Do Restaurants Really Need CRM?

“Even restaurants need to use CRM strategies for many aspects of their business, including: gaining insight on their customers and collecting data to better understand and then segment into different niches, targeting their marketing to these niches, calculating the lifetime value of their customers and then treating them accordingly, culling customers that cost, building a relationship with customers and leveraging them for referrals, developing new products and services for the profitable niches, etc. As you can see CRM should touch all aspects of a restaurant business. After all, a restaurant business is about what the company is giving the customer and the customer is a company’s most valuable asset, so a CRM strategy, even a simple one, should be at the centre of the business.


Make sure to avoid these common pitfalls when you are developing your restaurant’s CRM strategy:

  • – Ignoring CRM and thinking that it is a fad and that they needn’t worry about it.
  • – Developing a CRM strategy and applications that are too complicated and big, and getting all excited about it, but then letting it fizzle.
  • – Beginning too big and not being able to manage it. Companies must start slowly, taking baby steps and then grow the strategy.
  • – Not paying attention to what the customer is telling the business. Just charging ahead with one’s own ideas, without thinking about the customer’s needs.
  • – Not using metrics ( LTV, ROI, CPA) to manage a CRM stragey
  • – Not having a strategy of testing that applies many different campaigns, analysing them and using those which work the bes
  • – Treating customers like they are stupid or just a cash cow and not always thinking about what is best for the customer”

– excerpt from a recent interview.