- If you have a restaurant on delivery platforms (Doordash, Uber Eats, Olo), you can use conversion rates to turn visitors into paying customers
- The best restaurants increase the conversion rate on third-party platforms and then continue attracting those customers to their first-party ecosystem
- Using dynamic pricing, along with leading indicators like click-through rates are effective ways to boost restaurant profits and encourage repeat customers.
The Digital Ordering Secret: The Importance of Conversion
Every restaurant is now part of an ecosystem where they operate like an ecommerce company. You might have around 20% of the people who visit your page on Uber Eats or DoorDash actually making a purchase.
If your goal is to convert them into first-party customers, how can you get the remaining 80% who don't make a purchase to actually make their first purchase? At the same time, you need to have a strategy in place for how you prepare your orders and communicate with customers to bring them into the first-party ecosystem.
We are witnessing restaurants adopting a dynamic pricing approach to attract customers using these third-party platforms, which are essentially becoming marketing tools. They are also implementing a separate dynamic pricing strategy for their first-party sales.
How to Increase Restaurant sales by using Conversion Rates
Another leading indicator that we've been really focused on is conversion rates. So, in response to my earlier comment on restaurants being ecommerce companies, now that you're on these third-party platforms, you have a conversion rate, correct?
A click-through rate. How many people are actually going and buying from your store when they look at it?
It's not everyone. It's a small fraction. So, how can you use pricing as a way to increase that and get more folks to order and more customers to come back? There are many indicators that are really important to look at.