Sunday, April 25, 2010

Prior to June 2008, any diner wishing to make reservations at the restaurant of his or her choice needed to do so before leaving home or the office. However, as sales of the iPhone, Blackberry and other smartphones surged, consumers became increasingly reliant on the ability to manage their affairs while on the go. The phones boasted apps that managed personal banking, ordered pizzas and updated facebook pages. Why not have the ability to make a dinner reservation too. So Open Table took the next logical step in expanding its business model: they went mobile. http://www.opentable.com/info/newspage.aspx?id=260http://www.opentable.com/info/newspage.aspx?id=259. http://www.opentable.com/info/newspage.aspx

According to Open Table CEO Jeff Jordan, they wanted to target the consumers who were “affluent, professional, time-constrained and want to reserve a spot while they’re on the move or without a computer at hand."http://www.unwiredview.com/2008/06/30/opentablecom-to-let-users-book-restaurant-tables-from-their-blackberry-or-other-phones-online/
The Open Table Mobile App is currently available for free download on smartphones with Blackberry, iPhone, Android or Palm operating systems.http://www.blackberryinsight.com/tag/opentable/. http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20090914005944&newsLang=en However, any mobile phone user with Internet access can use Open Table through a mobile- web based system. The benefits for the mobile diners are clear. They still get all of the features that Open Table offers- immediate, real time access to reservation information, guaranteed reservations and no waiting upon arrival- with the added advantage of being able to reserve the table from anywhere. Again, the cornerstone of the Open Table business model is that there is no cost to the consumer. Diners don't pay for the service therefore they are inclined to use it liberally. The increased accessibility and ease of use for diners translates into broader reach and more customers for restaurants. If a group of friends wants to grab a bite to eat after basketball game, Open Table's mobile apps lets them know whether or not the closest, most convenient restaurant can seat them and if not, where they can get a table without waiting and without spending unnecessary time on the phone.

By October 2009, Open Table had seated one million customers via mobile apps. The company also reported that its mobile apps had resulted in over $50 million in revenue for its participating restaurants. http://www.washingtonpost.com/wp-dyn/content/article/2009/10/29/AR2009102904395.html.In February 2010, the number of diners seated had grown to two million, generating over $100 million in revenue for restaurants. http://investors.opentable.com/releasedetail.cfm?ReleaseID=443931

Going mobile was not the only way that Open Table has expanded its product. First, the website is organized in a way that provides the diner with immediate access to information in order to make the decision of where to eat, and more importantly for restaurant owners, where to spend their money. The site is searchable allowing the consumer to narrow a selection by any number of factors: geography, cuisine, price, menu items, etc. A customer looking for an upscale seafood restaurant in Harbor East will automatically be directed to The Oceanairre Room without having to weed through a list of places that she will never visit. This is especially helpful for travelers who are not familiar with the restaurant landscape of a foreign city. Any potential obstacles between a particular restaurant and potential diner are removed, providing a direct path between the restaurants who offer a particular service and the customers who are ready, willing and able to pay for it.

Open Table also provides a mechanism for customer feedback and reviews of past dining experiences to help future customers with their choices. http://www.opentable.com/info/newspage.aspx?id=271. But why would restaurants, that pay handsomely for the service, want the company to provide a forum for an aggrieved customer to (perhaps unjustly) trash it and potentially risk losing business? The main attraction to restaurants is the accessibility to the marketplace- so why would they want to risk being portrayed in poor light? The company has assured participants that the customer review function is reliable. Only customers who booked through Open Table and actually showed up for the reservation are permitted to post a review. This information is easily verifiable through Open Table. This protects against potentially bogus reviewers from posting inaccurate and unfair comments. Open Table also monitors the reviews for crass or inappropriate comments, and they are only posted for 60 days.

The diners gain clear benefit from customer reviews. They read about the experiences other diners had with a particular restaurant and are left to make up their own minds. Product reviews are always helpful to consumers, knowing that every consumer's needs and tastes are different. The benefits to the restaurants are more unclear, but they're there. First, good reviews (real or bogus) are obviously always welcome. Second, it's a direct channel to customer feedback on the product. Constructive feedback, even in the form of a bad review, can help businesses reshape or retool their products to better meet customer needs. If the restaurant didn't get it right, they should want to know why and have the chance to correct it.

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