If a restaurant advertises to acquire NEW customers.
Average ROI on ad spend in between 4 and 6.
If a restaurant advertises to acquire REPEAT customers.
Average ROI on ad spend is between 13.6 and 15.
RVR (Return Visitor Rate) and it’s importance.
Restaurants who have a return visitor rate below 25% are very likely to fail.
Restaurants who have a return visitor rate above 50% are very likely to succeed.
You can calculate your RVR by taking total number of repeat customers and dividing that number by your number of customers.
Studies show 70% of customers will never make a return visit to a restaurant or retail store.
This illustrates the importance of loyalty. Give your customers a reason to come back and they will.
4) Repeat customers account for up to 70% of restaurant revenues.
According to a study by the National Restaurant Association. The average restaurant gets 50% of its revenue from repeat visitors. This is even higher in the quick serve and family dining, and lower in high end fine dining.
So if you don’t get return visitors. You are losing more than half your income.
5) Customers love loyalty. According to the Harvard Business Review and a study Colloquy, the average US household is a member of 29 loyalty programs.
If you aren’t giving your customers a reason to come back. One of your competitors will. Any form of customer loyalty is important. Free appetizer, free piece of cake on their birthday, anything is better than nothing.