Importance of CRM System in Restaurants

CRM stands for Customer Relationship Management and as per the name suggest, it really helps the business to maintain a relationship with the clients, without CRM, it’s impossible to manage all the customer’s data.

CRM helps us to know the insight of the customer, what are their likes/dislikes, their special days like birthday, anniversaries, how much they were spending, on which items they were spending, from how many months or years they were our valuable customers and many things, it won’t be possible without CRM.

In this article, we will discuss the importance of CRM in restaurants.

Before, We will discuss the importance, let’s discuss the problems faced by the restaurant without a CRM system.

1.  It’s not possible to record the customer’s data

2. It won’t be possible to send customized greetings on their birthday and anniversary

3. It’s really difficult to estimate the sales

4. It won’t be possible to offer customized services to our valuable customers

5. We can’t able to maintain the relationship with the customers.

6. It’s difficult to get customers valuable feedback and improve our services.

7. As a restaurant, we should know the preferred food choice of the customers, and that won’t possible without CRM.
And many more.

So, we understand the problems, Now we can focus on solutions. So let’s start with the understanding of the CRM. What is CRM?

CRM is a technology which manages the data of your company’s customers, interaction with their potentials customers, remind us to send greetings on a special occasion, send customized offers on that specific day, help us to forecast the sales. In short, CRM is a system or a tool that helps the business to improve relationships with the customers and it helps to stay connected with the customers, streamline processes and maximize the profit.

Here we are going to discuss the importance of the CRM system in a restaurant?

Generally, Whenever a customer enters in any restaurant, the restaurant gives a menu to them and ask to order food and they delivered it and then the customer left, it’s simply kind of process. it does not give an extraordinary experience to the customer But when you are using a CRM at that time, you go to the customer with an iPad and ask some details like their name, phone, email, birth date, what’s the occasion today, how many members do you have, anniversary date, birth date of family members and other stuff.

Now, might be you wondering that, is customer willing to provide this information? yes, they are, if you will explain the purpose of this, if you will tell them, we will send customized offers to you and offer percentage discount from the second time onwards, then they will be surely happy to provide this information.

Once you have all these details with you and you have the food order details with you, at the end of the meal, you can ask for a review, ratings and take feedback on every item and food, what things they like and dislike. The customer is feeling good and also they feel valuable.

In this way, you will have all the details of a customer, now when you are introducing any new food item at that time, you can send them an email or SMS, you can also send offers to them, you can send an invite on their birthday, children’s birthday, anniversary and on every special occasion. you will turn your customers into loyal customers, they will promote your restaurant, they will bring more customers.

Above, I have explained only the one way to get the customers data, you can do the same thing in a digital way via Email, website Or a mobile app.

Why CRM? how it helps to boost the profit of your restaurant? How CRM work?

As in this digital era, everyone is using the software or system by which they can increase the productivity of their restaurant. Do you know, many restaurants are boosting the bottom line by using CRM software that is customization to their needs and their customers want. Mainly CRM is all the activities, technologies and strategies that restaurant user to manage the data and interaction with their potential customers. To create some loyalty programs and provide some offers and discount to the customers according to their visit or their loyalty to your restaurant. CRM is not only beneficial for large scale restaurant but it is also used by small scale restaurant to increase their profit.

CRM can be implemented by various methods like website, Social media, Telephone calls, Chat, mail, coupon code, text messages and by marketing method.

 Types for CRM restaurant owner can be used and increase their profit or productivity:-

1. Operational – The operational system is mainly operating the three component of restaurant which are marketing, sales and service. It frequently deals with the past customer’s data like marketing campaigns, their purchases and service satisfaction of customers.

2. Analytical – Analytical tool is used to analyze the data of all the customers to better understand the current market trends and customers needs. Analytical goal is to improve customer satisfaction.

3. Collaborative – Collaborative CRM is used by restaurant when hey share customers information with other restaurant or this type of CRM is used by restaurant who are in collaboration with different parties.

Why the restaurant must use the CRM system?

• A better understanding of customer
• a better understanding of the restaurant
• Easy Follow up and interaction
• Increase customer retention.
• gathering of real-time feedback and reviews from customers.
• increase referrals from existing customers.
• Improve product and services
• Get to know the popular dishes or food item of your restaurant
• Ensures a more focused target marketing campaign

Key features of a restaurant CRM system or How CRM Works?

• If customers visit your restaurant for the first time, collect all the details from them, like their phone number, Birth-date, Anniversary, E-mail, address and many more which can help your restaurant to contact them for special offers and hold them for services. If you are using CRM then it is easy to store all the data in one place(Database) for analysis.
• As all the data is stored in Centralized CRM, make the use of data for marketing like E-mail or phone marketing.
• When customers are about to order the food item, then ask them about their taste because some people like spicy food etc. so ask them and serve them accordingly.

• Take a Feedback about the quality of food and if customers suggesting some improvement then work on that.
• Ask them to review the services of food or waiters and improve according to the feedback if required.
• Personally interact with the customers and ask them for the overall review or ratings and take rating comparison to your restaurant competition.
• On their special day like a birthday or anniversary, do a phone call or text them a message of providing special offers or discount for their special day.
• To maintain a relationship with your old customers you can send a gift to them or greetings at their special day and invite them to the restaurant.
• If the restaurant is providing good services and earning good feedback it doesn’t mean that they do not have to use CRM, as to retain customer they can provide the coupons to regular customers.
• Do loyalty programs for customers and inform them about the special offers or discount restaurant is providing on festival through social media, phone call or text message.
• If your restaurant is also serving customers through online like providing them food ordering or food delivery app then add the module of feedback or review if any customer is not satisfy with your service and share a bad feedback then take it in a positive way , work on the services and again ask customer to try your service and give feedback.
• Connect CRM with Payment gateway and provide offer according to the loyalty of the customers by providing cashback offer or discounts.

If you are running a small scale restaurant or if you are the owner of a large scale restaurant and if you want to maintain or improve the customer relationship with your business then you should definitely adopt the CRM system which can maintain long term relationship with your customers and increase the productivity and profit of your business.

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Written by Chirag Panchal

Chirag Panchal is a Founder of The App Ideas, a leading web and mobile app development company specialized in android and iOS app development. He has expertise in various aspects of business like project planning, sales, marketing and has successfully defined flawless business models for the clients Delivering best solutions to its local and global clients leads to better business all around.

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