5% Customer Retention = 25% to 125% in your Bottom Line
It’s so hard to get the same pizza, twice in a row, and at the same restaurant!
It seems simple to manage making the same dough every time but… why is it that almost nobody achieves this?
The Time, Effort and Money Investments required to open a successful restaurant business are so big that they turn this business into the Riskiest Sport in the World.
The bigger your Business is, the Harder it is to keep your Product’s Constancy
You Invest Millions in your Kitchen’s Equipment and in decorating your restaurant, but a mistake while Preparing your Dough could ruin your Business.
Allow me to demonstrate this briefly.
Nowadays, negative customer experiences seem to exceed the number of positive experiences by an alarming amount.
Restaurants lose between 10% and 30% of their clients annually, and even more Online.
And Financially they Need a lot of interactions with their clients before they can pay off their acquisition costs. (with is undoubtedly a piece of information you should always keep in mind).
Loyalty can be attained through consistency because consistency leads to trust in the company.
Do the math.
A few days ago I read a short article that posed some interesting questions…
What does it cost you to get a customer, and what does it cost to keep them?
How long does it take you to break even on the cost of your sales and marketing investments before they become profitable?
If you could keep just a small percentage of the customers you are now losing, what would it mean in real dollars to your company?
It’s well publicized that an increase of only 5% in your customer retention could mean a boost of 25% to 125% on your bottom line.
The yield in your business depends on your fixed costs—the higher the fixed cost the higher the boost in profitability. In fact, according to Harvard researchers, you can expect to…
Increase your Profits from 25% -125% if you increase repeat customer visits by just 5%.
Do the math and think…
Is it worth putting Constancy First?
Allow me to Show this with an Example as Real as Life Itself…
If your Pizza chef doesn’t measure the pH and hardiness of the water he uses for kneading, he won’t be able to get the same dough every time.
Not to mention the typical mistakes done daily with the amount of ingredients or kneading time by any pizza chef who has an iPhone…
Nowadays interruptions and distractions are hard to control.
A typical 60 pound dough can be transformed into more or less 120, 12-inch pizzas.
If the pizza chef forgets to add salt (or gets the quantities wrong because he didn’t tare the scale), from a single dough batch he could get 120 saltless and tasteless pizzas…
You’ve now lost diners who would’ve come back again and again.
You’ve also lost their word-of-mouth positive referrals.
Posted on: September 29, 2015, by : j.delamorena