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Leveraging The Internet to Bring More Guests On Board Laura Healy February 1, 2008

Leveraging The Internet to Bring More Guests On Board Laura Healy February 1, 2008. Introduction. The OpenTable System. Online Reservations. Real-Time Connection. A powerful touch-screen system placed conveniently at the restaurant’s host stand.

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Leveraging The Internet to Bring More Guests On Board Laura Healy February 1, 2008

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  1. Leveraging The Internet to Bring More Guests On BoardLaura HealyFebruary 1, 2008

  2. Introduction The OpenTable System Online Reservations Real-Time Connection A powerful touch-screen system placed conveniently at the restaurant’s host stand A rapidly growing online reservation network of more than 8,000 dining outlets that has seated more than 50 million diners worldwide

  3. Company History • Founded in 1998 in San Francisco, CA • 1999: First Internet reservation is made and seated • 2000: AOL partners with OpenTable.com • 2000: 1,000 restaurants sign up with service • 2002: 1 millionth guest is seated via online booking • 2005: 5,000 restaurants sign up with service • 2007: 2 million guests seated each month

  4. Agenda • The Internet landscape and how it affects your operations • Acquiring new guests through the Internet • Leveraging the Internet & your customer database to build repeat business • Exploring real methods to boost traffic from the web • Q&A

  5. Internet Use is Now Widespread… E-commerce has extended from retail to restaurants Source: Harris Poll – Internet Use & Trends, 1995-2006

  6. …And Plays a Growing Role in People’s “Where-to-Dine” Decisions 19992006 19992006 19992006 Source: National Restaurant Association 2007 Industry Forecast

  7. The Internet is Changing Dining Habits Prospective diners now say the web has changed how they decide on a restaurant: Source: 2007 OpenTable Diner Survey

  8. Decisions Are Made Online 24/7 Distribution of Reservations Booked by Time of Day 30% of onlinereservations are booked between 10PM and 10AM OpenTable reservation data, October 2006

  9. The Internet Booking Trend Has Exploded More than 2 Million people are seated every month via web reservations Monthly Covers Seated from Internet Reservations Source: OpenTable, Inc.

  10. Key Questions: • How can the Internet help me gain customers? • How can OpenTable help me provide better service & drive repeat visits? • What’s are some real-life examples of website best-practices?

  11. Leverage the Internet to Acquire New GuestsIdentify where your target audience gathers online and provide the means to “close the sale.”

  12. Before Marketing to the Online Public, Roll Out Your Internet “Welcome Mat” YOUR website is the most effective online tool you have

  13. Your Site Is a Branding Tool

  14. Your Website Can Generate Revenue via Multiple Channels 1. Generate Bookings 2. Sell Banquets 3. Sell Gift Cards 4. Sell Special Events

  15. Now, Expand Your Restaurant’s Visibility Online • Directory & Content Websites (capture users right when they’re looking to dine out) • Local newspaper websites • Review sites – AOL Cityguide, Citysearch.com, Gayot.com • Convention & visitor bureaus, tourism sites ALL LINK TO OPENTABLE.COM • Online Reservation Sites: OpenTable.com! • Search Engines • Paid search • Concierges

  16. Directory & Content Websites Many offer free basic listings in addition to paid, “premium” listings

  17. Online Reservations Transactional destinations where diners can make immediate decisions

  18. Paid Search Example Web visits can often be purchased for pennies per click

  19. Always Provide a Means to “Close the Sale” Enabling reservations online via real-time web bookings or simply by email captures guests before they can move on to another site

  20. II. Delight Your Guests & Keep Them Coming BackActively collect guest data to deliver a personalized experience. Earn their loyalty through follow-up marketing.

