Ways consumer behaviour will help your F&B business thrive
The COVID-19 pandemic turned the food and beverage industry inside-out overnight. There was a significant decrease in out-of-home consumption due to the global lockdown, which resulted in a huge collapse within the industry, and required substantial strategic planning in order to bring businesses back on their feet.
While some businesses managed to adapt to the nature of the pandemic, most weren’t able to and suffered huge losses. So, what was it that allowed those that did persevere to stay afloat?
It is safe to assume that the answer was that these owners had an expanse of knowledge in consumer behaviour.
With that being said, here are 3 reasons why understanding consumer behaviour can help your F&B business thrive – even during unprecedented times.
- Encourages new designs for relevant products and effective marketing campaigns
Studying consumer behaviour allows you to gain insight into the day-to-day problems, needs, and interests of your target market.
These aspects will assist you in anticipating and aligning your new menu or product ideas according to the expectations of the market and in time, will reduce the probability of failure for your products or marketing efforts.
In terms of designing relevant products, understanding consumer behaviour will help you identify the food trends and preferences of your customers. This could be a major game changer for your F&B business as you would essentially be putting out products you know, or at least can expect to, sell well.
On the other hand, with a deeper understanding of your customers, you can develop marketing strategies that resonate with your target audience. By utilising business analytics, you will be able to identify the channels, messaging and promotions that are most effective for engaging with your customer base. This can help you create marketing campaigns that are more impactful and efficient, resulting in increased sales and brand awareness.
- Improves customer experience
Continuously searching for ways to improve your customer’s experiences with your business should always be a priority in your work environment. After all, making a positive impression may lead to customer loyalty and more word-of-mouth promotion. By analysing feedback and complaints, you can identify areas for improvement and make changes to your operations or services to address these issues.
You may also be able to tailor your menus to meet your customers’ needs and preferences. Analysing the data gathered through a specific time period will reveal the more popular dishes and the ones that aren’t as frequently ordered. This particular insight may give you the room to engineer your menu in a way where it is attractive to your consumers while swapping out the underperforming menu items for new or improved ones. Implementing small changes like this can push your business to put out its very best for your patrons.
- Gives you a competitive advantage
Your restaurant can gain insight into your customers’ wants and needs by using your data analysis tools. This helps you pinpoint exactly what to keep consistent or what to improve in order to differentiate yourself from your competitors. It is incredibly important to have a unique selling point in your F&B business, especially within this fast-paced industry. Through understanding customer behaviour, you can assess the existing market, brainstorm innovative menu items and execute them in an enticing manner. This can ensure a loyal customer base that won’t opt for another restaurant over yours.
Smart Ways to Boost Your Revenue with Data Analytics
It is imperative that a business knows how to leverage its data properly as market sizes are increasing by the day, with younger businesses stepping foot into many industries. Consumers nowadays have an expectation for companies to be more intuitive to their needs, and these do not stem from simple guesswork. If you want to stay ahead of your competitors, you will need to learn how to properly collect, analyse, and use your data, with the help of revenue analytics.
Luckily, there are many powerful sales insight tools and inventory monitoring systems that SYCARDA Malaysia can provide you with to better understand your customers, help you make better business decisions, and boost your revenue and profit margins.
Here are some ways you can boost your revenue by leveraging your data analytics software.
- Targeting ideal leads
Data analytics software can help your marketing or sales team pinpoint which customer segments are most likely to buy your products in a more efficient and accurate manner. You can gain insights into the behaviour and characteristics of your ideal consumer group, allowing you to create more targeted and effective marketing campaigns. This, in turn, can lead to increased engagement, conversions, and ultimately, revenue. The insights generated from these sales insight tools allow your team to focus their efforts on your most promising leads, therefore maximising your chances of success.
- Optimising your production process
It is a common goal for businesses to avoid disruptions to their production process such as overstocking or delays, as they can lead to dissatisfied customers and smaller profit margins. With the help of revenue analytics and software like SYCARDA Malaysia, you can create an optimised inventory monitoring system and determine a sufficient amount of stock to order, based on an accurate sales forecast. You can also improve your supply chain management by analysing the supply chain data, and identifying the inefficiencies while simultaneously optimising your procurements.
- Pricing your products and services
Figuring out a price point for your products isn’t easy. Aiming too high can make your target market lose interest and opt for cheaper alternatives, but aiming too low would mean lower profit margins. However, with data analytics, you can quickly assess where your potential customer stands by tracking data such as the quantity of items bought in a single receipt, the number of traffic and the frequency of purchases. With these fragments of information, you can size up your competition and come up with numbers that satisfy both your business goals and your customer base.
- Identifying niches
Identifying niches by analysing your data can help you focus your marketing efforts on underserved markets that have a high potential for growth. Ultimately this can drive revenue as you would be able to locate segments of the market that have unique needs or preferences that are not being met by existing products or services. This can help you develop a unique selling point that caters to these specific niches, and capture a larger share of the market.
If you are interested in boosting your revenue and experiencing these powerful benefits for yourself, sign up for a free SYCARDA demo and get in touch with our team.
FAQ
How does data analytics differ from statistics?
Statistics is predominantly focused on making inferences about a population based on a sample of data, while data analytics prioritises extracting insights and knowledge from data to inform decisions. From another standpoint, statistics deals primarily with structured data, while data analytics can deal with a wider variety of data types, including unstructured data. Data analytics also employs a range of more advanced techniques like clustering and neural networks, beyond the methods used in statistics.
How does data analytics help businesses?
Data analytics helps businesses by providing insights that can inform decision-making and improve performance. By analysing large chunks of data, companies can identify trends, patterns, and relationships that might not have been apparent otherwise. This can warrant a chance for businesses to optimise their operations, improve customer engagements, and identify new opportunities for growth. Ultimately, its number one goal is to give businesses a competitive edge by enabling them to make data-driven decisions that can lead to enhanced performance and increased profitability.
