COVID-19. Coronavirus. It has many names, but one undesirable core theme: it has revolutionized the way we live. On the one hand, businesses are now forced to pivot their operational models, identify new ways to reach (and retain) their customers, and rapidly learn, implement and adapt to new practices to meet these new-age demands.
Customers, on the other hand, living the ‘new normal’, are even more conscious about everyday decisions and choices, making it tougher for businesses to attract (and again, retain) their customers.
All things considered, this begs many questions about the future of the brand-and-customer relationship and the path we will have to navigate to see through these uncertain times ahead of us.
Take, for example, the food and beverage service industry at large. Conventional and established mom-and-pop stores, coffee shops, restaurants, eateries and cafés are faced with the inevitable choice of “brick-and-mortar operations vs. digital operations” at the risk of losing customer footfall, falling profit margins, or worse, shutting down completely!
A recent article by SevenRooms in May revealed the impact COVID-19 has had on restaurants and hospitality businesses, and forecasts the industry losses expected:
- The restaurant industry expects to lose up to $240 billion by the end of 2020.
- Two out of three restaurant employees have lost their jobs [since the beginning of 2020].
- Restaurants, on average, laid off 91% of their hourly workforce and 70% of salaried employees due to COVID-19 related closures.
- The biggest challenges restaurant owners believe they are facing in reopening are: slow return of customers (41%), cash to pay vendors (35%), rehiring staff (16%), retraining staff (3%), health Inspections (2%)
With uncertainty on the longevity of restaurants, new ideas and solutions are being developed to meet the pace of change, and this is where we focus our article:
Rethinking omnichannel strategies with chatbots.
Restaurant marketing strategies are fast-changing from multi-channel to omnichannel, efforts are being focussed on digital touchpoints almost exclusively such as social media, mobile apps, and websites, and digital transformation requirements bring with it an emphasis to connect and sustain the relationship they have with customers.
Chatbots, though not new to the market, have taken the centre stage in omnichannel marketing strategies and are seen as the ‘pivotal model answer’ for many restaurants to maintain operations, continue dialogue with new and existing customers, and offer customers a unified, seamless experience.
Let’s take a closer look at some of the ways chatbots are overcoming the barriers of future marketing and communications programs in the restaurant industry, and how these can be applied to just about any business:
1. Dine-in, Delivery or Pickup?
The meteoric rise in healthy and safety measures have left us questioning whether we risk visiting our favorite restaurant for that oh-so-delicious burger and great customer service we’ve come to expect from our adored waiter versus ordering for delivery or pickup.
Bots allow a dialogue to take place between the brand and customer by not only providing access to information more quickly but complement existing digital channels at the source [think the power of omnichannel here for a second].
In a 2018 State of Chatbots Report, it highlighted the various need states for predicted usages of chatbots by respondents, all of which further substantiates the necessity of bots in 2020 and beyond.
Like many other SMEs, restaurants are now offering customers the option to reserve a table and dine-in by scanning QR codes to viewing menus and ordering ahead for delivery or pick-up via chatbots at the core of their marketing strategies, and even if restaurants have reduced staff capacities, customers enjoy peace of mind by being able to call or notify their waiter via their chatbot for improved operational proficiencies and staffing efficiencies.
- Fish, Chicken or Beef?
Not only do bots enable a new layer of communication, be it standalone or complementary to existing digital channels, but distribution of content and content discovery is available at the core of omnichannel touchpoints, with research methods and decision-making much quicker and more pleasant.
Like social media, restaurants offering online menus can extend the bots behaviour to include personalised customer experiences through special promotions, daily offers, discounts and promotional ads relevant to the brand and customer, vying for dwell time and purchase behaviour. In addition, customers can also share feedback either in-venue or via the chatbot remotely.
According to Aalavi, over 50% of customers expect a business to be open 24/7. To meet this demand, 80% of businesses are expected to have some sort of chatbot automation by 2020 which can save up to 30% in customer support costs as well.
So if you prefer pasta, sushi or flambé, gastronomic experiences are just a finger touch away via a restaurant’s chatbot presence.
- Seamless operations, or is it?
Contrary to popular belief, implementation of a chatbot into existing operations is neither very costly or necessarily complex. The only conceivable barrier is finding a suitable technology solution that meets the requirements of both customer and restaurant alike.
The host of benefits chatbots offer include data collection, artificial intelligence to articulate incoming requests and offer relevant information, direct messaging, various payment methods, alerts, reminders and integrations into some if not all business systems.
In a study by Tidio, they found that the average number of messages sent by customers in different industries outways the number of messages customer service agents respond to per session. In other words, customer service agents respond to fewer messages (3.9) than there are waiting in a line (3.5) by customers, resulting in overheads and unsatisfactory experiences.
By incorporating chatbots into omnichannel strategies, restaurants [and other businesses] invest into a human digital interface that works in favor of the business environment, solidifying the connection between brand and customer, raising the cultural standard both inside and online, and improving return of investment ratios measured financially and by customer conversion retention rates.
Wrapping up…
Chatbots are the future of omnichannel strategies, converting not only restaurants and its clients, but businesses alike to seamless operation states in the midst of the current pandemic, encouraging businesses to pivot rationally and quickly to stay ahead of the game.
Tell us your thoughts in the comments below, and be sure to check out this and more of our blog articles on this page.
