If you are running a restaurant store, as a store owner or store manager, what data should you pay attention to?
This series of articles lists eleven types of data that store managers must pay attention to, one to five are at the result level, and six to eleven are at the analysis level. This article will analyze the last two parts of the analysis level data.
The three indicators that are most closely related to business conditions in private domain operations
(10) Look at the member
content: The three indicators that are most closely related to business conditions in private domain operations
and the public domain are simply the difference between the public domain belongs to others. If they want to, they will give it to you, and if they don’t want to give it to you, they won’t give it to you. private domain is your own, so you can keep the money in your pocket and feel at ease.
Membership is the most important "private domain traffic" of catering stores. Members are the real "customers" of the store. With a large number of members in hand, there is no need to worry about the store having no repeat customers. There are a lot of data analyzed by members, what should we look at? Here we will only introduce the three member indicators that are most closely related to the business status of : member conversion rate, member purchase rate, and member repurchase rate. After a large amount of data verification, stores with excellent business conditions in these three indicators have mostly performed well.
"Member conversion rate" refers to: among the overall customers, how many customers have changed from non-members to member , which reflects the store's ability to develop new members, which means that the store can accumulate many repeat customers.
Member conversion rate = number of new members ÷ number of visitors except old members
Number of visitors except old members = number of visitors (TC) - number of paying members + number of new members
For example: there are 160 visitors on the day of the store, of which 60 members paid, and 15 new members, then the member conversion rate = 15÷ (160-60+15) = 13%.
member conversion rate industry standard is about 10% . If it is lower than this standard, it means that the growth of new members is weak and the basis for repurchasing stores in the future is relatively weak.
"Member paying rate" refers to: among all bills, how many members pay the bill are , which reflects the proportion of all customers in the store. The higher the proportion, the more regular customers there are, the stronger the marketing response rate.
Member purchase rate = total number of member purchase orders ÷ number of bills
For example: the store paid 180 orders on the same day, of which 70 orders were paid by members, and then the member purchase rate = 70÷180=39%.
member purchase rate industry standard is about 30% . If it is lower than this standard, it means that the store has not accumulated enough regular customers and the potential for repurchasing in the future is poor.
"Member repurchase rate" refers to: among all bills, how many are the paid by old members, which directly reflects the proportion of repeat customers in the store.
Member repurchase rate = number of purchases by old members ÷ number of bills
0 Old members ís number of purchases by old members = total number of purchases by members - number of purchases by new members
For example: the store paid 180 transactions on the same day, of which 70 transactions were paid by members, of which 15 transactions were paid by new members, then the repurchase rate = 70÷ (180-15) = 42%.
The industry standard for member repurchase rate is about 40% . If it is lower than this standard, it means that there are not enough repeat customers in the store and the store cannot retain people.
member conversion rate is not high, so you should consider increasing member conversion channels
Although the above three indicators are all member aspects, they are directly related to store turnover and table turnover rate. Let’s summarize the industry average standard:
Member conversion rate: about 15%, banquet restaurant-5%, hot pot barbecue home-cooked dishes + 10%
Member purchase rate: about 30%, banquet restaurant- 5%, Hotpot Barbecue Home-Cooked Dish + 10%
Member Repurchase Rate: About 30%, Banquet Restaurant - 10%, Hotpot Barbecue Home-Cooked Dish + 10%
If the member conversion rate is not high, you should consider increasing member conversion channels . In addition to the payment process, all contact points with customers such as queuing, ordering, takeaway, e-commerce, and community should set up member conversion portals to increase the opportunity for member conversion.
If the member conversion rate is high, but the member purchase rate and repurchase rate cannot increase, it is possible that there are too many "sleeping members" , which may be due to brand aging or customer aesthetic fatigue. New product iteration and store renovation should be considered, and sleeping members should be activated through marketing methods.
If the member purchase rate is high, but the member repurchase rate is not high, it means that the member has not become a repeat customer . Members who have eaten once will not look back. They should look for reasons based on products and services and improve measures as soon as possible, otherwise they will easily fall into a vicious cycle.
The three most important indicators for high-value member operation
(11) Look at the stored value
Content: The three most important indicators for high-value member operation
All customers who have stored value are basically members, so in the usual analysis, the stored value analysis is confused with member analysis. In fact, the stored value must be a member, and the member does not have to save the value. Therefore, the stored value can be considered as a "more loyal" member.
The meaning of the store is not just about recovering working capital, but more importantly, it is about locking in customers' future consumption through the store. Therefore, the more customers who store value, the more secure the future customer flow of the store will be.
Like a member, there are three indicators for the analysis of stored value, which can be directly related to the store's operating conditions, namely: stored value conversion rate, stored value purchase rate, and stored value precipitation rate.
"Storage Value Conversion Rate" refers to: among the overall customers, how many customers have become loyal customers with stored value , which is directly related to the proportion of high-value customers in the store and the proportion of repeat customers in the store in the future.
value conversion rate = number of new value-added members ÷ number of visitors (TC)
"Stored value buying rate" refers to: among all bills, how many are that use stored value to pay for orders. The higher the proportion, the more high-value regular customers there are in the store, the stronger the member activity.
Storage value buy rate = Number of transactions used to pay for the order ÷ Number of bills
"Storage value precipitation rate" refers to: among all stored value amounts, how many stored value has not been used . The higher the proportion of this part, the more precipitation funds , but it also means that the worse the member activity and the lower the consumption frequency. stored value precipitation cannot be used entirely for liquid capital, and liquid capital can only use 5% to 8% of the stored value precipitation gold.
stored value precipitation rate = unconsumed stored value amount ÷ Total stored value
There are also some industry average standards in stored value, refer to it as follows:
stored value conversion rate: about 15%, banquet restaurant - 5%, hot pot barbecue home-cooked dishes + 5%
stored value purchase rate: about 25%, banquet Restaurant - 5%, Hotpot Barbecue Home-cooked Cuisine + 10%
Stored Value Sedimentation Rate: About 20%, Banquet Restaurant + 5%, Hotpot Barbecue Home-cooked Cuisine - 5%
Stored Value is an important part of member operation. When the member conversion rate and member purchase order rate meet the standards, the stored value conversion rate and stored value purchase order rate are 5% to 10% lower than the member conversion rate and member purchase order rate respectively, which is a relatively ideal situation.
If the member conversion rate and member purchase order rate meet the standards, and the stored value conversion rate and stored value purchase order rate do not meet the standards, it means that the member operation and development are OK, but the development of high-value members is insufficient and a virtuous cycle has not yet been formed.
So far, the main part of the series of articles "As a catering store operator, what data should you pay attention to" has been written, and I hope it will be helpful to all operators.
