Feed It Back shows how restaurants could secure a boost of £50k in revenue per year by learning how to turn passive guests into promoters.
Hospitality venues that turn ‘passive’ guests [those with a Net Promoter Score – or NPS – of 7 or 8] to become ‘promoters’ [those with an NPS of 9 or 10] will increase spend per head as well as frequency of visits in the long term.
Feed It Back analysed data from 137 venues across multiple brands for two months to gather insight on how converting more passive guests can result in an uplift in both revenue and loyalty.
The data shows how visit frequency and brand advocacy go hand-in-hand. Results revealed that the majority of guests who visit venues weekly are promoters (87%) however, less frequent visitors are more likely to be passive. For example, of those who visit venues only once every 3 to 6 months, 20% are passive and 72% are promoters. In addition, promoters spend £2.73 per head more on average than passives.
According to the data, operators that can convert 200 passives each month to become promoters could unlock £50k a year in extra visits and increased spend.
Insight also showed how first-time visitors were harder to please but spent more money. For example, venues that received first time visitors saw fewer promoters than those with returning guests, but the price per head enabled them to reap a greater portion of revenue. 10% detractors [NPS of 6 or below]; 16% passive [NPS 7 or 8] and 74% promoters [NPS 9 or 10]. This highlights the importance of creating a positive first-impression.
Feed It Back CEO Carlo Platia said: “Converting passive customers is the key to increased visits in hospitality venues. As well as coming back more often, promoters will spend more with you on each visit. Venue owners need to look for ways to make that conversion and one way of doing this is to understand what passives are talking about.”
Feed It Back analysed guest comments to discover that the word ‘time’ was used most frequently by passives, followed by the words: table; menu; order and meal. Insight showed that by improving the guest journey with regards to these touchpoints would help unlock the extra revenue for venues that implemented plans to ramp up guest experience along these key areas.
Platia added: “Naturally, once Feed it Back has identified the reason for each venue or brand’s passive scores (e.g. time), the company can drill down to identify specifically which part of the guest journey this applies to, so that the improvements can be made precisely in the right place and revenue lifted to its full potential.”
