Pareto's Law…More of "the 80-20 Rule"

In the previous post, we talked about using a database of your customers, so you can segregate out the top 20% who bring in 80% of your bottom line profits.

Now you will have a prioritized list of just WHO your best customers are by purchases, frequency of visit, etc.  If you analyze this data, you will soon see that a smaller proportion of your guests, account for a huge amount of your bottom line profit.  These are the folks who visit more frequently, order higher profit menu items, bring more colleagues and relatives with them; those who spread more positive "word of mouth" about your establishment. Compared to others, these particular customers are the gold in your own back yard.  You need to find out who they are and track their activity in your restaurant.

These are the guests you want to constantly reach, inform and motivate to return over and over again; as well as bring more of their like-minded friends along with them.  Remember that the number of guests in a visiting party and the ability to increase the size of the party from a single or deuce to a four-top; and the frequency with which they visit you, is one of only 5-6 ways you can increase your sales…and profits. (Refer to the list of ways you can use to do this, in the post on June 5th).

What do you think?  Care to share your 2 cents?  I'd appreciate your feedback and comments below.