If you build it, they won't come

Just because you have have a website doesn't mean your customers are going to use it. Ditto apps and social media.

Customers are craving engagement and interaction from your brand more than ever. This trend has been enabled directly by the emergence of technology, particularly social media and mobile. The trick is to engage with your customers on their terms, one-to-one. Blanketed marketing approaches are slipping down the priority list.

Panelists from the "Closing the Loop: Turning Customer Engagement into Repeat Business" webinar, presented by NCR earlier this week, said the challenge with this trend is in finding that delicate balance when considering a digital strategy. Those panelists included Ed Beck, CIO and SVOP of Technology at the National Restaurant Association and Education Foundation; Jon Lawrence, senior director of Solution Marketing, NCR Hospitality; and Tammi Cicora, chief hospitality officer at Tom & Eddie's.

Millennials in the driver's seat

The three panelists agreed the fast-paced push into digital is largely driven by millennials, a demographic too powerful and large to ignore, Beck says.

"Most operators understand the need, not the how (with technology) and most millennials are using technology to engage with brands. Operators need to embrace this powerful demographic more," he said. 

The younger consumers will continue to drive change and seek out technology to enhance their restaurant experiences. The opportunity in the restaurant industry is ripe as restaurants, Lawrence said, are notoriously behind other sectors, including and especially retail, when it comes to digital engagement.

Why restaurants are behind

Restaurants are playing CRM catch-up for one main reason – slim gross margins, Beck said.

"Most operators watch their bottom line closely. Slim gross margins and not understanding a rate of return and how it will impact them is causing an unwillingness to leap forward into new technologies," he said. To change that, operators should understand that nearly 80 percent of consumers believe these initiatives create convenience and accuracy for them.

"People don't have time these days. It is imperative to catch them on their terms when you can," Lawrence said.

Additionally, restaurant brands have a bridge to build from the IT and operations departments to the marketing department in order to create the most effective digital presence. Until now, any conversation about technology hasn't involved marketing, Lawrence said.

"When we start to talk about customer relationships, a real key part is that marketing is now a player at the table. CRM is relationships with guests over time. That relationship becomes brand awareness and marketing has a key role in how that brand awareness will play out," he said.

The biggest challenge operators face in responding to customer feedback and maintaining that relationship online is time, according to a survey presented during the webinar. But, finding that time is critical.

"Millennials are out there and are interacting at a tremendous rate. They're looking for information on restaurants on the Internet. If you're not there, they're looking at your competitors," Beck said. "(Having an online presence) is a necessity in order to operate in the future."

Translating your online presence into mobile is now equally as important. Lawrence said 83 percent of the younger demographic has a smartphone. These digital components have changed the entire way consumers perceive brands.

"Historically, it used to be that when you see the brand, you think of its logo or color. Those were the key attributes. But now everyone has a smartphone and you're connecting with guests through an app. Now you're building on that perception and what this group sees about your brand, they see through that smartphone," he said. "How your information and their desires are represented through a mobile device is incredibly important and creates that overall feeling and perception about a restaurant."

Gleaning the data

When you build a customer relationship via technology, you also have the ability to mine data that simply wasn't available before. With that data, you're able to build a customer relationship personally and connect with those guests on a one-to-one basis.

Cicora said Tom & Eddie's has actually drilled down this data to change the menu on occasion.

"We've created burgers, shakes, we've deleted menu items, all based on customer feedback. It's imperative you listen to customers and make these changes versus just sitting in a room and having five people making the decision," she said.

How to get the right feedback requires a balance. Beck suggests using a post-dining survey to ask consumers how they want to be interacted with.

"Restaurants get a lot of information without thinking about the purpose for asking a question. You don't want to just evaluate the dining experience, but engage the customer after that dining experience. Identify a person walking through the door and ask them what they want from you – how, what, when and why?" he said.

Lawrence added that some customers will opt in to text messages, others will sign up for an email list. It's important to not deploy a blanket solution. Such strategies are becoming obsolete because of big data and technology.

"Different customers behave differently and seek different ways of communication. Use each technology for a purpose that fits. There is not one right answer," he said. "The technology and food experience are now weighted equally in the eyes of the consumer. What is right is what's right for your brand and your targeted customer base. It's less about a one-size fits all approach and more about understanding your target audience. Those who look holistically at customer engagement in a targeted way are the most successful."

_{Photo provided by Creative Commons.}