In these days of oil spills and mine disasters, it might seem a little off-base to ask about mining, but I think you need to become an expert at it – and do it regularly.
It’s a critical skill if you’re concerned about keeping your business pump primed with new and returning customers – especially returning ones.
When I say mining, I mean mining your customer/order database.
Yellow pads and shoeboxes
No matter what you use to keep track of this stuff; a yellow pad, QuickBooks, a ledger book, your CRM (customer relationship management system) if you’re using that tool like a shoebox, you’re likely making a five or six figure mistake.
What I mean is by shoebox is stuffing receipts and sales data and similar info into it all year long and never referencing it again until it’s time to do your taxes.
That shoebox is your gold mine. It’s the asset that many businesses ignore – often at their own risk.
Let’s talk about Mary. She owns her own business and has 14 employees.
You would typically know this because you saw a profile of her business in the paper. How do you remember that fact?
You put it into your CRM (again, customer relationship management system), tickler file or *something* that organizes your data so that you can search for it later (I’ll get back to that).
Out of nothing more than gut feel, you know that she visits your restaurant 3 times a month and you also see her occasionally at events you cater.
What you may not know is that Mary’s business entertains clients twice a month and has an in-office staff appreciation lunch every other Friday.
Have you ever catered those events?
If not, does she know that you cater? She should, because she attends events you’ve catered – so why doesn’t she use you once in awhile?
Have you asked her?
It’s possible that her current caterer rocks the house *so well* that you might not ever get a chance to show your stuff.
One thing is certain – if you don’t ask, you won’t likely get a shot. Tantamount to that is *knowing that you should ask*.
A message that is in context to the proper person is miles ahead of a generic message to everyone.
Have you made any effort to let your regular customers know that you offer catering for their special events? More importantly, do you know exactly which regulars would have a use for those services?
Do you know how to get in contact with them? Do you know when they last visited your restaurant? Do you know what kind of experience they had during their last visit?
Your customer / order tracking system should allow you to store info that lets you find out such things. If yours doesn’t, get a new one or at the very least, find a way to export the data into something that allows you to search this info.
Things you’d like to know:
- Who has reservations this weekend who also owns a business?
- Who has reservations this weekend who hasn’t visited in two or three times their normal visit frequency?
- What regulars have we not seen in a month or more?
The answers to these questions will yield info about your customers and more importantly, about what you’re doing, how well you’re doing it and best of all – what customers you should have a catering conversation with.
If they do, who else does?
Here’s where the mining comes in handy…
If your catering gig database is sorted by “What do the businesses do?” and then you ask to see only those businesses that use you monthly, what do you ask for next?
Let’s sort them by what they do. Maybe the top 3 types of businesses are architects, real estate brokers and luxury home builders.Â You can guess, but you won’t know until actually you collect this data.
Now take a look at your entire restaurant database of regulars. How many of them are in those 3 lines of work?
Hmmm. Wonder if any of them need catering?
PS: If you don’t have a restaurant, look at this through the lens / terminology of what you do. The same concepts apply no matter what.