Meeting consumer expectations and staying ahead of the competition is a constant challenge for the foodservice industry. With research and data being so critical to success, knowing the right information to look out for and the best way to approach it can become crucial. Here, we will cover the Top 10 things to consider when conducting foodservice research.
1. Create a Market Segmentation
First and foremost, it is important to create a well-defined market segmentation. Segmentation consists of breaking down the market into smaller, more specific groups of customers based on characteristics such as age, geographic location, behaviors, and purchase patterns. This helps to further understand the needs of each segment and how to best engage with them through targeted marketing techniques and operational strategies. Take the time to thoroughly analyze the targeted audience for a better understanding of where to focus resources and efforts.
2. Consider Competitors’ Strategies
It is important to remain abreast of competitors and view the market from an overall perspective. Many times, ideas and strategies that other businesses are using can provide a good starting point or act as an inspiration. There are multiple ways to analyze and compare data, such as recognising the strengths and weaknesses of particular operators, measuring the impact of new concepts, or checking pricing strategies.
3. Review Data Set In-Depth
When conducting research, most companies utilize data from different sources and leverage analytics for deeper insights. For foodservice-specific data analysis, leveraging a comprehensive data set is essential. This includes menu data, pricing, customer reviews, and other metrics that give a better understanding of the customer preferences. Furthermore, credible market analytical solutions, like Brizo, offer access to singular and further detailed data and analysis which can help dig deeper into the data set and gain insights into new trends, local trends, and more.
4. Gather Consumer Feedback
The best way to get a clear and accurate view of customer preferences is to directly ask them and gather consumer feedback. With the changing customer needs and ever-increasing demand for personalization, collecting customer insights helps to ensure companies can meet their needs. When gathering consumer feedback, make sure to ask the right questions such as what they do or don’t like about the product/service, what changes they would like to see, and how they usually purchase the product.
5. Determine Consumer Habits
By understanding consumer habits, such as which meal kit they prefer, how often do they use delivery services, and what type of restaurants do they frequent, foodservice providers can determine new approaches and strategies in order to stay ahead of the competition. To determine consumer habits, utilize data on customer surveys, feedback, and reviews to get a better understanding of the preferences of the customers.
6. Evaluate Market Opportunities
Identifying new areas of the foodservice market to launch operations can open a variety of opportunities for a business. To do this, analyze the industry and local market and identify existing gaps or needs that haven’t been addressed. Leverage data from various sources, such as consumer preferences, restaurant trends, and competitor activity to inform decisions and evaluate potential high growth areas to focus on.
7. Use Technology to Streamline Processes
Adopting modern technology can help streamline processes and unlock new opportunities. From robotic kitchens, automated order taking, new payment methods, AI-based analytics, and more, leveraging the latest technologies is essential in improving foodservice operations. Use data to analyze which technology would be most beneficial for a particular business and understand customer preferences with the help of new personalized services.
8. Track Performance Metrics
Companies within the foodservice market should closely track performance and analyze metrics such as revenue, customer satisfaction, and operational efficiency. Further, tracking internal performance metrics such as food wastage and wastage costs can help in further optimizing operations. Analyzing the data from performance metrics can provide insights into consumer trends and inform strategic decisions, such as possibly launching new products, adjusting menus, or pivoting services.
9. Utilize Social Media
To remain competitive and engage with target customers, it is essential to leverage the power of social media. Social media provides a great platform to introduce new industry trends, advertise special offers, build relationships, create customer loyalty, and promote a business. Utilize the analytics and insights from social media to understand how customers are engaging with the brand and use that data to inform strategies.
10. Act on Insights
Finally, it is essential to act on the insights gathered. Use the data collected to inform strategies and make decisions that will help improve operations, increase customer satisfaction, and meet customer expectations. Develop plans and implement changes to operational or customer service strategies based on the insights in order to differentiate from the competitors.
Leveraging market research and insights collected from data sets can be a great way to spot new opportunities in the foodservice market. From creating a market segmentation and evaluating market opportunities, to utilizing technology to streamline operations and tracking performance metrics, having an understanding of the Top 10 things to consider when conducting research will help to stay ahead of the competition and meet customer expectations.
