Catering CRM Software: Using It for Maximum AOV and LTV

Smooth internal operations, a delicious menu, and top-notch service are among the essential ingredients of a successful catering business. Whether you have a large team or a one-person company, you strive to ensure guest satisfaction. You can accomplish this by leveraging catering customer relationship management (CRM) software. 

The tool is a hub for everything from internal operations to engagement analytics. With proper implementation, it can help maximize your customer’s average order value (AOV) and lifetime value (LTV).  

This article outlines the important features of a catering CRM tool, how to use them to your advantage, and tips for successful implementation.

What is Catering CRM Software? 

Catering customer relationship management (CRM) software is a tool that helps catering businesses organize and analyze customer data. High-quality catering CRM software supports your company in these six ways: 

1. Manage contacts: Capture emails, phone numbers, names, and other critical client contact info with one trustworthy tool.  
2. Track sales: Document each sale, the amount of money spent, and which client made the purchase.  
3. Examine customer trends: Determine how you can alter services and communication based on client buying habits.  
4. Event planning: Know the number of attendees, event location, order specifications, and any other information needed to plan events.  
5. Implement marketing strategies: Based on aggregate data, determine the best marketing strategies to reach your target audience.  
6. Strategize loyalty programs: Determine how to reward repeat clients with personalized deals, gift cards, or exclusive offerings. 

Traditional contact management systems are simplified versions of a CRM catering software. Within it, you’ll find customer names, phone numbers, addresses, or other personal contact information.  

However, traditional systems lack data-driven insights and the ability to analyze customer engagement. Catering CRM features cover these areas and go further.  

7 Important Features of Catering CRM Software 

Catering CRM features vary based on the software. To help you make an informed decision, these are seven core features to look for in any catering CRM software: 

1. Order management: It’s easy for clients to place orders, just as it is for you to track, manage, prepare, and deliver them with restaurant delivery software.  
2. Inventory tracking: Maintain an accurate count of ingredients, dishware, or any other inventory you regularly use. 
3. Seamless integration: Ensure order and data accuracy by connecting the CRM with your other back office software. 
4. Event planning: Manage event dates, to-dos, inventory, and payment all within one platform.  
5. Customer engagement tracking: Gain insight into how clients engage with your business so you can customize their and their own guests’ experiences.  
6. Contact management: Ensure your client’s email, phone number, address, and name remain current.  
7. Reporting and analytics: Automatic reporting provides real-time data analysis to help you stay ahead of the competition. 

Average order value (AOV) is how much customers spend per order on average. Calculate it by dividing your total revenue by the number of orders. A CRM bolsters your AOV by providing key insight into customer trends and guest engagement. 

Leverage these data points to source opportunities to upsell, cross-sell, and offer exclusive rewards to your clients. A satisfied client is more likely to stick with your catering business. These consistent customers have a strong lifetime value (LTV), which brings consistent revenue to your business.  

Increasing AOV with Catering CRM Software 

With great CRM software in motion, increasing AOV is both strategic and straightforward. Use these five techniques to maximize AOV: 

1. Send your clients for personalized communication: Categorize your clients into categories based on engagement, industry, and loyalty, and then use these segments to send customized offers and messages. 
2. Integrate with your loyalty program tools: Connect your restaurant loyalty software with the CRM to offer your repeat clients exclusive rewards and benefits for their loyalty.
3. Collect customer feedback: Gather clients’ recommendations, requests, and general feedback to determine which areas of your business excel and which need fine-tuning. 
4. Aggregate customer engagement analytics: Engagement data informs how and where a client connects with your business. It also illuminates opportunities to upsell and boost AOV.
5. Identify areas where you can cut costs: Real-time data might point to places in your operations where overstocking, setbacks, or inaccuracies increase total operating expenses. 

Upselling is one of the best ways to implement data and boost AOV. It works by presenting clients with order add-ons they might not have considered before.  

For example, say one of your clients is placing an order online. Before they check out, you offer a list of potential add-ons based on their current order. These items could be extra sides, silverware, desserts, or anything else that may enrich their experience. 

Additionally, cross-selling is another option to boost client satisfaction. Continuing with the earlier example, you might add a complimentary dessert sample to a client’s order if it reaches above a certain monetary threshold. In short, you add items that complement the client’s current order without an additional fee or at a discount.  

4 Ways to Grow LTV through Client Relationships 

To determine how much value a client brings to your business throughout the engagement, measure their lifetime value (LTV). You can boost LTV by improving client relationships in these four ways: 

1. Maintain flexibility: As you learn more about your clients and their changing needs, be flexible to accommodate them.  
2. Implement feedback: Clients are more likely to return to your business when they feel their input is welcome and used to improve your services. 
3. Reward loyal customers: Establish a loyalty program to reward clients who often use your services or recommend it to others.  
4. Prioritize good communication: Maintain clear and frequent communication to give clients a good experience working with your catering business. 

