Hub · Blog

25

Apr

If you love a diner, let them go, for if they return, they were always yours

There is a wonderful little SiChuan-style Chinese restaurant that delivers in my area. They are the perfect solution for when I just want to eat in my pajamas and couldn’t give a hoot about calorie intake. I order from them so much that the mobile app I usually use to place my order already knows what my go-to items are on the menu. The entire purchase process is as short as a few minutes, stomach fed within 30 minutes, carb coma within the hour after. And I always go back for more.

At judo, we constantly emphasise the importance of using native apps to retain customer’s loyalty. The survey findings below outline just how important customer retention is to restaurants, and we believe that the same rationale can apply to other industries.

Originally from Movanta.com

Over 90 Percent of Restaurant Business From Repeat Customers

by Charles Allen

A recent consumer survey conducted by Movanta with Google Consumer Surveys highlights that over 90% of restaurant takeaway orders in the UK are from repeat customers. The importance of looking after your existing customers has never been greater.

Introduction

One of the questions on restaurateurs minds is ‘how much of my business is from my regulars and how much from new customers?’ This question matters a lot – it sets the balance of a restaurant’s activities between acquiring new customers and looking after existing customers.

Nowhere is this question more pronounced than in the takeaway food sector. Customers only spend long enough in the restaurant to order and pick up their food. From a restaurant manager’s perspective this doesn’t give them long to build a customer relationship.

We conducted a UK consumer survey to understand repeat ordering in the takeaway sector.

Most UK Adults Eat Takeaway Food

The first question we asked was whether consumers ate takeaway food. Unsurprisingly the majority – 57% – said that they do.

Do You Eat Takeaway Food?

Consumers Are Incredibly Loyal To Their Takeaway

We then asked respondents who eat takeaways how many times they had ordered from their last takeaway restaurant. A staggering 39% had ordered over 10 times from the restaurant. A further 32% had ordered between 2 and 10 times. Just 9% were ordering for the first time.

How Many Times Have You Ordered From Your Last Takeaway Restaurant

Repeat Customers Represent Over 90% Of A Takeaway Restaurant’s Sales

The most loyal customers represent on average 10 times more sales than a first time visitor. Combining order frequency with the proportion of customers highlights that repeat customers a worth well over 90% of takeaway restaurant sales compared to first time purchasers.

Proportion Of Restaurant Sales

Summary

Most restaurateurs have an intuitive sense that their regular customers represent an important part of their overall business success. Our research illustrates just how true this is for the takeaway sector.

The implications are clear. Invest in customer acquisition …  and invest even more in keeping your existing customers coming back.

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About Judopay · Judopay simplifies in-app payments, enable frictionless checkouts and intelligently prevents fraud for leading companies globally. Our payments and mobile experts help guide businesses and their development partners to create best in class apps to make paying faster, easier and more secure. Founded by serial financial technology entrepreneurs in 2012, Judopay is backed by leading venture investors and supported by banking and card scheme partners to offer in-app payments that are simple, frictionless and protected.

Source: Movanta survey of 1,200 UK consumers, Google Consumer Surveys

m-com snapshots

81%

of smartphone purchases was done on spur of the moment - Google

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