Restaurant Marketing: Why Online Ordering Is Becoming a Must
By Anna Johnson on May 17th, 2010Research by General Electric Capital and BigHoller indicates that restaurants are – and should be – embracing online ordering options for their customers.
Firstly, according to GE Capital, restaurants already have an online audience they can capitalize on. GE Capital reckons more than half (56 percent) of consumers visit restaurant websites.
Let me repeat that: 56 percent of consumers visit restaurant websites.
Come to think of it, I recently visited TWO restaurant websites in just the past week. In the first case, I ordered a meal to pick-up; in the second, I reserved a table. In BOTH cases I had no option but to call the restaurant by phone to place my order/reservation.
Now, there’s nothing wrong with using the phone… unless there’s a better way. One that saves time for BOTH the restaurant and the customer. And that is, of course, a mechanism that allows the customer to place their order or reservation online.
BigHoller, which provides an online ordering platform for restaurants, says that most of its restaurants average $2,000 to $10,000 of online orders per month. But that doesn’t take into account the time saved in taking calls, nor the time saved for customers in making those calls.
Of course, there is a cost involved in implementing online ordering software but, ideally, the restaurant should have a system that automatically notifies the kitchen or dining staff (as the case may be) of a new order or reservation, which is ultimately more efficient and cost-effective than its current processes.
Another huge benefit of online ordering is to gather invaluable data about customers e.g. where customers are located, which demographics are most responsive to which kinds of offers, when do most orders come in, and so on. This kind of information has long eluded busy restaurants unable to survey clients; now it can be obtained automatically.
In addition, online ordering allows restaurants to quickly test menus, specials, discounts, upsells and other menu and marketing initiatives. Restaurants can also invite customer comments via online feedback forms.
Perhaps most significantly, BigHoller has found that 85 percent of customers who go to a restaurant website offering online ordering will end up placing an order. Anyone else want an 85 percent conversion rate?
If you run a restaurant or consult with restaurants, this is exciting news. But even if you’re not in the restaurant trade, ask yourself: what other local businesses could benefit from moving some of their functions, such as placing orders, online?
