The perks of personalization: How email segmentation can boost your restaurant sales

If you had the choice between a vending machine coffee or a coffeehouse latte made exactly to your liking, which would you choose? Personalized versus generic wins every time.

Your guests feel the same way: speaking to their tastes creates a more memorable and craveable experience. This applies to more than just the food or drinks served at a restaurant: it also applies to the emails sent to your inbox. When a new message pops up and it directly reflects your preferences, you’re much more likely to open it, click through, and take action. Such customization is accomplished by something called email segmentation.  

What is email segmentation?

Email segmentation is sending different emails to your customers based on their actions with the purpose of sharing the most relevant information. 

Instead of sending one mass email to all guests, organize email recipients into smaller groups based on behavioral or demographic data, such as geographical location, previous purchases, or specific actions taken on your website. From there, you can craft personalized emails for each group with the goal of enticing them to read the full message. 

The benefits of email segmentation 

According to a Popmenu study, 59% of guests expect restaurants to track their orders/preferences so they can send special offers and news that is relevant to them. What’s more, Campaign Monitor found that 74% of online consumers get frustrated when content like offers, ads, and promotions are not aligned with their interests.

Think of the marketing messages you get from your favorite retailers. The ones you actually open and buy from are the ones that align with your interests–whether reminding you it’s time to stock up on past purchases or suggesting new items you might like. Guests expect the same treatment from restaurants, and the higher the chances they’ll open it and take the desired action. 

And those actions speak louder than words: Grecian Gyro, a traditional Greek restaurant in Atlanta utilized email segmentation to send personalized emails to their "most engaged" and "highest spenders" audiences. As a result, these messages had an 82% open rate–39% higher than their average email send–and 63% over industry average according to Campaign Monitor. The email also earned them 34 online orders, resulting in more than $1,300 in sales. 

Ways restaurants can put segmentation to work

While there are a lot of ways restaurants can segment their email lists, there are some standard and effective options to consider, including: ‍

• By location. If you have multiple locations, segmenting by where a guest frequents most will ensure they receive the most relevant local promotions. A customer who exclusively visits your suburban spot should only receive news about events at that locale. 
  
  • ‍Messaging example: “Join us at [specific location] for our summertime happy hour from 3-5 p.m. daily!”

• By ordering channel. Some customers stick to online ordering through your website or app, while others may prefer to pick up the phone or dine in at your establishment. Sending emails based on ordering preferences will make it all the more likely they'll place another order. 
  
  • ‍Messaging example: “App-only exclusive: Test out our new menu item, available only for orders placed via our app!”

• By frequency of visits. Every guest likes to receive the VIP treatment, especially if they’ve been a loyal, repeat customer. Try segmenting guests who order or visit on the regular with early access to promotions or loyalty perks. 
  
  • ‍Messaging example: “[Guest’s name], an exclusive invite to one of our most loyal guests.”

• By online offer redemption. Discount-driven customers will appreciate receiving coupons or promos specific to their tastes. By tracking guests who have redeemed past offers, and doubling down on deals, you can drive more conversions.
  
  • ‍Messaging example: “Order your go-to burger online today and get free delivery!”

• By engagement-based segments. Some marketing platforms, such as Popmenu, will make email segmentation easy by automatically “tagging” users based on how they engage with your website or emails. For example, someone who has ordered from your catering menu can be tagged as a potential catering customer and will be served up catering-specific news and promotions. These tags not only take the guesswork out of segmentation, but they also help you target the right message to the right guest at the right time.
  
  • ‍Messaging example: “We noticed you peeking at our catering menu – place an order by Friday for a complimentary dessert tray.”

Even small segmentation makes a big impact 

Don’t worry about drilling down to niche groups, especially when you’re just starting out with segmentation. Instead, choose a couple groupings that make the most sense for your restaurant, such as location-based guests or online-only customers, and grow from there. 

Sending more personalized, relevant emails will not only help you create stronger connections with your guests, but it will also improve your marketing results–and increase your restaurant’s revenue.