The wheels have started to turn for Deelish Brands, and so now it’s time to turn my attention the customer. More specifically, the Fatburger customer. This exercise starts during the design phase, as I believe design can play a major role in the success and failure of a restaurant. To do so, one of my favorite frameworks is the Pirate Metrics, developed by Dave McClure. The Pirate Metrics are based on five measurements of consumer behavior. The first letter of each behavior spells out AARRR and hence the namesake.
The concept is simple. Measure each of the five customer behaviors. Optimize the operations and marketing strategies for each customer behavior. Make more money. Here’s a diagram of the Pirate Metrics:
Acquisition – Where do my customers come from and how did they find out about me?
Activation – My customer’s first experience. Was it a happy one?
Retention – How do I get my customers to keep coming back?
Referral – Are my customers referring other customers to my restaurant?
Revenue – Am I generating the right revenue?
Improving the conversion percentage for each of these metrics results in higher revenue. Many folks will say that the restaurant business is all about location. True, but that fits into the acquisition bucket. Some will say it’s all about great food and service. Yes, and those fit into the activation, retention and referral buckets. Some will argue the key is value for money. Sure, that fits into the retention, revenue and referral buckets.
Truth is, the restaurant business is like any other business. It must make sense from both the inside and out. That’s why I spent the last few weeks thinking about our Why and our Core Values. This serves as my foundation. Now it’s time to build the right business strategies on top of this foundation.
Here we go.