  21. Guest Retention: The 80/20 Rule • Acquiring a new customer is typically 3-5 TIMES more expensive than bringing a repeat customer back. • 80% of your business will come from 20% of your customers • Why? • Typically 20% of guests fall into the “Loyal/Regular” category • Loyalty = More Visits = More $$$ • Increasing your base of “Regulars” is well worth the effort! • Database Marketing Institute

  22. Use OpenTable to Collect & Manage Guest Info Online guest requests, reservations, loyalty transactions and email can automate the data collection process • Collect & store guest histories and preferences • Identify & track VIP’s • Personalize service before or during the visit • Market to guests via targeted email (or snail mail) campaigns The Old Way: OpenTable Database Host Manager Waitstaff Back of the House Host

  23. Email Can Convert 1st-time Guests to Regulars • Use dynamic email promotions to market economically & effectively to your guests • Use guest data to personalize your messages • Acknowledge anniversaries, birthdays, etc. • “Thank You” notes for recent visits • Reminders & special offers for dormant guests or AWOL regulars • Survey or feedback requests for recent visits • Targeted messaging example: Wine dinners to $$ wine-lovers • Interface with 3rd party loyalty programs like Fishbowl

  24. Elements of an Effective Internet Strategy • Guest Acquisition: Online marketing • Visitor Conversion: Real-time transactions & feedback • Service Optimization:Personalized service using data collected • Guest Retention: Economical, data-driven marketing

  25. III. OpenTable WalkthroughHow we do it all from the web to your guest database

  26. IV. Best Practices in Online Reservations A Restaurant site without online reservations fails to “ask for the sale” …and loses business every day!

  27. Quiz A restaurant website without a reservation link is like: • A. A phone book listing without a phone number • B. A marketing email without a call-to-action • C. A sales meeting without a contract • D. All of the above 

  28. An Effective Restaurant Website… Website Visitor Reserved Guest • Communicates your brand quickly • Provides important guest information • Is easy to navigate • Converts visitors to guests

  29. Myth:“I get those customers anyway.” Reality: Without online reservations, some prospective guests will choose another restaurant Fact: • 30% of resos are booked after hours • 40% of callers, when put on hold or sent to voicemail, choose another restaurant

  30. Callers Website Visitors If only 1 of 100 guests seated through an online link represents incremental business, the cover fees pay for themselves.

  31. Myth:“I can provide better service over the phone.” Reality: Online reservations accommodates people’s preference for doing business online. Fact: 70% of diners prefer online reservations

  32. Myth:“Our email form provides online reservations.” Reality: OpenTable is far more effective than email forms Fact: Email forms capture online requests – not real-time reservations

  33. Case Study: Donovan’s Steakhouse Restaurant Reduces Costs & Improves Service with Online Reservations

  34. Before: Reservation Request Form • Visitors completed an online form requesting reservations • Those wishing to dine within 3 days were instructed to call • Requests submitted after hours or on Sunday were responded to next business day “I didn’t like the request form, because I was afraid we’d lose guests.” Barbara, VIP Host, Donovan’s

  35. After: Confirmed Online Reservations • Guests secure confirmed reservations online, 24/7 • Staff saves 1-2 minutes for each reservation booked online • Staff spends extra time personalizing the dining experience for new guests “Now I swear by online reservations. I feel so silly that I was reluctant.” Barbara, VIP Host, Donovan’s

  36. But all online reservation linksare not equally effective…

  37. Tips for Adding Online Reservations Update restaurant’s phone message to direct callers to the website. • Make reservations prominent on the home page • Put reservation links wherever phone number appears • Add “Reservations” to site navigation bar • Do not hyperlink the OpenTable logo • For text links, use “make a reservation” or “reserve now”

  38. Case Study: Morton’s The Steakhouse Restaurant Group Boosts Results by Improving Reservation Integration

  39. Before: Home Page Lacked Call to Action

  40. After: 33% Increase in Online Reservations

  41. Q&A

  42. Thank You Presenter Contact Information: Laura Healy Account Executive, OpenTable, Inc. lhealy@opentable.com 773.719.6727 www.SeeOpenTable.com

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