through your front door or to your NetWaiter online ordering website. 

Millennials – adults 18 to 35 years old – are the ideal candidates for restaurant online ordering.  Many of them don’t remember a time before the Internet.  Most of them have a connected device within arm’s reach, day or night, whether it’s a laptop, tablet, or smartphone.  Restaurant online ordering is natural for them.

There are, however, some things you need to know about this group – things that can make a difference for your restaurant and your online ordering business…

20% Less.  Millennials, as a group, currently eat out 20% less than other demographic groups. The Great Recession affected them profoundly.  They aren’t afraid to cook for themselves; however, they don’t like to cook all of the time.

The Amazon Generation.  Millennials don’t remember a time when there was no Amazon.com.  The result: they expect a user-centric, friction-free experience with their business transactions.

Loyalty.  Millennials are loyal, so much so that they don’t need or care a lot about loyalty programs.  A friction-free experience is much more important.  As a group, millennials are the least likely to review sites such as Yelp when making decisions.  They know what they want.

Window of Opportunity.  More than 50% of millennials make their buying decision in the six-hour window before they eat, with 29% of that group admitting that the window is closer to one-hour.  17% of millennials don’t even plan that far in advance.  Getting your message to them when they are deciding is important.  Millennials also like businesses that communicate with technologies they prefer – Facebook, Twitter, and Instagram.

Key Lessons:
•    Millennials expect consistent and convenient service more than discounts and loyalty clubs.
•    Communicate frequently and with the right platforms to reach millennials.  Stay top-of-mind so they choose your restaurant whenever they decide to place an order.
•    Make your takeout and delivery as convenient as possible.  Millennials may dine at restaurants less, but they don’t always want to cook for themselves.  Your restaurant’s online ordering site is the key to their dilemma.

Serving the “Need States” of Online Customers, Part 2 – Routine Customers

Posted by Tim on October 29, 2014