The Importance of Leveraging Promotions on Delivery Platforms
As previously mentioned in other articles, in the restaurant industry, embracing digital platforms has become essential for staying competitive.
While there are various delivery platforms available, optimising your restaurant's presence within them can significantly impact your success. That’s why we thought you would only benefit from exploring how investing in promotions on delivery platforms can elevate your restaurant's performance and maximise its potential.
Here's why:
👀 Increased Visibility
With an increasing number of consumers turning to delivery platforms to satisfy their cravings, it's crucial to ensure your restaurant stands out amidst the competition.
Delivery platforms have vast user bases and extensive reach, which means that if you invest in promotions, you can increase your visibility among potential customers who might not have otherwise known about your establishment. In other words, by strategically investing in promotions, you can enhance your restaurant's visibility and reach a broader audience, driving more orders and revenue.
Furthermore, according to recent data from Statista, the online food delivery market is projected to reach an astonishing $151.5 billion globally by 2025, underscoring the immense growth opportunities available to restaurants that capitalise on delivery platform promotions.
💡 Competitive Edge
The food delivery market is highly competitive, with numerous restaurants vying for customers' attention. Promotions help you differentiate your restaurant from your competitors and can attract customers who are looking for deals or discounts, while at the same time encourages repeat orders, giving your restaurant a competitive edge in the marketplace.
The most favoured promotion among food delivery platform users (50%) is receiving a discount on their order, with half of the users citing it as a compelling reason to place an order. Additionally, other popular promotions include waiving delivery fees, preferred by 45% of users, followed by multi-buy deals such as 2-for-1 offers, which appeal to 35% of users. Furthermore, meal deals that come with complimentary drinks or sides are also well-received, with 25% of users indicating their preference for such offers.
🫱🏻🫲 Customer Acquisition and Retention
Promotions are an effective way to acquire new customers and retain existing ones. Offering discounts or special deals encourages customers to try a restaurant's food, and if they have a positive experience, they may become repeat customers in the future, increasing customer retention and lifetime value.
Data from Harvard Business Review indicates that acquiring a new customer can be up to five times more expensive than retaining an existing one. That’s why leveraging promotions to attract new customers and incentivize repeat orders, restaurants can achieve a dual objective: expanding their customer base while fostering loyalty among existing patrons. Furthermore, promotions serve as a powerful tool for upselling and cross-selling, driving higher order values and maximising revenue potential.
👨🏻💻 Data Insights
Delivery platforms often provide valuable data insights to restaurant owners, including customer demographics, ordering patterns, and popular menu items. By investing in promotions, you can gain access to this data, which can be used to tailor future marketing strategies and improve overall business operations.
However, we also know how this can be a struggle for someone who doesn't have the time to carefully analyse the data and draw conclusions while managing dine-in, or for someone that is not data driven, or even if you actually need to log in on different platforms just to get data for each.
On the other hand, like Otter is a great solution as an integrator that makes it easier for owners to manage their delivery orders across multiple platforms - so, more on the optimisation of operations side -, pleez comes into the picture when it comes to aggregate data from different platforms and store locations, and optimising performance within delivery platforms.
SOME EXAMPLES of Data Insights in different elements
📍 Customer Demographics: Delivery platforms collect extensive data on customer demographics, including age, gender, location, and ordering habits. By analysing this demographic information, you can gain a deeper understanding of your target audience and tailor your promotions to resonate with specific demographic segments.
For example, if data analysis reveals a significant portion of orders coming from young professionals in urban areas, restaurants can design promotions catered to this demographic's preferences and lifestyle.
🍕 Ordering Patterns: Understanding ordering patterns is critical for optimising operational efficiency and meeting customer demand. Delivery platforms track ordering patterns, such as peak ordering times, popular cuisine choices, and average order value. Armed with this data, you can adjust staffing levels, inventory management, and menu offerings to accommodate fluctuations in demand effectively. Moreover, identifying trends in ordering patterns allows you to anticipate customer preferences and proactively adjust your promotional strategies to capitalise on emerging trends.
⭐️ Popular Menu Items: Delivery platforms provide insights into which menu items are the most popular among customers. By analysing data on top-selling items, you can optimise your restaurant’s menu offerings and promotional strategies to highlight crowd favourites and drive sales. For instance, if data analysis reveals that a particular dish consistently ranks as a bestseller, you can feature it prominently in your promotions to attract more customers and increase order volume.
💬 Feedback and Reviews: Delivery platforms often facilitate customer feedback and reviews, offering valuable insights into customer satisfaction levels and areas for improvement. By monitoring feedback and reviews, you can identify trends, address customer concerns, and enhance the overall dining experience. Additionally, positive reviews can serve as powerful social proof, bolstering the restaurant's reputation and attracting new customers. All in all, leveraging feedback data, you can refine your promotional messaging and offerings to better align with customer preferences and expectations.
In essence, investing in promotions on delivery platforms not only drives immediate sales but also unlocks a wealth of data insights that can inform future marketing strategies and operational decisions.
🥵 Adaptation to Changing Consumer Behaviour
Consumer behaviour is inherently dynamic, shaped by shifting trends, preferences, and socio-economic factors. It’s constantly evolving, with more people opting for the convenience of ordering food online.
In response, restaurants must remain agile and adaptive, continually refining their approach to meet changing consumer demands. Delivery platform promotions provide a flexible and scalable means of adaptation, enabling you to pivot your strategies in real-time based on emerging trends and market dynamics.
Whether it's capitalising on seasonal festivities, launching limited-time offers, or experimenting with innovative promotional formats, you can leverage promotions to stay ahead of the curve and maintain relevance in an ever-evolving landscape.
💸 Maximising Revenue Potential
Promotions can help you maximise your revenue potential by encouraging your customers to order more frequently or spend more per order. For example, offering a discount on a minimum order value may incentivise customers to add additional items to their cart to qualify for the discount.
Also, by using data provided by past promotions, you can tailor your promotions to align with consumer demands, driving higher conversion rates and overall profitability.
👂🏻 Building Brand Awareness
Promotions can also help build brand awareness and loyalty. By offering promotions on delivery platforms, you can expose your brand to a wider audience and encourage customers to engage with your restaurant both online and offline.
WHAT ARE YOU WAITING FOR?
Incorporating promotions on delivery platforms is not just about increasing sales; it's about maximising your restaurant's potential for success in the digital age. The strategic investment in delivery platform promotions represents a paradigm-shifting opportunity for you to unlock unprecedented growth and success.
"User penetration in the meal delivery segment (...) is expected to reach 33.33% in 2027. This means that 2.64 billion people will order meals online by 2027." - Otter
By leveraging these platforms effectively and optimising your promotions, you can boost your restaurant's performance, attract new customers, and cultivate lasting relationships that drive long-term growth and prosperity.