In this article we’ll be talking you through…
- What customer lifetime value means
- Why app users are worth more than walk-in customers
- How loyalty increases repeat ordering
- A simple way to calculate customer LTV
- How YUMBI helps restaurants grow customer value
Chances are, your QSR focuses heavily on getting new customers through the door. But long-term growth often comes from something quite different – keeping customers coming back again. And again. And again. That’s where loyalty and digital ordering become especially powerful and meaningful.
A customer using your app regularly is usually worth far more over time than a once-off walk-in customer. Why? Because app users are easier to reach, easier to understand, and more likely to order again.
Why app users spend more over time
Walk-in customers are often anonymous. They’re feeling peckish, so they pop in. You may never know who they are or how to contact them again. Once they’re gone, they could be gone for good. App users, however, are different.
They create accounts, save favourite meals, and receive personalised offers. You can send them push notifications, loyalty rewards, and targeted campaigns based on their behaviour. In essence, you’re starting, then building a relationship with them. This helps increase repeat orders and customer retention.
Understanding lifetime value
Lifetime value, or LTV, measures how much profit a customer generates for your QSR over time.
The more often customers order and the longer they stay loyal, the higher their value becomes. Let’s take a simple comparison by way of a story…
Imagine two customers.
Jenny (a walk-in customer) spends R110 per visit and orders just over once a month. Over time, she may generate around R726 in profit.
Now compare that to a Sihle (a YUMBI app user). He spends slightly more per order, orders more frequently, and stays active for longer because of personalised engagement and loyalty campaigns.
Over time, Sihle could generate more than R2,000 in profit.
That is a massive difference from a single customer relationship.
How YUMBI helps increase loyalty
YUMBI helps your QSR turn anonymous customers into known customers. It helps you…
- send personalised offers
- automate win-back campaigns
- encourage repeat orders
- reward loyal customers
- increase basket size through upselling
This creates stronger customer relationships and more predictable revenue growth.
Remember, make an effort to own your customer relationships, and you increase more than orders. You increase real lifetime value.