Delivering Mission Segmentation to Increase Profitability for a Restaurant Chain
A large restaurant chain in Great Britain has built a reputation as a leading brand in the mid-market casual dining sector.
The casual dining category is defined by a broad spread of customer types, a wide choice of competition and the widespread application of discounting and offers. Research by Deloitte in 2017 suggests that 38% of visits across the category involve some kind of “deal”, especially during the mid-week and lunchtime periods. They understand they’re in a vibrant, competitive category where customer understanding, appropriate pricing and excellent experiences are key to success.
Outra were approached to help this company understand diner behaviour. The objective was to gain insights into all customers, not just those for whom they had personal details in an email CRM programme. This way we could drive real insights at a mission level that could be used in promotional offers, communications, experience and pricing decisions.
To drive insights, Outra had to work from the broadest set of data so we started with a huge extract of 18 months of EPOS data. We chose to prove the approach across 6 restaurants prior to rolling out across all 140. The transaction level data included line level data across every bill giving us a highly granular view of both individual and ‘table’ level data.
Velocita, Outra’s analytical customer data platform, has been specifically designed to allow rapid ingestion, data manipulation and insight. The multiple files of data were ingested into our analysis platform and matched with our proprietary data spine allowing us to understand the outlet, the competition and its catchment.
Two key aspects characterised the success of this project. The first was the speed of data manipulation and ingestion and the second was how the mission-based segmentation uncovered previously unknown patterns of customer behaviour leading to very different levels of return.
Outra have been able to show how they can deliver insight and actions tailored to each of the 140 outlets driving differentiated communications and hyper-local activity. Resulting in a high level of customer engagement and satisfaction, in addition to being able to service their customers more cost effectively.