Your CRM tracks client engagement. You can personalize your offerings based on their preferences and interactions with your business. The better you serve each client, the more likely they will have a satisfying experience and become loyal customers.

Integrating Catering CRM with Other Software 

Every business management platform you use generates valuable data. Your point of sale (POS) software captures how much a client spends and which goods or services they buy. Additionally, your financial software informs you how much you spend versus revenue so that you can calculate your total cost of goods sold (COGS). 

It’s important to aggregate data across your entire technology network. Integrated software ensures accurate data. It reduces the risk of duplicates or missing metrics. Use these three tips to help ensure a seamless integration: 

1. Select a compatible CRM: Before choosing catering CRM software, assess your current technology to ensure you select a tool that integrates well. 
2. Seek guidance from customer support: Lean on the CRM software’s customer support team to help you effectively learn the new tool, implement its features, and troubleshoot any challenges.
3. Understand your current data: Audit your present data to determine its location and accuracy before migrating it to the new catering CRM software. 

With your catering CRM software successfully integrated, the next step is incorporating its features into your day-to-day operations.  

Best Practices for Implementing Catering CRM Software 

As you learn a new CRM tool, ensure you take ample time to learn its features. Keep these four best practices in mind when implementing your new catering CRM software: 

1. Import current data: After verifying your current customer data is clean, migrate it into your new CRM software where all your client data lives, ensuring accuracy.
2. Create a change management plan: Establish a strategy for gradually implementing the new tool into your day-to-day operations.
3. Train your team: Whether it’s one person or a handful, make sure your team has adequate time to get acquainted with the new software.
4. Set up analytics tracking: To reduce the risk of data gaps, select which metrics you want captured within the CRM and set them up on day one.

No matter the size of your catering business, learning a new tool requires time and patience. To help you maintain a smooth process, these are three common pitfalls during CRM implementation and how you can resolve them: 

1. Fast implementation: Ensure your new catering CRM is appropriately set up and integrated before using it for day-to-day operations. 
2. Poor initial data: To ensure reliability, verify that your starting data is free of duplicates, gaps, and inaccuracies.
3. Lack of customer support: Select software that offers highly available customer support as you learn the new tech.

While preparing for every potential challenge is close to impossible, you can develop a contingency plan for the most common ones. That way, if unique setbacks arise, you have plenty of time and resources to find a resolution. After proper implementation, you’ll soon have high-quality business insights.  

Analyzing CRM Data for Business Insights 

Data from your catering CRM software grants you an insider’s look into your customer’s preferences, experience, and behavior. You can analyze and implement changes that enhance customer experiences, increase AOV, and boost LTV by tracking the right metrics. Use these three strategies to analyze CRM data: 

1. Name your goals: Capture your goals then use this information to guide your data analysis and gain meaningful insight into your business. 
2. Client segmentation: Divide your client base into groups based on buying habits to determine the best marketing strategies and connect with them. 
3. Identify trends: Client purchasing trends and preferences spotlight how client priorities shift so you can revamp your services to match.
4. Calculate COGS: Compare inventory costs to the goods clients purchase to determine your profit margins. 

Use your client data analysis to discover strategic upsell or cross-sell opportunities to increase the average order value. You can decide how to price your services, offer discounts or perks, and engage with clients based on their habits, boosting each customer’s lifetime value.  

Future Trends in Catering CRM Technology 

Advances in technology have the power to improve your current operations to boost revenue and client satisfaction. According to research published by Deloitte, customer spending increases 20% when ordering via technology. 

However, the challenge is identifying these trends. Here are four key trends in catering CRM technology to help you get started: 

1. Personalized experiences: Clients desire an experience uniquely catered to their needs. With high-quality data and consistent communication, you can create a memorable engagement with your company. 
2. Streamlined business operations: A catering business that runs smoothly behind the scenes allows you to offer top-notch service and work with more clients. Automations from technology like CRM software make this possible. 
3. Seamless online ordering: Today, customers are familiar with online ordering. One in three use online food ordering services at least twice per week. Offer clients the ability to place orders online to improve efficiency and boost revenue.
4. AI-generated insights: AI examines client data and offers recommendations for strategies to better connect with clients and improve your services.

Technological advancements support the improvement of internal operations, from placing orders online to accepting mobile payments. It additionally saves you time by automatically aggregating data, so you can make quality business decisions and stay ahead of the competition.  

What This Means for You 

With proper implementation, catering CRM software has the potential to drive both business growth and revenue. The tool’s robust features spotlight opportunities to strengthen your services and build lasting relationships with clients.  

Whether you’re aiming to boost average order value through strategic upsells or build a network of loyal customers to increase LTV, a quality CRM platform will get you there.   

Ready to adopt an all-in-one CRM software to improve customer relations and boost profit? Book a demo to learn about our catering and CRM solutions.