A restaurant manager should state the most important KPIs and Metrics the help his track and measure his business. In this article, you will find the key marketing and customer experience KPIs so that you make sure that your marketing strategy is doing well and that you provide the best customer experience.
Social Media and Marketing KPIs:
Today, most customers search for any restaurant on the internet before visiting. They believe in each other’s opinions and ratings. Thus, your online presence has the ability to make or break your business. Accordingly, it is important to monitor and track your website and social media platforms effectively and to implement a strategy that brings all of your marketing efforts together.
Customers prefer the restaurant that its website is well optimized where they can easily find what they are looking for, such as opening times, closing times, offers, address or the menu. If your website does not meet their needs, it will not take much for them to leave the site and look for better options. The fewer clicks it takes to learn about your restaurant, the better.
Social media and marketing KPIs include:
1. Social Engagement KPIs and Metrics:
Social media can consume a lot of time and effort. If you devote time and money to maximize your presence on social media, you need to understand whether it is worth it. Here, you find the KPIs and metrics that measure the level of interaction between your restaurant’s social media account and current and potential customers. These measures help you know how your social media marketing efforts are paying off.
- Engagement rate: The level of interaction between your social media profile and customers.
- Likes: The number of clicks on the “Like” buttons in your post.
- Comments: The number of people leaves on your posts.
- Shares: The number of shares of a post on Facebook, Twitter, or Pinterest.
2. Website Traffic KPIs and Metrics
Your website should be your first promoting channel. It must work 24/7 to pull new customers to your restaurant. These KPIs are reliable indicators of how well your website is performing and can be easily detected in your Google Analytics data.
- Referral Source: A beneficial way to look at your traffic is how it crashes by referral source. Knowing how many people visit your site through organic, referral, social, or paid search will give you a general insight into which marketing channel drives the most traffic to your site.
- Bounce rate: It refers to the percentage of visitors who enter the site and then leave (“bounce”) rather than continuing to view other pages within the same site. If engaging customers in your content is a priority for your business, you need to measure and track the average of your pages per session.
- Keyword rankings and search traffic: Monitor your keyword rankings and search traffic so that you can measure whether the right people “targeted customers” likely find your restaurant.
- Conversions: An action that is counted when someone interacts with your ad (for example, clicks a text ad or views a video ad) and then takes an action that you have defined as valuable to your business, such as an online purchase or a call to your business from a mobile phone.
Call Tracker and Google Analytics enable you to track key conversions for your restaurant, such as phone reservations and online orders.
Customer experience KPIs:
Being a restaurant manager, you should take customer satisfaction as a top priority, no matter the size of your restaurant. To retain customers, you need your staff to be smiling and efficient to encourage return visits.
Customer experience KPIs include:
1. Online reviews
The number of online reviews and average review scores on sites such as Tripadvisor, Facebook, Google My, and Yelp.
2. Customer retention or Repeat Visitor rate:
The customer retention rate in your restaurant is the percentage of customers you hold, relative to the number you had at the beginning of a specified time period.
Measuring this KPI is very important when you consider the cost of attracting new customers. To keep your restaurant growing, you need to make up for every customer you lose on top of attracting new customers. Your customer retention rate also helps you measure the loyalty of your existing customers and the level of your customer service.
Here is how to calculate Customer retention rate:
Customer retention rate = ((Number of customers at end of the period – Number of new customers acquired during that period) ÷ number of customers at the start of period)) x 100
It might be difficult to find the data to plug into the formula of the customer retention rate. However, systems with built-in customer relationship management tools can enable you to track customer history.
3. Average table occupancy:
Average table occupancy tells you on average how many customers visited your restaurant during a given time period
Here is how to calculate average table occupancy:
Average table occupancy = number of occupied tables / total number of available tables
4. Table turnover rate:
A poor table turnover can really harm your restaurant’s profit margins. Thus, it is crucial to focus on this specific metric. You will need to make sure your table turnover is optimized so that your customers can fully enjoy their dining experience and waiting time is decreased.
Here is the formula to calculate your table turnover rate:
Table turnover rate = period of time/number of tables served during that time period
After collecting data on your KPIs, it is just equally important to closely analyze the information to understand why your restaurant is achieving these results, whether good or bad.
This way, you can precisely identify ways to improve performance and develop an action plan based on actual data. It is important to create and track KPIs, but also they should be linked to the overall goal of your restaurant.