Marketing Agency Partnership

FoodHub NYC Partners with Orda to Fix Broken Churn Rate

For many marketing agencies dedicated to the food and beverage industry, retaining customers is a real challenge. In this article we cover how Orda and FoodHub NYC marketing agency partnered together to create an exceptional connection with their restaurant portfolio.

February 15, 2022

Christine Davis - Marketing Director

If your marketing or consulting agency is struggling with customer retention, you are already familiar with churn and how it's a critically important metric. Food dedicated marketing and consulting agencies are a great example of how churn rate is a critical factor for success. According to a survey made for agencies, retention rate is on average 50%. This means that most of these businesses struggle to survive. So how do you reduce the churn rate to only 5% to make your business scalable?

Often marketing and consulting agency managers have a very basic idea of how churn works and how to best combat it. All churn is not solved the same way. In fact, broadly speaking you have four phases of churn.

  • Onboarding Phase
  • Impact Phase
  • Loyalty Phase
  • Marketplace Phase

The magic is to learn from Tech SAAS (Software as a service) companies that already show 5%-10% churn rate. Marketing and consulting agencies are now offering technology as part of their solutions to restaurant clients. This lets them create passive recurring income by hooking their services to their clients' day-to-day operations.

Often, it is easier to sell technology as your foot-in-the-door with a restaurant than marketing because the ROI is clearer. Then, you can add marketing services on top of the technology.

Specifically, marketing agencies are seeing recurring revenue by launching mobile, web, and kiosk ordering for their clients. They are building a sustainable SaaS income stream by being connected to their clients' operating system. This reduces the unpredictability of short term projects. It also lets you earn revenue without having to do much labor.

For example, in the old model you only got paid for creating new content on an ongoing basis. That prevented your business from scaling and it was easy for clients to cancel. Adding software to your portfolio lets you generate scaleable income each month that isn't tied to content creation.

Offering digital ordering in your portfolio opens up new marketing services you can upsell to your clients. For example, you can create Instagram or Facebook ads about your clients' apps, email or SMS marketing, redesign their website to feature their app, or set up Google Ads or even Apple Store or Google Play ads. You can even use Orda Promote Tools to automate marketing content creation about your clients' mobile apps. It is a win win where you bring more online revenue to your clients while creating more opportunities for your agency.

Orda is looking to partner with food and beverages dedicated marketing and consulting agencies that are looking to increase the lifetime value of their clients by adding digital ordering to their portfolio. You can also send an email to affilates@getorda.com to join!

Steps to fight high churn rate

  • To combat early-stage churn, you need to look closely at the user experience you are helping clients create in their stores. This is where helping your clients adapt their own mobile ordering app and kiosks comes to help. You create an amazing customer experience by delivering a full ordering solution so your customers feel that the experience with your marketing solution is unprecedented.

  • Welcome each new customer - Your clients are counting on you to help them welcome each new customer in a digital way. The key is automatically personalize the onboarding journey to each of your clients' customers with technology. Create that emotion and connection using the Orda Promotional Tools that allow you to make an impact for your customers that they have never seen before.

  • When you help your customers to create a loyalty and reward program and you maintain it as a service, they will stick with your solution because you are their provider. This is a major advantage that creates high dependency.

  • Being a marketplace allows you to host several restaurants in your digital marketing platform and leverage your marketing capabilities to show fast results. For example, with your own Apple Store and Google Play account, you show potential clients value quickly by showcasing how you make many other businesses stand out in mobile.

For more info on mastering churn by stage (and other growth strategies around customer acquisition and CLTV), opt-in to our partnership program

Case Study - Meet FoodHub NYC, Roberto Hernandez

The FoodHub NYC marketing agency is a NYC local digital marketing and branding agency committed to creating memorable experiences for their restaurant customers. After moving from small town to New York, owner Roberto Hernandez worked in a restaurant for six years. It occurred to him that he could help many other restaurants with his marketing expertise. He set up Foodhub NYC to help restaurants with everything from marketing to operations. One day, a local business owner walked in excitedly and exclaimed "Roberto, I need help growing my business! I need to be exposed and to be everywhere." After doing a great job for this client, Foodhub NYC exploded rapidly across New York and now other states.

Roberto approached Orda because he saw the potential in providing a technology solution as part of his marketing services. On why he partnered with Orda, Robert shared, "I was looking to offer a whole package deal to restaurants because they feel relief from not having the 30% commission. Now that we partnered with Orda we are helping clients keep 100% of their profit. It makes them feel more satisfied and I'm happy to find a company that actually cares about the business owners and the customers as well because it makes it easy, reliable, and it's integrated very nicely."

Orda worked with Roberto on creating a marketplace for his mobile apps. This included creating App Store Developer and Google Play Developer Accounts. Then Orda worked on building the mobile apps and loyalty programs for his customers through their Square Dashboard accounts.

Roberto shared how this partnership impacted Foodhub NYC's new merchant acquisition: "It impacted me very much for the good. The partnership is one of the ways I start a conversation with a business owner. I say, "Can I save you from losing 30% on a commission?" And it catches peoples' attention and they want me to tell them more. Then I tell them I can do other things as well and help them out at 100%, try to brand them at any angle. The partnership has grown our sales and I can expand myself all across the United States."

A success story of a business Roberto helped with the partnership is Alebrije, a Mexican restaurant in Brooklyn, New York. Alebrije is a family restaurant with six kids and a couple. At the beginning they hadn't really learned the technology base to everything. Roberto said, "I told them you don't have to worry, I will set you up. Now it makes it easier. They're getting orders, they're satisfied with this service, they're happy with the whole deal that it's making an impact on their restaurant, their family. The customer orders from their phone, it goes right to their kitchen and the business easily manages the orders with Bump KDS."

Roberto is proud of helping businesses stay relevant and not fall beind. Discussing the impact of the technology on clients like Alebrije, Roberto shared, "There are so many things I could say about the impact because now they really rely on the technology to run the business. Because for example if they don''t turn on the applications for deliveries, the first thing they'll think is I'm not going to make money. Technology has changed the whole establishment."

Example of how Foodhub NYC promotes their mobile app services to their restaurant network.

How Orda Affiliate Partnership Works

  1. You create an Apple and Google Account that will help you publish Online Ordering + Mobile Apps + Kiosks.
  2. You work with the Orda team to be assigned to customers and give them the marketing services they need.
  3. You get 20% commision for each customer you work with so you can scale with them for a long time.

Summary

Orda helps food marketing and consulting companies make more money through online ordering distribution. We open new revenue streams to your media company. As a result you hook your solution to your clients' solution and create recurring revenue for the long term.

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