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Ray Kelley - Using AI to Attract and Retain Guests - September 2024


Attract. Maximize. Retain:  How to use AI to get customers in the door, maximize their visit, and keep them engaged after they leave.


by Ray Kelley, SVP and Partner, Wray Executive Search


Here are some ideas to utilize AI’s power to enhance every stage of a customer’s journey. From attracting customers, to maximizing revenue per visit, to maintaining relationships after a meal. AI provides data-driven solutions that can supercharge your restaurant’s growth.


Attracting Customers: Using AI to Drive Traffic

In a crowded market, getting customers through the door is the first and often the toughest challenge. AI enables restaurants to use customer data in ways that were once unimaginable, offering new strategies to attract diners.


Hyper-Personalized Marketing: AI analyzes vast amounts of customer data, including dining history, preferences, and behavior patterns, to create tailored marketing campaigns. These AI-driven insights can help deliver hyper-personalized offers and ads through email, social media, or mobile apps. For example, AI might identify that a customer frequently dines out on Friday nights and sends them an exclusive discount a few hours before they usually make reservations.


Dynamic Promotions: AI enables restaurants to offer dynamic promotions based on real-time factors such as time of day, local events, or even weather patterns. If your restaurant experiences slow weekday lunch periods, AI can create time-sensitive offers to nearby office workers, driving foot traffic during off-peak hours.


Social Listening and Trend Spotting: AI tools like social listening software track online conversations and trending food topics. By tapping into trending dietary preferences or popular dishes, restaurants can adjust their marketing to align with current customer interests.


Maximizing Profits In-Store: AI-Powered Revenue Strategies

Once customers are in the door, AI can help maximize spend and overall profitability. By analyzing data on customer behavior, sales trends, and operational efficiency, AI offers numerous ways to drive revenue while maintaining a seamless dining experience.


Smart Menu Design: AI-driven menu optimization tools analyze sales data and ingredient costs to highlight which dishes offer the best margins. These tools can suggest ideal menu placements for high-margin items, ensuring they catch customers’ eyes first. Additionally, AI can help refine menu design to encourage upsells—whether it’s by recommending profitable side dishes or popular pairings that customers are likely to choose.


Dynamic Pricing Models: AI-powered dynamic pricing can optimize prices based on real-time factors like demand, ingredient costs, or even competitor pricing. For instance, during peak hours or special events, AI can recommend increasing prices slightly to maximize revenue without alienating customers. Conversely, it can lower prices during slow periods to fill more seats.


AI-Driven Upselling: AI can equip your staff with personalized upsell suggestions by analyzing individual customer preferences or real-time trends. For example, if a guest frequently orders a specific dish, AI can suggest premium add-ons or pairings that align with their taste. This real-time data-driven approach increases average order value and enhances the customer experience by providing relevant recommendations.


Keeping Customers Engaged Post-Visit: AI to Build Loyalty and Retention

Customer acquisition is only the first step; keeping them coming back is the ultimate goal. AI can help foster customer loyalty by delivering personalized experiences even after they leave.


AI-Powered Loyalty Programs: AI can optimize loyalty programs by tailoring rewards to individual customers. By analyzing purchase history, AI can suggest relevant offers that align with a customer’s preferences, increasing the likelihood they’ll return. For example, a frequent diner might receive an exclusive reward for their favorite dessert or a discount on a meal they’ve ordered repeatedly. This personalized approach helps build deeper, more meaningful relationships with customers.


Automated Follow-Up and Feedback: AI tools can automate follow-up emails and surveys after a customer’s visit, making it easy to collect valuable feedback and address any concerns in real-time. Using sentiment analysis, AI can detect negative reviews or dissatisfaction in feedback, prompting your team to respond quickly and effectively. Swift action on customer concerns can turn a negative experience into a positive one, building loyalty and retention.


Predictive Customer Engagement: AI’s predictive capabilities can help forecast when a customer might visit again based on past behavior, allowing your restaurant to proactively send personalized offers or event invitations. If AI predicts that a customer usually dines out every two weeks, you can send a timely reminder or offer that nudges them back into your restaurant right before their next anticipated visit.


Social Media Engagement: AI-powered tools can analyze customer interactions on social media to identify key touchpoints for engagement. By understanding what your customers are sharing about their dining experience—whether it’s a specific dish, event, or ambiance—restaurants can create targeted campaigns that foster deeper connections with diners.


By embracing AI, restaurants can not only keep pace with the competition but stay ahead of the curve, providing a more personalized, efficient, and profitable dining experience. The future of restaurant success lies in how well businesses leverage AI to build lasting customer relationships while driving sustainable growth.

 

Ray Kelley

(828) 318-9010

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