How to Make the Most of Zyda’s Powerful CRM Tool
By Ramzi Barakat
Personalization can be a powerful weapon in your restaurant's arsenal. It improves your customers' overall experience, hence increasing their loyalty and encouraging them to spend more and more on your delicious dishes.
However, personalization is about more than slapping your customers' names at the beginning of each promotional SMS message you send them. It is also about treating each customer differently depending on previous interactions.
This is why we have worked hard here at Zyda to develop a CRM tool to help you segment your customers.
What does Zyda's CRM tool do?
Zyda's CRM, short for customer relationship management, breaks down your customer base into six segments according to their spending habits. It uses the RFM model, which stands for recency, frequency, and monetary value.
Allow me to explain:
Let's say that you have a customer named Ahmed. Now, Ahmed is a big fan of yours; he orders every day and usually orders some of your most expensive dishes.
So, if you were to use the RFM model, you would find that since Ahmed just made an order yesterday, he scores a perfect five on the recency scale.
And because he orders every day, he scores another perfect five on the frequency scale.
Finally, because Ahmed usually orders the most expensive items on your menu, he scores one more perfect five on the monetary value scale.
To repeat, here are his scores:
- Recency = 5
- Frequency = 5
- Monetary value = 5
Thanks to those perfect scores, Ahmed is what we call a Champion — a customer so loyal that he probably sings your praises to whoever is willing to listen.
Now that you understand how Zyda's CRM uses the RFM model to categorize customers, let's dive right into the different segments.
What are the segments offered by Zyda's CRM?
As we just saw, these are your most loyal customers. They order frequently and aren't afraid to splurge on your scrumptious food.
Even though these customers are less passionate about your menu than Champions, loyal customers still order from you frequently. That said, their most recent order was probably a while back.
These are customers who just ordered from you recently and might have spent a pretty penny. But it is still too early to classify them as loyal customers.
As the name may suggest, these are customers who have just had their first or second interaction with you.
Although these customers may have ordered from you frequently in the past, they have yet to make any recent orders. So, while they might have been loyal customers at one point in time, they currently need some attention from you to bring them back.
Not only did these customers make their last purchase a while ago, but they also spent less money compared to your average order value. Moreover, their total number of orders is quite low.
How can you leverage these insights from Zyda's CRM to your advantage?
When dealing with customers, it's important to remember that they're not all created equal. Different customers will respond to different approaches, and you should tailor your strategy accordingly.
Dealing with Champions
You already know that Champions are loyal. So, rather than offering them discounts, you should focus on enrolling them in loyalty programs and new product trials. You might also want to consider value-added offers and provide recommendations based on their previous purchases.
Additionally, seeing as these are your biggest fans, you should cherish their opinions. That means asking them to provide feedback on your products regularly.
To make matters more concrete, here are a few more suggestions to explore in dealing with your Champions:
A. If you are releasing a new dish, invite your Champions to try it out and give you feedback. This can be an excellent way to test and improve your dishes before releasing them to the rest of the general public.
B. If a Champion is ordering a sandwich, encourage them to make it a combo. And, if they are ordering a combo, why aren't they supersizing it?
C. To show how much you value these Champions, always celebrate the little occasions with them, such as the anniversary of the first time they ordered from you.
D. Send them an SMS message encouraging them to try out a dish they have never ordered before while assuring them that they will love it based on their previous orders.
E. Give them a juicy offer in exchange for a solid review on Google.
Dealing with Loyal customers
For these repeat visitors, you might want to consider loyalty programs. The idea behind this is that you want to increase their order frequency and monetary value, turning them into Champions.
In addition to loyalty programs, you should also consider ways to build and maintain a pleasant relationship with them.
Here are some suggestions:
A. You can give them an offer telling them they can get a free dessert if they spend more than a certain amount. After all, you want to encourage them to spend more.
B. For every 10th order, loyal customers can get a free meal or dish.
C. On their birthdays, you can send them a buy one, get one free offer.
Dealing with Promising customers
Everything we said about loyal customers applies here as well. The only difference is that since these Promising customers are somewhat at the beginning of their relationship with you, you may want to use limited-time offers to encourage them to take action.
Here are some suggestions:
A. Once they hit the ten orders mark (i.e., they have made ten orders from your store), you can give them a limited-time offer of your choosing.
B. At the beginning of any relationship, it is always a great idea to give gifts just because it is Wednesday. So, every once in a while, you can send a Promising customer a text message that looks something like this:
"Free delivery on all orders today at [restaurant website]. Use code [voucher] at checkout. 1st 50 orders receive a free [side dish of your choice]. [restaurant website] To opt out, text [opt-out code] to [opt-out number]. "
Just be sure you use this tactic sparingly, as that may devalue all of your offers.
Dealing with New customers
Seeing as these are first-time buyers, you want to welcome them, but you also want to avoid coming across as pushy or spammy.
So, while what you do matters, you should be mindful of what not to do. For instance, you don't want to send New customers random offers without an apparent reason. After all, they're still quite a ways away from earning your generosity.
In short, be smart about how you use vouchers and offers, especially at the very beginning of the relationship. After a few orders, once they have become Promising customers, you can afford to be more generous with them.
Here are a couple of suggestions:
A. Send them a welcome message, and ask them if they would like to subscribe to your SMS database to receive offers on special occasions, including holidays.
B. Offer them a welcome voucher in exchange for their information, such as their birth date, email, and how they came across your restaurant.
Dealing with Needs Attention
With these customers, reactivation is the name of the game. You want to find different ways to get these people back. And that's especially important because reactivating customers is a lot cheaper than acquiring new ones.
Obviously, limited-time offers can be one way to encourage them to make a purchase. You should also offer recommendations based on past purchases, especially if you have a new product that works perfectly for them.
Here are a few suggestions:
A. Let's say you have a new seasonal product that you plan to release during Ramadan only. If this item is popular with your Loyal customers, you can recommend it to the Needs Attention segment.
B. Suppose one of your Needs Attention customers has a favorite dish on your menu, one they have ordered several times before. In that case, you should reach out to said customer whenever you offer a discount on that specific dish.
Dealing with Low-Value customers
While your promotional efforts are sure to yield favorable results with any other segment, they'll likely fall on deaf ears with Low-Value customers. This is not to disparage the Low-Value customers, but let's face it, shouldn't your time and money be focused on those more likely to provide a return on investment?
Putting it all together…
In today's competitive marketplace, offering your customers a personalized experience is more important than ever. By tailoring your interactions to each individual customer, you'll create a deeper connection that will lead to loyalty and word-of-mouth marketing. And with Zyda's CRM, you'll have all the tools to understand your customers better and deliver an exceptional, personal experience.
Book a demo now to see how you can harness the power of our CRM and take your customer relationships to the next level.