Expert Insight
feeditback.com £50K REVENUE OPPORTUNITY FOR HOSPITALITY VENUES
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
8 March 2021
www.venue-insight.com
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.”
The Feed It Back methodology analysed 11,973 survey responses and spend-data from across 137 venues with a total spend of £239,214.98. Insight data was gathered from October and November 2020.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
