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"On Demand" in the restaurant world? April '07
For the last 15 years 'the day job' has been in the
technology world. Computer technology and the
corporate customer.
Like any industry there are fashions and trends but these
are essentially wrapped around an unchanging core
need - how to get ahead and stay ahead.
Since the dawn of entrepreneurship, technology has
played a fundamental part in feeding the need: from a
revolutionary breakthrough to the more endemic,
evolving and re-modelling of the metaphorical wheel.
Today, corporate businesses scratch their heads about
"customer relationship management." Indeed they
puzzle over the bigger picture of how to manage their
perceived "on demand" business needs.
So what are these things? And what does technology do
that is so clever and helpful?
Every business has customers. Without customers
there is no business. A business produces a product or
service, markets to customers and then services those
customers.
There exist a few useful truths (in the corporate world) -
its around 10 times more easy to sell to an existing
customer than find a new one and a completely satisfied
customer is around 80% more likely to do business with
you again than a customer that is 'just satisfied'.
First step - get as many completely satisfied customers
as possible.
Customer relationship management tries to do just that -
at the basic level capture all information about needs
and preferences and ensure that there is a single point
of reference for all combined dealings with the customer.
So for example - you have three separate products from
your bank; a mortgage, home insurance and a current
account. Customer relationship management dictates
that it would not matter if I were discussing a new
product (a loan), phoning up to complain about bank
charges, receiving a mail shot about a credit card, or
completing an online application for a business account
- all the information about me would be at the centralised
fingertips of the bank: Enabling the servicing of my
needs effectively and efficiently and, importantly, selling
me something more.
Does your bank provide this level of service? Guess not.
Like me, you repeat and correct your personal
information many times depending on who you are
talking to in the bank and frustrating 'glass walls' exist
between different product departments.
Still, 'customer relationship management' remains the
goal.
This is not to be critical of banks. Banks are very big
companies and have diversified their offerings slowly
over time - each area of the business developing in its
own silo. To bring these together into a single picture of
the customer is a major challenge and with the aid of
technology they are undoubtedly making significant
progress.
The birth of the internet took this opportunity and
challenge a stage further. The customer now wants to
do business whenever and wherever they want. Twenty
fours hours a day, seven days a week, anywhere in the
world.
For the last 15 years 'the day job' has been in the
technology world. Computer technology and the
corporate customer.
Like any industry there are fashions and trends but these
are essentially wrapped around an unchanging core
need - how to get ahead and stay ahead.
Since the dawn of entrepreneurship, technology has
played a fundamental part in feeding the need: from a
revolutionary breakthrough to the more endemic,
evolving and re-modelling of the metaphorical wheel.
Today, corporate businesses scratch their heads about
"customer relationship management." Indeed they
puzzle over the bigger picture of how to manage their
perceived "on demand" business needs.
So what are these things? And what does technology do
that is so clever and helpful?
Every business has customers. Without customers
there is no business. A business produces a product or
service, markets to customers and then services those
customers.
There exist a few useful truths (in the corporate world) -
its around 10 times more easy to sell to an existing
customer than find a new one and a completely satisfied
customer is around 80% more likely to do business with
you again than a customer that is 'just satisfied'.
First step - get as many completely satisfied customers
as possible.
Customer relationship management tries to do just that -
at the basic level capture all information about needs
and preferences and ensure that there is a single point
of reference for all combined dealings with the customer.
So for example - you have three separate products from
your bank; a mortgage, home insurance and a current
account. Customer relationship management dictates
that it would not matter if I were discussing a new
product (a loan), phoning up to complain about bank
charges, receiving a mail shot about a credit card, or
completing an online application for a business account
- all the information about me would be at the centralised
fingertips of the bank: Enabling the servicing of my
needs effectively and efficiently and, importantly, selling
me something more.
Does your bank provide this level of service? Guess not.
Like me, you repeat and correct your personal
information many times depending on who you are
talking to in the bank and frustrating 'glass walls' exist
between different product departments.
Still, 'customer relationship management' remains the
goal.
This is not to be critical of banks. Banks are very big
companies and have diversified their offerings slowly
over time - each area of the business developing in its
own silo. To bring these together into a single picture of
the customer is a major challenge and with the aid of
technology they are undoubtedly making significant
progress.
The birth of the internet took this opportunity and
challenge a stage further. The customer now wants to
do business whenever and wherever they want. Twenty
fours hours a day, seven days a week, anywhere in the
world.
A few years ago, www.amazon.com were probably the first
to do some very clever customer relationship management
in this space. "Hello Simon, here is your personalised
home page of purchases and interests and here are a list
of things other people bought who have the same interests
as you". Brilliant. One click shopping. Brilliant.
So how about applying some of this smart technology to the
restaurant world?
Diego Masciaga, Restaurant Director at The Waterside Inn
suggests that staff continuity is very important. "If someone
comes in who is a regular customer and we ask for their
name at the door that is not so good." True. The strength of
the brand lives with the personnel. And in the service
industry this will never change. People buy people. I have
not visited a single restaurant where this is not true. And les
arts de tables will always be critical to success. However,
regardless of Michelin Stars the restaurant world as a
whole is missing the customer relationship management
opportunity.
www.toptable.co.uk and www.lastminute.com
are well established sites that market promotions
restaurants wish to offer customers. Very good in so far as
they go.
