The Times Australia

Business and Money
The Times

Revenue & Retention: Focusing on Relationships Over Reservations to Drive Greater Success

  • Written by Paul Hadida, General Manager APAC at SevenRooms

In the competitive hospitality industry, restaurants, bars, and cafes often measure success by the number of reservations they receive. After all, reservations are easy to count and compare, and a straightforward way of identifying revenue on a given day. Yet, focusing solely on the next influx of reservations can leave restaurants without a long-term strategy when peak season ends. To truly flourish, venues must look beyond simply the number of new reservations each week. Instead, they should focus on how they can market to their existing database of guests to retain their loyalty and get them back more often.

Thinking longer-term

Reservations are undoubtedly crucial for any restaurant. They help fill seats and bring in revenue each day. However, viewing them as the sole measure of success tells us very little about the long-term health of a business. Instead of focusing solely on getting guests through their doors, venues should focus on how they can encourage diners to return time and again. By using guest experience to build relationships, venues can encourage repeat visits, boosting their sales and profits.

Distinguishing your guest experience

In a competitive market of brilliant venues, guest experience can be a point of difference. According to SevenRooms’ research, 34% of Australian diners would revisit a venue if offered a complimentary drink or appetiser. The research also revealed that personalised offers based on a guest's previous visits and dining credits for reaching a new loyalty tier would also persuade guests to return.

By providing an exceptional experience, venues can deliver the value that truly matters to diners. That’s what encourages them to return to a venue and recommend it to their network. Over half (53%) of Australian diners consider personal referrals crucial when selecting a restaurant. When operators shift their perspective and recognise that a reservation is just the start, not the end goal, they create a path to long-term success.

Flipping the strategy

So how can venues pivot their strategies to focus on relationships and retention over reservations? The first step is mindset, and viewing a reservation not as ‘job done’ but ‘game on’. First, they must think of ways to personalise a guest’s experience. Using approved guest data, venues can understand guests' habits; what they typically order, how much they spend, how often they visit, when their birthday is, what they might be allergic to, and more.

They can then use this information to create personalised experiences and offers that show the venue understands them personally and is catering the experience to their needs. They can also create loyalty programs that reward guests for their continued support, and offer incentives like dining credits, exclusive events, or discounts for hitting loyalty milestones. Referral programs are effective too, helping venues encourage guests to refer friends and family by offering incentives for them to do so. These programs can go a long way in encouraging repeat visits.

Utilising data is key across the entire journey. Data can enable venues to understand not only which channels theirreservations are coming through, but also which have the most repeat diners and bring in the most dollars.. That means venues can prioritise their marketing efforts towards their most valuable channels to bring in the most sales and profits to their business.

The data can also be used to create automated marketing campaigns. Send personalised offers, event invitations, and special promotions to keep guests engaged and returning. Email marketing, especially when personalised towards the guest, is an important part of the overall experience and a key way to encourage guests back.

Boosting revenue beyond the summer rush

As the start of the summer season approaches, it's the perfect time for operators to shift focus from short-term reservations to long-term relationships. The upcoming season brings opportunities, but it is the approach to customer relationships and retention that will determine success for venues.

In the hospitality industry, success doesn't solely depend on the number of reservations; it thrives on the strength of the relationships you build and the retention you cultivate. It's not just the reservations that matter, but the lasting connections forged with guests, helping you unlock greater retention and revenue.

3 Helpful Tips You Can Use for Breaking Down Barriers in Your Career Journey

In a perfect world, everyone would start with equal footing when climbing up the career ladder. However, this isn't the case in reality, where being of a certain ethnicity, graduating from popular universities, or even having “pretty privilege” can p...

The Ethical Considerations of AI Chatbots: Balancing Innovation with Responsibility

The rise of AI chatbots has dramatically transformed how businesses interact with customers. These intelligent tools can handle inquiries, provide support, and even personalize user experiences. However, with this innovation comes a host of ethical c...

The Benefits of Stainless Steel in Sustainable Products Manufacturing

The Benefits of Stainless Steel in Sustainable Products Manufacturing A large part of what it takes to manufacture sustainable products ultimately boils down to choosing the right material. For this reason, stainless steel has become a popular cho...

Experienced Parramatta Criminal Lawyer: Legal Defence You Can Trust

👨‍⚖️Experienced Parramatta Criminal Lawyer ⚖️ Offering trusted, proven legal defence⚡️We fight for your rights with dedication & commitment🤝"#LegalHelp🔐 Parramatta, located in the heart of Western Sydney, is a lively area known for its cultura...

Times Lifestyle

Warning to Grey Nomads - Pop Top Caravan Hidden Risks

To pop or not to pop… that is the question. Hybrid pop top caravans are a popular choice for many caravanners, but ar...

How to Ensure You Don’t Miss Out on a Ticket for the Next Huge Ev…

It can be a moment of huge excitement when a concert or huge event is announced to be coming to a nearby venue. There are l...

Coast of Gold Bursts into Australian Market with Award-Winning Sh…

An Australian brand centred on authentic West African flavours is making massive waves in the premium foods and condiment...

Times Magazine

The Science Behind Neodymium Magnets: How They Work and Why They’re So Powerful

In the world of magnets, neodymium magnets are the rock stars. Despite their small size, they are the big hitters. The power and performance of neodymium magnets make them essential in everything from earbuds to electric vehicles. But what exactly ...

The Ethical Considerations of AI Chatbots: Balancing Innovation with Responsibility

The rise of AI chatbots has dramatically transformed how businesses interact with customers. These intelligent tools can handle inquiries, provide support, and even personalize user experiences. However, with this innovation comes a host of ethical c...

Segway ZT3 Pro All-Terrain Electric Scooter

Segway-Ninebot, the global leader in the micromobility transportation solutions and robotic service industries is announcing its brand-new ZT series of electric scooters with the ZT3 Pro in Australia. The Segway ZT3 Pro combines cutting-edge smar...