Customer's Emotions Linked to Positive Restaurant Profits
Comparing the customer engagement scores of 1,200 recent diners with the financial performance of publicly traded restaurant chains revealed a strong correlation. Restaurant chains with high customer-engagement scores far outperformed low-scoring counterparts, including an average gross margin of 29 percent compared to -12 percent, and earnings per share growth of 75 percent to -50 percent for lower-performing chains.
The study also considered what chains can do to build a more engaged customer base. "We found operators need to do a few things well to increase customer engagement," notes Kate Feather, executive vice president of PeopleMetrics. "They need to hire and retain employees who make the dining experience fun. But most important, restaurants who can quickly and effectively resolve customer concerns are the clear winners."