20 Apr 2020

5 Tips To Increase Average Order Value with a Customer Loyalty Program

By: Melissa Canellis

Analytics

Average order value has always been an important metric for restaurants to track as it tells you how well you’re maximizing your sales. For most restaurants unfortunately, the current environment has caused a significant decline to sales. So what does this mean for AOV?

 According to the recent Punchh + Hathway Weekly Pulse Trend Report, AOV also dropped the initial two weeks at the start of the Coronavirus pandemic in the U.S. However, weekly AOV has since been rising 2-3% week-over-week compared to the first half of March. Brands have been pivoting their operations to tackle customers’ current concerns and to keep pace with the new environment for conducting restaurant business.

 Marketers should be looking at ways to increase AOV by addressing the new circumstances of individuals’ and families’ daily lives. Here are the 5 top tactics to help you get on the upward trend of increasing AOV:

Situation #1 People have more time to cook
Solution: Create Take-n-Make Meal Kits

Most activities outside the home have been eliminated, giving people more time to prepare meals. Restaurants should consider pivoting their operations to offer meal kits. Restaurants can create “take and bake meals” to meet customers’ needs for home-cooked food. Include a card that tells customers how to prepare, serve, reheat and store the food. Plus, don’t forget to ask for their next order.

Situation #2 Families are eating together more
Solution: Offer Family Bundles

Instead of relying on customers to choose individual entrees a la carte for their families, restaurants can prepare and promote family bundles. All meals can be made to feed whole families for one or two dinners such as a sheet of lasagna that’s easily reheatable.

Restaurants, particularly those that offer international cuisine, can help families who crave something particular and need an easy approach for meals.

Situation #3 People are anxious and confused
Solution: Limit Menu Offerings

Many people are feeling overwhelmed during this current situation and having too many menu choices can add to their stress. Limit the number of menu items available. Choose items that have good margins and that help guide and simplify the ordering process for customers.

Situation #4 Everyone needs the basics
Solution: Add a Pop-up Grocery 

Serve your community by leveraging existing supply chains, food-service relationships and technology to provide a pop-up grocery store or bodega with shelf-stable, unhandled, ready to eat foods. Items related or unrelated to your menu, including everything from bread, canned tomatoes, toilet paper, etc. have the potential to increase your AOV.

Situation #5 People are concerned about health & safety
Solution: Promote Contactless Operations

Take measures to create and promote a more contactless environment such as highlighting your mobile app for contactless ordering. Also if you’ve invested in contactless payment, contactless delivery, and contactless pick-up these services will incentivize customers to purchase more with you. The demand for a contactless environment is a trend expected to continue even after the pandemic. Restaurants need to make this shift to survive now, but also to be positioned for future success.

 Learn more best practices for marketers, by visiting our Resource Center.