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Are you caught up in the vicious circle of having to regularly offer “deals” and “coupons” just to keep up? If so, what can you do to stand out and generate customer visits? The answer is simple - build loyalty. In this informative seminar, learn why couponing tactics are broken and not generating the type of sustainable traffic that your restaurant is looking for. Hear about real results and strategies to develop guest loyalty that will increase your email open rates, Facebook visibility and of course put customers in seats. The Ohio Restaurant Association is proud to partner with Fishbowl to provide a comprehensive online suite of tools and solutions designed specifically for restaurants of all sizes, including Fishbowl's industry leading email marketing,social media marketing & reputation management.
Citation preview
Remove the Strings! How to Build Guest Loyalty with
Email MarketingJoe Gabriel
Fishbowl
Want a copy of presentation?
Joe Gabrieljgabriel@fishbowl.comwww.fishbowl.com/nra
Twitter/@fishbowljoeFacebook/@fishbowljoe
Loyalty Marketing: Beyond the Card
What Is It? Loyalty is a feeling of
attachment that customers have towards a brand.
Loyalty Marketing focuses on strengthening brand attachment to influence consumer behavior…one member at a time.
Why Do It? The goal of Loyalty
Marketing is to maximize the Lifetime Value of each customer through increased member frequency, spend and retention.
Loyalty Works
57% of adults said they would be more likely to visit a restaurant that offered a customer loyalty program rather than one that did not.
Source: National Restaurant Association
Question?
What is the one thing you need to…
– Make an online reservation?– Set up a Facebook,
Foursquare or Twitter account?
– Write a review on Yelp?– Place an online order?
Email is Big
Source: Visible Gains
Growing Bigger
Big ROI with Email
Source: Direct Marketing Association, The Power of Direct Marketing, 2011-2012
Easy with Single Log-in Management Tools
Manage from one place
• In Store• Paper Sign Up Slips• Staff Engagement & Incentives• POP• To-Go Bags• Window Clings• Placemats• Staff Buttons
• Online • Website Join Form• Social Media Sites• Contests/Sweepstakes• Forward to a Friend• Online Reservations & Ordering
• Other Sources• Public & Charity Events• Mobile Phone
Build Your Email List
4 Walls Focus – Easy Goals
X
Just 1 sign-up slip per server
X
30 days
300 New Members per
Month
1 location (3,600/yr)
How it can all add up!
Elements of a successful email program Mix of 3 elements: Brand,
Community, Loyalty
2-3 Loyalty “gifts” annually to drive enrollment and baseline ROI (ex: BOGO entrée gifts on Welcome, Birthday, Anniversary)
12-18 brand and community messages per year
1-2 other “Surprise” offers, usually one-day offers
= Total of 18-24 communications per year
Strings you say?Strings turn Gifts into
Coupons
Restrictions encourage the guest to NOT redeem
Thank You= Loyalty
Case StudyWelcome Gift
Free Menu Item AVG Cost of Gift $9.50 57 % Open Rate 12K Member List
AVG Check- $55
Birthday Promo 13,563 members No-strings attached
Birthday Gift 40% redemption rates
(versus 8-12% Fishbowl average)
Results: $200,000 in directly attributable sales
…plus great goodwill and lots of new diners
Case Study
Case Study
FREE Birthday Pizza 50% Open Rate No strings attached Built list over 12K46% Redemption Rate
Other Loyalty Campaign Ideas
• Belated Birthday
• Thank You for Dining
• Wedding Anniversary
• “We Miss You”
Email Customer Appreciation PromoCase Studyoverwood (wood-fired american kitchen) Father’s day at Overwood offers Dad a classic gift (we’re not telling) along with a $5 gift Certificate for his next visit! Kids---take our “Dad census” and win a free dessert…Special Father’s Day menu available all day!
ROI:Sales up $1,546 (17%) Cost of $83 (+ Old Spice)Plus bouncebacks…
All-In Per Store ROI Assumptions:
Table-service, $16 PPA x 2.5 guests = $ 40 average check per table 2,000 list members per store; 3 loyalty gifts (Welcome/Anniversary, B-day, Survey)$ 9 avg. discount, 10% average redemption, 40% direct costs, 20% cannibalization
per store, full year: Loyalty gifts only +1 visit/yrloyalty gift redemptions 600 600additional undiscounted visits 0 2,000total “program” visits 600 2,600
(x) check average = Added Sales $ 24,000 $ 104,000(-) 20% cannibalization on offers (4,800) (4,800)
(=) Net incremental sales $ 19,200 $ 99,200
(-) All discounts (600 x $ 9) (5,400) (5,400)(-) 40% direct costs (on incremental sales) (7,680) (39,680)
(=) Added Profit before program costs $ 6,120 $ 54,120
Joe GabrielFishbowl
jgabriel@fishbowl.comwww.fishbowl.com/nraTwitter/@fishbowljoe
Facebook/@fishbowljoe
THANK YOU!
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