Your best selling product may not be your best product


Over the years of working on creating a platform for restaurants to improve their customer retention, I have repeatedly heard a common theory which is:

The best selling product is the best product.

If something is sold the maximum every day, every month and every quarter, I will also believe that it is my best product.

The Product Sales Report, which every billing software and CRM provides as a basic feature became the most loved report for any operations guy or a business owner. They started using this report to plan a lot of activities like:

  1. Remove products from the menu (products which are ordered less)
  2. Promote best selling products online and offline.
  3. Manage inventory based on the products sold.

It does help them manage a lot of operations related issues but should the product sales report be the only criteria for deciding which product to promote or which product to be removed from the menu? It was a rhetoric question..the answer is No, the product sales report should not be the only criteria.

To give you a context, one of the famous restaurants in Delhi serving North Indian cuisine, their 50% of main course orders would comprise of “Murg Makhani” or “Dal Makhani” and both the products combined contributed to 10% of their total sales in any given month.

Anyone who would look at the above numbers would advise to just push these products on every marketing platform as they are best selling products. But we at Xeno found that there is one more important metric equally important as Product Sales  to be looked at for taking business decision. We called it Product Retention.

Product retention: % of customers that returned after consuming/purchasing a particular product.

To show you guys the real picture of how their product retention performed:

  1. Murg Makhani : 53%
  2. Dal Makaani : 30%

To elaborate, 53 people out of 100 came back to the restaurant after eating Murg Makhani and 30 people out of 100 came back after eating Dal Makhani. The average retention for all products combined was 49%. So this means that Dal Makhani, which is the best selling product has a much lower retention on an average. So once again, we circle back to the same question…is my best selling product really my best product? and again the answer may not always be yes.

The best analysis which we found for this restaurant was that there were products with very few orders (less than 2% of total Main Course orders) but had a retention rate of more than 90% (We call them “The Hidden Gems”) which were never promoted and a few of them were going off the menu. It also gave them a better variable to work on to help them decide which products are to be removed from the menu (there were products with less than 15% retention).

This is not just applicable to restaurants, the similar logic can also be applied in retail and salon industry. A salon owner can identify that Hair Cut is the most consumed service. But, he can never visualise through product sales report whether the service is good or not. Through product retention report he will get a clear indication of whether the customers are happy with the hair cut or not. If the product retention is high that means the hair stylist is doing his job.

So attributing sales to customer data not only helps you in improving repeat sales but it also helps you in improving the products and knowing which products is making a difference in your current and future sales.

We at Xeno have created a concept called the Magic Quadrant which helps you segregate your products into the following parameters:

  1. Favorites (High Order and High Retention)
  2. Kill Them (Low Order and Low Retention)
  3. To Promote (Low Order and High Retention)
  4. To Improve (High Order and Low Retention)

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At Xeno, we help you understand the importance of these metrics which enable you to take better decisions for your business.



Maximize profits on Zomato & Foodpanda

maximize profit

In today’s day & age, no restaurant can run without online ordering. No restaurant. The biggest brands like Dominos and Mcdonalds have partnered with Zomato, Swiggy, and Foodpanda.

Most delivery restaurants get 50% to 75% of their orders through these channels. But what’s also happening is that discounts + commissions are eating into profit margins. Depending on how you look at it, you’d think that these platforms are good or bad; good for sales, bad for reducing profit margins. I believe a restaurant should look at Zomato & Foodpanda as partners.

At Xeno, we’ve worked with 100s of restaurants, understood their pain points & built a solution to help you, a restaurant owner better understand your online ordering channels, and maximize profit through them.

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Are you spending your marketing budget the right way?

marketing budgetLet me ask you a simple question that I ask my prospective customer at every sales pitch.

‘If you had a budget of Rs.1 lakh each month to increase your revenue through marketing, how would you spend your money?’

What’s your answer? I’m guessing it more or less revolves around the below ideas:

  1. Newspaper ads
  2. Pamphlets and distribution flyers
  3. Offers & discounts through various online channels like Groupon, Zomato etc.

But is that right way to spend your marketing budget? Maybe. Maybe not.

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Generate 100x SMS Marketing ROI

I started Xeno to help businesses increase their revenue from their existing customer, but I never cracked the code till I cracked the power of SMS.

We all underestimate SMS. I did. We think it’s spam. We think it doesn’t work. That’s because we just bulk message our customers and don’t measure the SMS campaigns results at all.

So how did Xeno crack SMS? 

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How to design a loyalty program in 10 mins

A loyalty program is key to a thriving business! And in case you didn’t know this: 88% of businesses with loyalty programs are more profitable than those without (Deloitte survey).

Yet we run away from running a loyalty program for our business. Why?

People get scared with the time and effort required.

Ask most people and they will tell you that structuring a loyalty program is a complex exercise. Something that’ll take hours if not days of brainstorming to design.

We know most business owners don’t have hours, forget days to spare from their hectic day to day schedules. So here is a guide to help you design a loyalty program in just 10 minutes. Yes, that’s all it takes!

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