Everytime I meet an owner of a new restaurant and pitch him our analytics tool, I mostly get a reply along the lines of, “I have just started my restaurant and don’t want to invest time in analytics, I just want to acquire new customers”.
I completely agree that the initial focus should be on acquiring new customers but completely ignoring analytics from day one could be harmful to a business in the long term.
Analytics provides you with the correct facts which help in better decision making. The absence of analytics is nothing but a heady mix of subjective opinion, bias-tinged intuition, and blissful ignorance, often led by the HIPPO (HIghest Paid Person’s Opinion). A HIPPO is most likely to give you its opinion about everything without backing it with data or analytics.
Don’t get me wrong – intuition and experience are invaluable. But they should always be taken together with facts.
Let’s take two examples of activities which a restaurateur does and how analytics can validate whether the objective of the activity was met.
One of the common things which every new restaurateur does is purchase a Zomato banner for increasing the orders but he never actually ends up tracking the impact of the banner. A simple way to track this is to analyse the new customer acquisition and repeat customer trends weekly. Refer to a similar analysis below of a restaurant in Delhi, in the 4th week, after purchasing the banner there was an increase in both customer acquisition and repeat customers.
Based on the above trend there was an increase of 55% in new customers and 39% in repeat orders. This means that the investment in the banner worked.
You can read more about how you can maximize your profit through food aggregators here.
Moving on, the above logic can be applied to various other activities like:
- FB Ads
- Offline Marketing
- SMS or e-mail marketing campaigns
All you have to do is track new customer and repeat customer trends weekly or monthly.
To stay ahead of competition, a restaurateur has to keep innovating with existing recipes or launch new products altogether. Using analytics, one can easily track whether those experiments are working.
All you have to do is understand the sales trend of that product on a weekly basis. To visualise it better, a good sales trend would look something like this:
The above analysis is good enough to know whether the experiment worked.
You will be amazed to see how analytics can change the way you approach a problem. You will start using analytics for every issue you face in operations, sales or marketing. Be it any business, unless you are tracking the right KPI’s, your business will never grow. Those metrics need to be simple and easy to track.
We at Xeno are helping businesses use analytics to measure their business performance by tracking and improving various critical business metrics.
Now time for a 1 sentence sales pitch, if you’re looking to see how analytics can help your brand, click here to request a demo of Xeno.