Serving the “Need States” of Online Customers, Part 3 – Impulse Customers

Posted by Tim on December 1, 2014
This is Part 3 in a series of articles about attracting the “need states” of online restaurant customers - the needs and key decision-making points of each customer segment.  Part 1 addressed Special Occasion Customers.  Part 2 addressed Routine Customers.  Today we address Impulse Customers.

Impulse Customers.  These are folks that make spontaneous dining decisions.  Here’s what you need to capture their attention:

  • Good Web Visibility.  This is especially needed with mobile devices where the likelihood of an impulse purchase increases. Make sure your website is mobile friendly.  Your NetWaiter site is already optimized for mobile devices, so you can redirect visitors directly to your custom NetWaiter page if needed.
  • Price Point.  The price point for this type of customer is often lower.  They may also trend towards ordering more snacks, rather than full meals.  They want to see options that fit their lower price points when searching your online menu. 

Impulse customers can also be found locally.  Make sure you do things that attract these patrons.

  • Email Marketing.  More and more people live their lives through their smartphones.  Reaching them while they’re ‘on-the-go’ isn’t a bad thing.  If they like what they see, they may be inclined to take action right then.
  • The LTO.  Limited time offers tap into the marketing tactic of “get it now or miss out.”  Offer them a special online-only deal, with a very limited window for them to take advantage.  Just make sure the offer gets to them before lunch/dinner.
  • Make It Effortless.  With NetWaiter, over 68% of customers choose to pre-pay online for their pickup or delivery order, if provided a choice.  Pre-payment makes it a smooth, quick transaction.

It’s also important to keep in mind that the need states of customers change.  Every customer, at one time or another, will be in one of these three need states we discussed.  Appeal to each one of these need states, and you will reliably attract more customers.

Important Stats on Mobile Devices and Restaurant Technology

Posted by Tim on November 14, 2014
Recent research by the National Restaurant Association reveals stats that show just how important your restaurant's online ordering business is to certain customer segments:

Consumers that own smartphones or tablets:
  • 90% of 18 to 34-year-olds.
  • 89% of 34 to 44-year-olds.
  • 62% of 45 to 55-year-olds.
  • 60% of 55 to 64-year-olds.
  • 34% of those 65 and over.
Takeaway: Mobile devices are quickly becoming the instrument of preference when it comes to online ordering.
 
Consumers that report they use restaurant technology more than they did two years ago:
  • 53% of 18 to 34-year olds (Millennials).
  • 43% of 35 to 44-year olds.
  • 26% of 55 to 64-year olds (Baby Boomers).
 
Takeaway: Millennials are still the sweet spot for online ordering, but the customer base is expanding in all age segments.

What Influences Customers Online?

Posted by Tim on November 7, 2014
What influences a customer when making a purchase online?  Although these stats* apply to all online purchases, they are very much applicable to restaurants and restaurant online ordering.


Site Speed and Visuals:
•    After waiting 3 seconds, 57% of visitors will abandon a site if it’s still loading.  80% of those people will never return.
•    Visitors will leave a site within 10 to 20 seconds if it doesn’t immediately resonate with them or provide value.
This is why it’s critical your online ordering site is fully branded to your restaurant.  Customers need to ‘connect’ with your brand immediately or you may lose their business.  If your website links to a portal – you’re most likely losing a lot of business.
•    92.6% say visuals are the top factor influencing a purchase decision.
Showing high quality images of items on your menu can really benefit online sales.

Checkout Process:
•    67.4% of shoppers across all types of sites will abandon the checkout process.  That means just over 30% of visitors complete a purchase they start.  
With NetWaiter, nearly 80% of visitors complete a transaction after they select their first item.  That’s a HUGE difference.

Top Reasons for Abandonment Include:
•    41% - Hidden charges at checkout.
•    10% - Lengthy checkout process.
NetWaiter’s goal is to get the customer through the ordering process in as few clicks as possible – hence our very high conversion rate.

Other Interesting Information on Abandonment:
•    Men are more likely to abandon a purchase.
•    25 to 44 year-olds are the worst offenders when it comes to giving up on a purchase.
Considering the importance of this age group to online ordering.  This is why it’s critical to make the online ordering experience quick and easy for customers.
*Credit to The Marketing Donut and other sources.

What It Takes To Attract Millennials

Posted by Tim on November 7, 2014
The True Cost of Portals

The True Cost of Portals

Posted by Tim on August 30, 2011

Many restaurants have a philosophy about using multi-restaurant online ordering portals - they grit their teeth and do it. 

Most of the time restaurants allow themselves to be listed on portal sites to get any exposure they may bring.  According to a Cornell Hospitality Report, though, “nearly half of the consumers on multiple-restaurant sites (47.1%) said they clicked over to the restaurant’s own website to order their food” once they found a restaurant they liked. That’s good news for restaurants using NetWaiter – it can, not only save the restaurant a lot of money, but also allow the restaurant to interact with their customers directly, rather than be ‘commoditized’ on a restaurant portal.

The bottom line – portals can charge some outrageous fees.  According to a recent piece in Gourmet Marketing, a well-known portal site they investigated "keeps their contract terms behind close(d) doors, and the rates vary by restaurant. This incredible lack of transparency shortchange(s) restaurants… It gives restaurant owners little room to compare in competitive markets, especially as many times restaurant owners are bound by a non-disclosure agreement.”

The article notes that fees can range from 11% to as high as 20%.  In addition, restaurants don’t directly receive money from incoming orders – they have to wait for the portal to send them a check (minus their fees).  Not only that, as one restaurant owner admits, portal sites also use a restaurant’s customer list against you.  "I never see a report of who ordered through the portal," he said.  "I'm sure they are using my customer information to market themselves to other restaurants."

The message to restaurant owners is simple - if you use portal sites to help promote your restaurant, you should be very aggressive about converting those customers to your own online ordering site.  Rather than pay huge fees to a portal, customers that order directly from your site will allow you to extend your brand identity to them, receive payments directly, and capture your own customer information.

To capture those 47.1% of visitors that would rather order directly from your website, you need to make sure your ‘Order Online’ link is prominently displayed on your homepage.  Additionally, you should inform guests that have already used a portal to order from your restaurant that you have your own online ordering system, guaranteed to be up-to-date with the latest offers and menu information.  Including a flyer with each portal order or offering a first-time discount for using your system are good ways to make sure their next order will be “NetWaitered” from your restaurant.

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