Direct to consumer, also known as DTC or D2C, sales are common in the restaurant industry. You sell your food to consumers, they buy it, and everyone is happy. But, owning your own marketing and ordering systems has changed a lot in recent years.
It's not uncommon for restaurants to be on GrubHub or DoorDash, and while these are great forms of marketing and revenue generation, you're working with a middleman who will demand some of your profits.
So, what can you do to boost DTC sales for your restaurant, and why does DTC benefit eateries in the first place?
What are the Benefits of DTC for Restaurants?
If you have strong sales and don't want to "shake things up," you may be concerned that using D2C strategies may negatively impact your business. But when you opt to go D2C, you benefit in multiple ways:
- You can collect all of the marketing data on your own servers. Through feedback, sales, and visitor metrics, you'll have insight into what your customers prefer and do not prefer in a way that is impossible without direct-to-consumer sales. You can use this big data to make smart, data-backed decisions about your marketing.
- Your sales net you higher profit margins because you don't have to pay commissions or fees to a third party.
- Flexibility to change to market conditions. Often, your marketing or third-party teams are slow to adapt to new market trends, impacting your short-term sales in the process.
- You control the customer experience. If you use a third party to make sales, your brand relies on the experience they provide. Often, when the experience is poor, it will negatively impact your sales and image.
Restaurants that sell DTC without a third party involved are in full control of marketing, sales and data. If you have a dedicated marketing team and don't need to rely on third-party services, you'll generate greater profits in the process.
6 Restaurant Marketing Ideas to Boost DTC Sales
If you want to increase direct to consumer sales, you can do so by utilizing the marketing ideas below:
1. Create a Personalized Customer Experience
Direct to consumer marketing is strengthened with a personalized customer experience. If you want to increase repeat customers and satisfaction, tailor the experience to the consumer's preference.
It's that easy.
How can you do this? Recommend products or menu items based on past ordering habits. Determine when the customer may run out of a popular item and remind them before they do. If possible, offer coupons and discounts to encourage customers to drum up business when sales are slow.
2. Leverage Online Platforms for Direct Ordering
One of the simplest ways to boost DTC sales is to offer online ordering directly from your restaurant's website. To deliver a positive customer experience and drive sales, ensure your site is speedy and mobile-friendly.
There are several solutions that make it easy to implement online ordering into your website's functionality. Choose one that fits your budget and needs.
3. Offer On-Demand Delivery
Today's consumers expect restaurants to offer on-demand delivery. You can offer this service in-house, or you can partner with a local on-demand delivery service to handle the logistics for you.
Handling deliveries in-house may sound like a complicated and expensive venture, but you'll save on fees in the long-run and will have control over the customer experience.
4. Implement Social Media Ordering (SMO)
One of the most effective DTC restaurant marketing strategies is social media ordering or SMO. Thanks to SMO, restaurants can leverage social media to not only engage with customers directly but sell to them directly, too.
The most popular social platforms are adopting SMO, including Instagram, Facebook and WhatsApp. They provide users with a user-friendly and intuitive way to place orders online without even leaving the social network.
You can even use SMO to promote new menu items, share promotional deals, and build customer loyalty - all while boosting direct sales.
5. Create a Loyalty Program
Loyalty programs boost direct-to-consumer sales, build brand awareness, and expand your loyal customer base. They give consumers a reason to return to your restaurant time and time again.
The concept is simple:
- Each time a customer dines at your restaurant, they earn a certain number of reward points based on the dollar amount they spent.
- Those points can be exchanged for rewards, typically free food items.
If you offer online ordering through your own custom app or website, you can easily integrate your loyalty program into it and allow customers to redeem their points directly from your app or site.
Offering special promotional periods - like 2x the rewards points for certain items or on certain days of the week - will entice customers to stop in and make a purchase.
Creating an effective loyalty program can be challenging. Here are some tips:
- Define your goals. What do you want to achieve with your program? Do you want to boost overall sales, average spending, frequency of visits or something else?
- Select a reward structure. How do you want customers to earn rewards? Do you want to offer a point-based system (the most popular option), traditional punch cards or a tiered reward system?
- Create a marketing strategy. How will you promote your program? Social media is a great place to start because you can reach your audience directly. You can also promote your program in-house (e.g., indoor signage) and on your website.
Make sure that you're using data analytics to track your program's success and make changes as needed.
6. Invest in Email Marketing
Email marketing is one of the most powerful restaurant marketing tools available to restaurant owners. With the right strategy, email marketing can help you:
- Engage with your customers on a deeper and more personalized level
- Keep your customers informed about your latest promotions
- Boost sales and foot traffic
To create engaging and effective email campaigns, make sure that you're:
- Personalizing your messages. Go beyond just including the customer's name in your message. Personalize the content based on their past preferences and interactions with your restaurant.
- Adding clear and attractive calls-to-action (CTAs) that encourage subscribers to visit your restaurant.
Don't forget to track the progress of your campaigns to ensure your efforts are paying off.
Final Thoughts
Many restaurants are making the shift toward DTC for a variety of reasons. Along with being more cost-effective, DTC strategies allow restaurants to build a loyal customer base and stay competitive without relying on third parties.