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Data Finds Brand Loyalty Established With Fourth Visit

publication date: Feb 16, 2017
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author/source: Paytronix

visit frequency

Paytronix Systems, Inc., a leading provider of reward program solutions to restaurants and retailers, today announced research from its Data Insights team, which finds that restaurant brand loyalty is established on the fourth visit. Paytronix Data Insights reports that it is 90% likely that those who visit a restaurant for the fourth time will continue to visit on a regular basis, demonstrating brand loyalty.

Read the Paytronix Research Brief: Discover the Proverbial Gold Mine After the Fourth Visit

As the consumer's options continue to increase, the cost of customer acquisition for restaurant brands increases, and customer loyalty decreases. The report urges restaurants to use the data collected in their CRM systems to develop a customer nurturing campaign designed to propel the guest to their fourth visits.

"Rapid growth in the restaurant and retail market has left consumers with a wealth of options, which in turn increases the cost of acquiring new customers. It's more important than ever to engage customers who are experiencing a brand for the first time," said Lee Barnes, head of Paytronix Data Insights. "To get a good return on investment from acquiring new customers the challenge is to motivate a second, third, and fourth visit, at which point nine out of ten guests become repeat, loyal customers."

The Paytronix Research Brief studied guest behavior over time, across separate study groups to analyze loyalty programs for quick-service chains, versus full-service. The report details how (and why) the more guests visit, the more likely they are to visit again, with a graph showing the dramatic increase in how likely guests from each group are to return after visits two, three, and four.