Last week we touched on performance tracking for food precincts to ensure they are achieving their maximum potential and we mentioned the idea of customer strike rate. Customer strike rate is the frequency in which your customers use a component of your food precinct and is a useful figure to know to stay on track or inform change in your precinct. It is also a analytical figure that when combined with the average spend per customer, can determine important financials and inform asset value.
Ensuring that your precinct is set up for customers to utilise it to it’s maximum potential is the most important part of achieving the best customer strike. You want them using all aspects of the precinct as well as returning time and time again. Whether your precinct is part of a transport hub, retail centre, arts centre or business park, a good strike rate remains a key part of a highly successful and sustainable food offer as well as overall development with food and hospitality being a major drawcard and anchor for centres and spaces around the world. We’ve put together our quick checklist for what it takes to get your customers using all parts of the precinct, time and time again.
Customer Strike Rate Checklist
1. An ideal mix of concepts that will ensure appeal to identified user groups
By correctly applying a strategic mix of concepts, you guarantee that each customer type that visits your centre will have the opportunity to purchase something within the food and beverage offer. Some people go to precincts with intentions of only having coffee and cake, others are there to sit and experience a high-end meal. It’s important to consider all the dining types to ensure you account for each one in the mix. Neglecting one group means limiting your strike rate which is enough to flatten returns and stump the success of the precinct as well as the development it’s in.
2. Ensuring diversity of offers for varying needs, price points and day parts
As with the comment above, it is also important that all needs are met for each customer, particularly those who use the precincts most frequently. Price point is particularly important as striking the right balance between elevated experience and affordability is the key to getting the customer to come back time and time again as well as draw in new customers. Same goes for servicing different day parts. The lunch customer is entirely different to the afternoon customer in what they want to eat and drink so it’s important the mix is diverse enough to fulfil each customer type’s needs.
3. Introducing new concepts that are not ‘more of the same’
Everyone is a ‘foodie’ these days and with social media offering quick access to what’s hot and new, it is in a precinct’s best interest to include some of the newest and most exciting offers. By doing so, you are drawing in customer’s and potentially acquiring new customers who would not have usually visited the centre but are now enticed by the exciting new mix. Whilst old favourites should not be neglected, first principles state that your centre’s F&B precinct should be made up of 70% of what customers know they want and 30% of new offers that diversify the mix.
4. Provide purchase opportunities at critical touch points throughout the centre
Purchasing has become more simple than ever. With a swipe of a finger across a phone, people are now able to buy things with little to no thought on their part. It’s important for a food precinct to harness this and implement purchase opportunities throughout a centre to provoke easy spending that is both simple and streamlined. In the moment, people are highly likely to purchase if an opportunity that is exciting and appealing is presented to them so make it easy for them.
5. Well designed and visually appealing dining spaces that are enticing and inviting
There is no doubt that ambiance and the surroundings play a key role in how desirable a customer perceives a precinct. The standards or today’s customer are much higher than they have been previously and food has moved away from being functional to now being experiential. The dining space is integral to the experience. Invest in design that is enticing and inviting and people will return again and again to relive their experience in the space. See our article on some of Melbourne's best designed hospitality hot spots.
6. Evocative visual merchandising techniques that increase appeal and potential utilisation
We’ve all felt the impact of great visual merchandising. Sight is one of the first senses that gets stimulated when a customer looks at food so it needs to visually convey the message of great taste, great value and something people want more of. Invest in impressive visual merchandising to promote the offer within your precinct. Read "Keep it Physical: Store Design and In-Store Merchandising"
Are you missing one of these key components? Get in contact with our team of experienced food consultants to see where the opportunities lie in your centre to get that customer strike rate up to optimal levels.