How can restaurants improve customer retention using an in-house online ordering system?

As the world moves towards digitization, online ordering systems for restaurants are becoming more popular by the day. Customers today prefer to order food online instead of physically going to a restaurant, and the trend is only going to increase in the future. Restaurants can capitalize on this trend by having an in-house online ordering system. Not only does it make the ordering process more convenient for customers, but it can also help restaurants improve customer retention. In this blog, we’ll explore how restaurants can improve customer retention using an in-house online ordering system.

What is an in-house online ordering system?

An in-house online ordering system is a software application that allows customers to order food online directly from a restaurant's website or mobile app. It’s essentially a digital platform that connects customers with the restaurant's menu and allows them to place an order for delivery or pick-up. An in-house online ordering system is different from third-party online ordering platforms such as GrubHub, Uber Eats, or DoorDash, as it’s owned and operated by the restaurant itself.

Why is an in-house online ordering system important for restaurants?

There are several reasons why an in-house online ordering system is important for restaurants. Let's take a look at some of them.

• Cost savings: Third-party online ordering platforms charge a commission fee for each order placed through their platform. This fee can range from 15% to 30% of the total order value, which can eat into a restaurant's profit margins. By having an in-house online ordering system, restaurants can avoid these fees and keep more of their revenue.
• Brand control: Third-party online ordering platforms can sometimes misrepresent a restaurant's brand by using inaccurate images or descriptions of the restaurant's menu items. With an in-house online ordering system, restaurants have complete control over their brand and can ensure that their menu items are presented accurately.
• Customer data: When customers order through a third party online ordering platform, the platform retains the customer data, such as email addresses and order history. With an in-house online ordering system, restaurants can collect this data themselves and use it to improve their marketing and customer retention efforts.
• Convenience: In-house online ordering systems make the ordering process more convenient for customers. Customers can place orders directly from the restaurant's website or mobile app, without having to navigate through a third-party platform. This can lead to increased customer satisfaction and retention.

How can restaurants improve customer retention using an in-house online ordering system?

Now that we’ve established why an in-house online ordering system is important for restaurants, let's take a look at how it can be used to improve customer retention.

1. Offer discounts and promotions through the online ordering system

One way to encourage customers to use the in-house online ordering system is by offering discounts and promotions that are only available through the platform. For example, restaurants can offer a discount code for first-time online orders, or a free dessert for orders over a certain amount. By offering exclusive discounts and promotions through the online ordering system, restaurants can incentivize customers to use the platform and increase customer retention.

2. Collect customer data and use it for personalized marketing

As mentioned earlier, an in-house online ordering system allows restaurants to collect customer data such as email addresses and order history. Restaurants can use this data to send personalized marketing emails to customers. For example, if a customer frequently orders pizza through the online ordering system, the restaurant can email them with a promotion for their favorite pizza topping. By sending personalized marketing emails, restaurants can improve customer retention by making customers feel valued and appreciated.

3. Provide a seamless and user-friendly online ordering experience

Customers expect a seamless and user-friendly online ordering experience. If the online ordering system is difficult to use or the menu items are unclear, customers may become frustrated and decide not to order from the restaurant again. To improve customer retention, it’s essential for restaurants to provide a user-friendly online ordering experience. This can be achieved by:

• Making the online ordering system easy to navigate with clear categories and descriptions for menu items
• Including high-quality images of menu items to help customers visualize their order
• Offering a simple checkout process with multiple payment options
• Providing clear information on delivery and pick-up options and times
• Offering the option for customers to save their order history and frequently ordered items to make future ordering even easier

By providing a seamless and user-friendly online ordering experience, restaurants can improve customer satisfaction and retention.

4. Utilize customer feedback to make improvements

An in-house online ordering system allows restaurants to collect feedback from customers about their ordering experience. Restaurants should take advantage of this feature and use customer feedback to make improvements. For example, if customers are consistently complaining about a slow checkout process, the restaurant can make changes to improve the checkout speed. By listening to customer feedback and making improvements based on that feedback, restaurants can show customers that their opinions are valued and improve customer retention.

5. Provide excellent customer service

Even with a user-friendly online ordering system, customers may still have questions or concerns. Restaurants should provide excellent customer service to ensure that customers feel valued and cared for. This can be achieved by:

• Providing clear contact information for customer service, including phone and email
• Responding promptly to customer inquiries and concerns
• Offering a customer loyalty program to show appreciation for repeat customers
• Providing refunds or replacements for orders that don't meet the customer's expectations
• Taking responsibility for any mistakes made during the ordering or delivery process and offering a solution

By providing excellent customer service, restaurants can improve customer retention by building trust and loyalty with customers.

Conclusion

An in-house online ordering system is an essential tool for restaurants looking to improve customer retention. By offering discounts and promotions through the online ordering system, collecting customer data and using it for personalized marketing, providing a seamless and user-friendly online ordering experience, utilizing customer feedback to make improvements, and providing excellent customer service, restaurants can build customer loyalty and keep customers coming back. As the world becomes increasingly digitized, an in-house online ordering system is a necessary investment for any restaurant looking to stay competitive and retain customers.

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