Published: 2021-10-06 in Takeaway Genie by Lauren Deol
Success is nothing without a method to measure it.
You've put a lot of money into your online ordering system. That was an important investment because many people order items and food online, but how can you ensures that you're getting the most of it? Have you ever taken the time to measure your Return on Investment?
Investigating key metrics such as conversion rate, customer acquisition cost, average value per transaction, and ROI can provide your restaurant with valuable information about what's working and what's not.
Why Should You Monitor the Effectiveness of Your Online Ordering System?
Progress is nothing without the statistics to support it.
Measuring the success of your restaurant online ordering system and marketing metrics can tell you a lot about how you operate your restaurant and help you identify potential locations.
Here are a few advantages to having an analytics strategy for your restaurant.
Customer Acquisition Cost
The first stage in customer acquisition determines how much of your business comes from new customers. After evaluating your potential customers, you will decide which marketing network is ideal for establishing a connection.
Visitor Conversion Rate
All online ordering systems are designed to generate sales. Even so, assume your website or mobile application is not intended in a way that visitors are compelled to finish the order after that. In that situation, having an online ordering system is a waste of time. To calculate your conversion rate, divide the number of site visitors bought by the total number of visitors.
Customer Order Cycle Time
Also known as Order Fulfillment Cycle Time is the average amount of time it takes from when a customer orders until they receive it.
Customer order cycle time enables you to determine how efficient your restaurant is at preparing food and delivering customer orders. When your average order cycle time is short, it indicates that your company is responsive to the needs of its customers.
A longer cycle may indicate that you need to address other areas, such as invoicing times, cooking times, and delivery times, to address issues and reduce the amount of time between order and delivery.
Average Value per Transaction
Having a large number of purchases is great for profits. Even so, if all of your transactions are for low-value food products, your net income might suffer. Take note of the number of products your typical customer purchases, as well as the average value of their basket. If your finest items have low-profit margins, consider cost testing to see if you can raise the bottom line on food products that you know sell well. Another important way to increase average transaction value is to offer free delivery at a certain minimum basket value to encourage your customers to add even more items to their carts.
Fresh vs. Returning Traffic
The number of people that visit your site. How many of these visitors are first-time visitors versus regular visitors?
Assume you have a lot of new visitors. In that case, this is an indication that your branding and promotion strategy is reaching out to new people. If you have a lot of repeat buyers, it means you have a lot of loyal customers.
Return on Investment (ROI):
The world is going online! Restaurants that have difficulty adapting are left to fend for themselves. Use the Takeaway Genie online food ordering system for restaurants to enable online orders and boost your sales.