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How to Use Customer Data to Power Your Restaurant Business

How to Use Customer Data to Power Your Restaurant Business

Picture of Clarissa Buch Zilberman
Clarissa Buch Zilberman

Customer data is one of the most valuable tools to help transform your restaurant. With it, you can personalize the dining experience, tweak your menu, improve service, target your marketing, and build loyalty. 

Ever wonder how some restaurants effortlessly anticipate their guests’ needs? From perfectly timed recommendations to remembering favorite orders, they create loyalty that’s hard to match.  

The secret ingredient? Customer data. Understanding your guests isn’t optional—it’s essential. Discover how tapping into customer insights can transform your restaurant and elevate the dining experience. 

The customer data goldmine

Every interaction a guest has with your restaurant generates valuable data. This can include: 

  • Basic information: Names, contact details, birthdays, and anniversaries. 
  • Order history: Dishes ordered, frequency of visits, average spend. 
  • Feedback: Reviews, surveys, social media mentions. 
  • Online behavior: Website visits, email interactions, social media engagement. 

Gathering and analyzing this data was historically a time-consuming, manual process. (Think sifting through stacks of paper receipts, physically entering customer information into spreadsheets, and relying heavily on anecdotal observations.)  

But modern restaurant software and point-of-sale (POS) systems make it easier than ever to turn raw data into actionable insights that can boost loyalty and drive revenue.  

From automated guest profiles to detailed sales reports, these tools empower operators to truly understand their diners and make data-driven decisions to enhance their overall experience. 

Ways to use customer data in restaurants

Personalize the dining experience 

One of the most powerful ways to use customer data is to personalize the dining experience. This can be as simple as greeting a regular guest by name, remembering their favorite dish, or offering a complimentary dessert on their birthday. These small gestures can go a long way in building loyalty and fostering a sense of connection. 

Back-of-house restaurant software can help automate these personalized touches. For instance, customer relationship management (CRM) platforms can store guest preferences and trigger automated messages or reminders as soon as they step through the door.  

Tailor your menu

Your menu is the heart of your restaurant, and customer data can help transform average plates into bestselling dishes. Modern restaurant software is equipped with robust reporting and analytics tools that make it easy to: 

  • Identify popular dishes: Analyze sales data to pinpoint bestsellers and guest favorites. This helps operators understand what resonates with diners and make informed decisions about menu changes. 
  • Spot trends: Track ordering patterns over time to identify emerging trends. Are certain dishes gaining popularity? Are there seasonal fluctuations? Use these insights to adjust the menu accordingly. 
  • Experiment with confidence: Customer data can be used to test new dishes or menu variations. For example, offer a limited-time special and track its performance to see if it warrants a permanent spot on the menu. 
  • Uncover upselling and cross-selling opportunities: By finding dishes that are frequently ordered together, operators can create combo meals or special promotions that cater to popular combinations and boost average check size.  

Case study

Bavarian Bierhaus Managers Save Nearly 30 Hours Per Month with Restaurant365

Enhance customer service

Use restaurant software to turn feedback into fuel for improvement, ensuring customer service is always top-notch. 

For example, operators can use guest data to:  

  • Analyze feedback: Pay close attention to guest reviews and surveys. What are diners saying about your food, service, and ambiance? Use this feedback to address concerns and make necessary improvements. 
  • Track complaints: Monitor complaints and identify recurring issues. This helps proactively address problems and prevent them. 
  • Measure satisfaction: Use surveys or feedback forms to gauge overall guest satisfaction. Use this as a benchmark to measure progress and identify areas for improvement. 

Target your marketing efforts

Gone are the days of generic marketing blasts. Customer data empowers operators to ditch the wide net and focus on specific targets.  

Start by segmenting guests into meaningful groups, whether based on demographics, preferences, or spending habits. For example, create a segment of guests who frequently order vegetarian or vegan dishes or perhaps one focusing on families with young children.  

Next, deliver tailor-made promotions that speak directly to their desires. For vegetarians and vegans, consider sending them exclusive offers on new plant-based menu items. For the family segment, email them an invitation to a kid-friendly event or menu launch at your restaurant. 

Boost loyalty and retention

Acquiring new guests is important, but fostering the loyalty of existing ones is even more critical. Customer data can help build loyalty and keep diners coming back for more. Consider exploring tactics like: 

  • Loyalty programs: Reward your most frequent guests with exclusive perks, discounts, or even a first taste of new menu items. 
  • Birthday and anniversary offers: Show guests you care by offering special treats on their special occasions. 
  • Personalized recommendations: Use customer data to suggest dishes or drinks they might enjoy based on their past orders. 
  • Surprise and delight: Occasionally surprise loyal guests with unexpected gestures, such as a complimentary appetizer or a handwritten thank-you note. 

Modern restaurant software can help manage loyalty programs, track customer milestones, and automate personalized recommendations. 

Embrace data-driven hospitality

Customer data is one of the most valuable tools to help transform your restaurant. With it, you can personalize the dining experience, tweak your menu, improve service, target your marketing, and build loyalty. 

The best part is you don’t need to spend hours figuring out what your customers want. The right restaurant software makes it easy to gather and use customer data to your advantage. 

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