Should I log onto a restaurant website (and yes I should
have to register) the site should interactively 'know me'.
When I telephone to book they should tell me whether my
favourite table is available or whether there is an alternative
that is well lit and has chairs with arms. They should know
my typical wine budget so that the sommelier never creates
unintentioned embarrassment. They should know when
and what type of promotion to send me. They should know
which dining times typically suit me best. And importantly
for the restaurant, what their typical gross profit will be from
my visit and how much they make from me over a year.
Further there are wider missed opportunities - The likes of
Gordon Ramsay and Nigel Platts Martin own many high
quality restaurants that deliver across the top to middle
market of the Michelin spectrum. Surely if I visit La
Trompette regularly, then a mail shot or a loyalty reward
from Chez Bruce would attract my custom.
The loyalty card concept has been one of the longer
standing byproducts of the search for delivering customer
relationship management coupled with customer
satisfaction. The 21st Century green shield stamps.
Perhaps these still do not go far enough; I don't want to log
on to know what the store is promoting to all, I want to log
on to know what the store is promoting especially in line
with my purchasing habits.
While retail stores have become experts at delivering the
schemes (in so far as they go), why not restaurants?
Should I visit Gordon Ramsay Royal Hospital Road three
times in a year then I get a free bottle of champagne next
time I visit Claridgesor if I visit The Glasshouse twice in a
month then I get a two for one offer at The Square.
And what about capturing and encouraging 'referrals' - refer
three customers to one of our restaurants and have a bottle
of champagne on your next visit. From private golf clubs, to
Sky TV to 3 Mobile this is well understood concept and
practice. But not as yet with restaurants.
Unlike banks, that have responded to their evolving needs
with technology, restaurants can really grasp the nettle. A
relatively blank technology canvas. The likes of Gordon
Ramsay and Nigel Platts Martin should know exactly how
much I spend on their restaurants a year and everything
about how I go about it. They should reward or encourage
me accordingly.
I know this is one area with which my bank is all to familiar
to do some very clever customer relationship management
in this space. "Hello Simon, here is your personalised
home page of purchases and interests and here are a list
of things other people bought who have the same interests
as you". Brilliant. One click shopping. Brilliant.
So how about applying some of this smart technology to the
restaurant world?
Diego Masciaga, Restaurant Director at The Waterside Inn
suggests that staff continuity is very important. "If someone
comes in who is a regular customer and we ask for their
name at the door that is not so good." True. The strength of
the brand lives with the personnel. And in the service
industry this will never change. People buy people. I have
not visited a single restaurant where this is not true. And les
arts de tables will always be critical to success. However,
regardless of Michelin Stars the restaurant world as a
whole is missing the customer relationship management
opportunity.
www.toptable.co.uk and www.lastminute.com
are well established sites that market promotions
restaurants wish to offer customers. Very good in so far as
they go.
Should I log onto a restaurant website (and yes I should
have to register) the site should interactively 'know me'.
When I telephone to book they should tell me whether my
favourite table is available or whether there is an alternative
that is well lit and has chairs with arms. They should know
my typical wine budget so that the sommelier never creates
unintentioned embarrassment. They should know when
and what type of promotion to send me. They should know
which dining times typically suit me best. And importantly
for the restaurant, what their typical gross profit will be from
my visit and how much they make from me over a year.
Further there are wider missed opportunities - The likes of
Gordon Ramsay and Nigel Platts Martin own many high
quality restaurants that deliver across the top to middle
market of the Michelin spectrum. Surely if I visit La
Trompette regularly, then a mail shot or a loyalty reward
from Chez Bruce would attract my custom.
The loyalty card concept has been one of the longer
standing byproducts of the search for delivering customer
relationship management coupled with customer
satisfaction. The 21st Century green shield stamps.
Perhaps these still do not go far enough; I don't want to log
on to know what the store is promoting to all, I want to log
on to know what the store is promoting especially in line
with my purchasing habits.
While retail stores have become experts at delivering the
schemes (in so far as they go), why not restaurants?
Should I visit Gordon Ramsay Royal Hospital Road three
times in a year then I get a free bottle of champagne next
time I visit Claridgesor if I visit The Glasshouse twice in a
month then I get a two for one offer at The Square.
And what about capturing and encouraging 'referrals' - refer
three customers to one of our restaurants and have a bottle
of champagne on your next visit. From private golf clubs, to
Sky TV to 3 Mobile this is well understood concept and
practice. But not as yet with restaurants.
Unlike banks, that have responded to their evolving needs
with technology, restaurants can really grasp the nettle. A
relatively blank technology canvas. The likes of Gordon
Ramsay and Nigel Platts Martin should know exactly how
much I spend on their restaurants a year and everything
about how I go about it. They should reward or encourage
me accordingly.
I know this is one area with which my bank is all to familiar
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