Understanding Guests’ Purchasing Behavior
On Monday we shared an infographic provided by Open Forum detailing how to set pricing without turning away guests. The infographic highlights customer segmentation as a great determinant when setting the right prices. However without the right tools that’s easier said than done. MarketingVitals.com has two great features to help you understand customer purchasing behavior, when planning a seasonal promotions or price increase.
Restaurant promotions targeting the per person average or check average don’t consider differences in guests’ purchasing behavior. This “one-size fits all” approach misrepresents how guests make purchases in the restaurant industry. With our Segmented Check/Guest/Cover Average tools, guest spending is dissected and the values are distributed into groupings. Helping you get an in-depth look on who to target and how to price when running promotions.
Making price increases without doing the proper research can severely hurt your sales. In an article posted on NRN, author Jonathan Marek, provides facts that are often overlooked when making price increases.
- You can’t understand the impact of changing prices without a test versus control analysis.
- Price elasticity varies by store — a lot.
- Pricing analysis should not be outsourced.
With our Price Elasticity we can show you how a price increase will affect guests spending over a concept, region/district or just one store. Our tool masters your guests’ spending habits and determines how that affects your menu mix and gives you the power to do your analysis in-house instead of outsourcing it and thereby exposing your data to outsiders.
If you’d like to learn more about our Segmented and Price Elasticity features, request a demo today!