Wednesday, December 25, 2024

Are Your Customers Happy? Price and Branding Insights for Success

 


Consider this, digital guests are less satisfied than dine-in guests. In today's competitive foodservice landscape, ensuring happy customers is more critical than ever for success. New data underscores a critical disparity—customers who dine in are often happier than those who experience a restaurant digitally through delivery, mobile apps, or takeout. According to updated insights shared by Steven Johnson, Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, there's significant room for improvement when it comes to the digital experience.

Johnson reflects on recent findings from Merchant Centric's Happy Customer Index, a robust tool that analyzes millions of online reviews across platforms like Google, Yelp, and TripAdvisor. The data highlights where customer satisfaction lags—and where forward-thinking brands can take action.

 


The Happy Customer Index: Digital Gaps Exposed

Merchant Centric’s study examined over 1.25 million reviews from September 2022 to August 2023, evaluating critical satisfaction metrics such as food quality, order accuracy, and digital ease of use. The key findings?

·         Delivery Services improved notably in satisfaction but still trail dine-in ratings.

·         Mobile App Reviews remain the lowest rated among digital channels.

·         To-Go Orders perform best in comparison but lag behind traditional dine-in service.

Consider these standout insights:

·         The average rating for reviews mentioning "mobile apps" is 2.33 stars out of 5, indicating frustration with glitches, usability issues, and order accuracy.

·         Delivery service mentions average 3.02 stars, a slight improvement year over year, largely attributed to better operational strategies such as digital makelines and location-based tech.

·         To-go orders fare best at 3.40 stars but still fall short of the industry dine-in average of 4.11 stars.

"Guests tell us that the digital experience is not nearly as good as dining in,” said Adam Leff, Co-Founder of Merchant Centric. “However, delivery experiences are improving faster than to-go, thanks to heightened operator attention."

 


Mobile App Challenges: Customer Frustration on the Rise

Many foodservice brands have doubled down on mobile apps to build loyalty, offer exclusive promotions, and personalize messaging. However, when apps underperform, customer frustration skyrockets.

Taco Bell, for example, dominates Reddit conversations among QSR brands (32% of mentions among the top 10) but for all the wrong reasons—consumers consistently voice dissatisfaction with order inaccuracies, app glitches, and overall poor usability.

Even as ratings for mobile apps rose by a modest 10 basis points, the gap remains stark. Brands must recognize that a poor digital experience is no longer an option as digitally-dependent customers expect ease, speed, and accuracy.

 


Price: The New Consumer Hot Button

While digital satisfaction is one concern, price sensitivity has become a decisive hot button for today’s customers. Inflation-driven price hikes across restaurants, grocery stores, and c-stores are pushing consumers to rethink where and how they purchase food. Recent data reveals:

·         70% of consumers believe restaurant prices have outpaced the quality and experience offered (Foodservice Solutions®, 2024).

·         Grocery retailers are increasingly capitalizing on this dissatisfaction—Ready-2-Eat and Heat-N-Eat fresh food offerings have seen double-digit growth year-over-year.

At every price point, value is the key—whether a convenient meal, bundle deal, or exclusive savings through digital loyalty programs. For restaurants, the question is: Are you communicating value while ensuring customers feel happy and satisfied?

 


Branding for Happy Customers = Success

A brand’s ability to deliver Happy Customers is the linchpin of long-term success. Whether dine-in or digital, customers expect consistency, value, and relevance at every touchpoint.

The team at Foodservice Solutions® recommends focusing on:

1.       Elevated Customer Service: Ensure satisfaction through accurate, seamless experiences that eliminate friction in the ordering process.

2.       Transparent Pricing & Value Deals: Bundle deals that offer mix-and-match components empower choice while reinforcing affordability and convenience.

3.       Digital Refinement: Optimize app performance, improve delivery systems, and test to-go packaging solutions to guarantee satisfaction.

Consumer "happiness" drives brand loyalty and profitability. If your digital channels, price points, and in-store touchpoints aren't aligned with customer expectations, it’s time for a strategic refresh.

 


Is your brand still following outdated methods? Want to learn how Foodservice Solutions® Five P’s of Food Marketing can amplify meal differentiation and create a customer-friendly retail experience? Contact us now: Steve@FoodserviceSolutions.us.

Final Thought

As pricing remains top of mind and digital experiences evolve, there’s no substitute for happy customers. Brands that can close the gap between price, value, and convenience will lead the future of foodservice. Are your customers happy?

Follow the Grocerant Guru® for the latest on food industry trends. #Restaurants #Grocery #GrocerantGuru #FoodService #ConvenienceStores

Full article archive at: Grocerant.blogspot.com



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