The Value of a Customer

Three Ways To Increase a Restaurant's Revenue

Raise prices
Increase customer quantity (gain new customers through advertising and increase repeat purchases while retaining existing customers)
Increase the average ticket with add-on selling and upselling (sales, marketing and product merchandising)

It's Easier to Keep a Customer than Get a New Customer

It is a commonly held belief that a business will spend five times more to get a new customer than it needs to spend to get comparable revenue from an existing customer. Point of Success gives a restaurant the information it needs to continually communicate with existing customers, encouraging them to order more and order more frequently .

Lifetime Value

The value of a new customer is important, but the lifetime value of an existing customer is even more important. Many restaurants expend a great deal of time and money to get new customers to the exclusion of improving relationships with customers they already have.

If a restaurant spends $500 to get 30 new customers who each place a $15 order, the total new revenue will almost meet the cost of the advertising. The problem is that if 25% of these new customers order again, these new customers are profitable only if each retained new customer orders three or more times. Balancing new customer marketing activities with offers directed to existing customers is vital to a restaurant's success. Restaurants using Point of Success software know their customers and their buying habits, giving them the power to emphasize existing customers in their business-building activities.

Consistent, Reliable Source of Orders

Every restaurant manager recognizes their customers who order consistently. They know that the majority of their orders every day are placed by existing customers. Existing customers are the most consistent, reliable source of regular business.

Happy Customer Recommendations

Happy customers constantly recommend a restaurant to their friends, family and coworkers. Point of Success helps build excellent customer relationships to maximize recommendations!

Get more information about customer satisfaction statistics, relationship building, and the importance of customer satisfaction on these web sites:

e-Satisfy - www.e-satisfy.com

intelliGRAPHICS - www.killermarketing.com

Australian Financial Services Directory - www.afsd.com.au

SBA Online Women's Business Center - www.onlinewbc.gov

Indicates features available only in Point of Success Premium. See all the differences between Point of Success Standard and Point of Success Premium here.

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