Adapting to Change: Marketing Strategies for Restaurants in a World Without Third-Party Cookies

A recent SimplicityDX studyfound that customer acquisition costs increased 222% over the last eight years. Combined with media costs on the rise, marketing budgets are stretched tight.

One possible solution? More emphasis on targeting and personalization, which can cut customer acquisition costs by up to 50% and raise revenues by 5-15%, according to McKinsey research. But as new privacy regulations limit the availability and accuracy of third-party cookie data, it raises the question of just how achievable this will be in the years ahead.

Fortunately, we have options. Here are some practical alternatives that marketers can leverage to deliver engaging, relevant experiences without relying on cookie data.

1. First-Party Data Collection

In a post-cookie era, robust first-party data collection should be the cornerstone of any personalized marketing strategy. Restaurants need to shift their focus toward accumulating detailed purchase data and customer insights through direct interactions.

This strategy goes beyond the collection of birthdays or favorite dishes. By implementing smart systems and AI, restaurants can identify patterns in customer behavior such as what customers are buying, when, how, and how often.

Some offer personalization examples based on first-party data collection could include:

• Food preferences and dietary restrictions - An individual who always orders vegetarian meals could be presented with vegetarian, non-meat offers and imagery while browsing their brand loyalty app
• Dine in, delivery, and take out - Customers who always or almost always order delivery receive discounts or loyalty points for ordering delivery again, further encouraging the behavior
• Individual vs. group dining - Customers who always order multiple meals or kids meals could receive family-focused offers
• Targeted dayparts - A customer who tends to purchase snacks after lunch could receive a targeted midday mobile notification for an offer on their favorite treat

2. Collaborations and Partnerships

Collaborations and partnerships can provide access to second-party data, which is essentially another company's curated, engaged first-party data. Using owned media for cross-promotionscan be a powerful addition to any marketing strategy, leading to increased engagement, a strengthened brand identity, and even reduced marketing costs.

Identify non-competitive businesses with a complementary customer base and explore co-branded marketing campaigns. For example, a partnership between a restaurant and a local cinema could involve offering meal discounts with movie tickets, providing a direct way to engage a relevant audience and grow the brand's customer base.

At Mobivity, we build partnerships between restaurants and leading mobile game developers.

Two out of every three consumers play mobile games, and with more than 3 billion people playing mobile games worldwide, there's an incredible, untapped opportunity for brands to acquire hungry, purchase-ready new customers.

3. Server-Side Tracking

With server-side tracking, restaurants can collect data from their own websites more accurately and securely. Unlike traditional client-side tracking that relies on cookies, server-side tracking processes data on the server, reducing the risk of data breaches and improving privacy compliance.

In fact, server-side tracking has a lot of benefits over client-side tracking. Beyond the security and compliance benefits, it also has:

• Increased accuracy - Server-side tracking is less prone to interference from ad blockers and browser privacy settings, resulting in more reliable data collection.
• Cross-domain tracking - Server-side tracking enables a unified tracking system that can follow user interactions across multiple domains owned by the same entity.
• Customization and flexibility - Businesses have greater control over what data is collected and how it's processed before sending it to analytics platforms.
• Improved performance - By processing data on the server, there's less reliance on the client's browser to execute tracking scripts, leading to faster page load times and a smoother user experience.

Integrating server-side tracking requires some technical know-how from a developer. But once it's implemented, the brand can gather detailed insights into customer preferences and behavior without relying on third-party cookies. This data can inform personalized email campaigns, tailored online experiences, and more strategic loyalty programs.

4. Industry Insights and Market Reports

Staying informed about broader industry trends, such as evolving menu preferences and dining habits, can help restaurants make data-driven decisions in their marketing strategies. This involves analyzing market reports and industry insights to anticipate changes and adapt quickly.

Subscribe to industry intelligence services and participate in restaurant industry forums to gain early access to trend reports and consumer research. Use this information to adjust your marketing strategies, menu offerings, and promotional activities.

Some food-focused market research companies include:

• Technomic
• FoodData Central
• NPD

Just keep in mind that your own gathered data has value, too. You may find that certain regions or audiences behave differently than how industry market reports predict.

5. Geo-Targeted Advertising

Geo-targeted marketing is already a tried-and-true targeting strategy for restaurants, especially chains serving ads to users within a defined radius of restaurant locations. But beyond targeting based on proximity to specific locations, there's even more potential for brands to leverage geo-targeting to create personalized experiences.

Advanced geo-targeting capabilities could adapt to real-time conditions like the weather. This could involve promoting cold, refreshing drinks or desserts on an especially hot day or encouraging diners to pick up food before an incoming storm hits.

Other opportunities could include tailoring ads to local events, landmarks, or flavor trends. Nearby conventions and tradeshows, for example, bring a large influx of visitors looking for places to eat. Create tailored ads that call out the event's name and proximity to the restaurant to encourage foot traffic from the event.

6. Contextual Advertising

Without access to third-party cookie data for direct targeting, you may not be able to target customers directly. You can, however, still meet them where they're already going.

If your restaurant caters to a specific target persona, engage potential customers by placing ads in contextually relevant online environments. This strategy relies on aligning your brand with content that matches your audience's interests.

Some examples could include:

• Advertising family meal deals on parenting or family websites.
• Promoting a sports bar or pub food specials on sports news sites or during live game streams.
• Partnering with mobile gaming platforms, considering that 56% of gamers are more likely to purchase from brandsthat appear in their favorite games.

Mobivity's Connected Rewardsfocuses on the mobile gaming audience because of its relevance to diners. By promoting a mobile game within the context of your brand and tying the download and gameplay to your brand offers, we see redemptions increase as much as 35x. Subsequent redemptions from those who participated increase by 2.5x.

How does it work? Mobile game players typically only get virtual rewards that can only be used in the game. With Connected Rewards, they can instead receive a real-world reward from your restaurant such as a free burger, drink, or dessert. Mobile game players are eager to redeem, leading to increased frequency and transaction sizes as they make unplanned visits to dine with you.

Brands Get Results with Connected Rewards™

Consumers are leaving traditional media channels, which means you're spending more money from a shrinking budget only to reach smaller audiences. Combine that with limited access to cookie data and it may feel like an uphill battle to track down engaged, purchase-ready customers.

Connected Rewards attracts consumers from the #1 fastest-growing audience - mobile gamers! This audience of 3 billion people plays mobile games for entertainment in the virtual world, but they eat and shop in the real world. They're eager to redeem high-value rewards at your restaurant!

Extend your reach and boost traffic, all without increasing your marketing budget. Contact us today and find out how!

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