Leveraging Digital Tech for Better Restaurant Experiences: Key Insights from 2023 Mastercard Study
Exploring AI in Hospitality & Unpacking Rapid Franchise Growth
In the wake of the COVID-19 pandemic, the restaurant industry experienced a seismic shift towards digital interactions, changing the way consumers engage with eateries. This transformation is at the core of a recent Forrester Consulting study commissioned by Mastercard, which uncovers key insights for restaurant operators seeking to maximize their digital engagement.
Embrace the Digital Age
The first key takeaway from the study is that restaurants must wholeheartedly embrace digital transformation. Even though COVID-19 expedited the shift to digital, the trend had already begun, with consumers of all ages growing increasingly comfortable with digital interactions. For example, around 50% of consumers over 50 years old frequently use their devices for tasks like viewing menus and making payments online.
Unlock the Power of Data
The power of data cannot be overstated in enhancing a restaurant's digital strategy. Successful restaurants are leveraging data from a variety of sources - from public consumer data to competitor insights - in crafting their digital touchpoint strategy. This use of data leads to increased customer loyalty and bigger check sizes, indicating a promising return on investment.
Digital Security and Seamless Experience
Ensuring digital engagements are secure and seamless is a crucial aspect of any restaurant's online presence. According to the study, consumers have expressed concerns about privacy and security in their digital engagements. Addressing these issues while creating an intuitive and easy-to-navigate digital experience can build strong digital rapport with consumers.
Hybrid Ordering and Payments
While digital payments and mobile ordering are gaining popularity, particularly among younger generations, the study shows a sizeable portion of customers, especially those over 50, still value person-to-person interactions. This highlights the need for a hybrid approach, balancing digital advancements with traditional ordering methods.
Integrated Digital Tech Throughout Consumer Lifecycle
From exploring the menu to making a payment, every stage of the customer journey presents an opportunity to use digital technology to boost engagement and satisfaction. Partnerships with third-party digital ordering aggregators can help broaden reach and improve operational efficiency. However, operators must develop strategies to maintain their brand identity in these collaborations.
Customer Loyalty Through Digital Strategy
The importance of customer loyalty programs in fostering digital interactions was another crucial finding. The study showed that 40% of consumers are more likely to interact digitally with restaurants that offer special loyalty perks. Moreover, personalization and transparency in loyalty rewards can boost participation and overall satisfaction.
Insights from Digital Touchpoints
Lastly, the study emphasized using insights from digital touchpoints to improve personalization capabilities and enhance loyalty programs. Despite challenges related to privacy, security, and data management, customer personalization is viewed as a significant revenue driver.
The transformation to a more digital restaurant industry is not a trend but the new normal. Operators who effectively leverage digital technologies and data can improve their customer experiences and thrive in this ever-evolving landscape.
Dive into a technological revolution with the latest episodes of "ACCELERATE" and "The Restaurant Report," two podcasts that should be on every foodservice professional's radar. In an episode of "ACCELERATE", host Rob Grimes, the leading voice in foodservice and hospitality technology, is joined by Stephen Smith, founder of StoryFile, for a thought-provoking discussion about the intersection of artificial intelligence and hospitality. Smith explores how this emerging tech can bridge gaps in human connection and preserve corporate culture in hospitality businesses, promising a future where customers can be welcomed by virtual hosts and employees trained by the company's founders.
Meanwhile, "The Restaurant Report," a stalwart in the foodservice podcast scene, takes a deep dive into the success story of Hawaiian Bros, one of the fastest-growing brands in the industry. Join Scott Ford, President & co-CEO of Hawaiian Bros, as he discusses the unique positioning between fast-casual and quick-service restaurants that has fueled the company's rapid expansion. From nine locations in 2020 to franchising 36 locations across various markets in 2023, the story of Hawaiian Bros demonstrates the transformative power of digital commitment in building a successful brand. Don't miss these insightful conversations on "ACCELERATE" and "The Restaurant Report".
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