Here are some ways you can start improving the lifetime value of your restaurant customers.
Identify your best clients
The LTV metric evaluates your guests and identifies those who typically spend the most time and money with your business. This metric helps you allocate your marketing efforts. You’ll know who to target whensouth africa mobile phone number list offering services and loyalty programs.
Communicate better with your guests
LTV helps you find and target your customers' interests, making customer acquisition more accurate.
The simplest formula for calculating LTV:
Customer Lifetime Value = Average revenue from a customer for a period (month, quarter, year) x Average customer retention period
For example, a restaurant finds that older people have the highest LTV among its customers. This shapes its marketing efforts towards similar customers and works with specific acquisition channels. In this case, social media will not be used as much as other advertising formats, since older generations use social media less often. You can collect email addresses and communicate with customers there, instead of spending a lot of money on social media advertising.
Invest in those advertising channels where you have more potential customers
Get more benefits from your customers
Know your best guests – improve their service. This gives you the opportunity to improve your business by taking advantage of high LTV customers. These customers will try new products, tell others about the restaurant, and leave a review. High LTV customers are the ones whose feedback will be most beneficial.
This is where segmenting your customer base comes in handy. Passteam has automatic RFM analysis . It segments customers based on frequency, amount, and time of purchase. Customers who buy frequently and a lot will be in a separate segment.
In this guide, we wrote in more detail about RFM analysis of the client base in the restaurant industry and how to work with it.
Once you have identified the most profitable segment, you can start working with it. Send personalized newsletters with individual offers. This approach will increase revenue and improve customer LTV.