2013 Remove the Strings How to Build Guest Loyalty with Email
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Transcript of 2013 Remove the Strings How to Build Guest Loyalty with Email
Remove the Strings! How to Build Guest Loyalty with Email
Marketing
Joe GabrielFishbowl
Is Your Online Marketing Strategy Working?
Are you caught up in the…
What IS Guest Loyalty?
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
80% of your sales come from 20% of your customers
Acquisition works GREAT with Loyalty
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?
An Email Address!
Email is Big
Source: Visible Gains
Growing Bigger
How your guests want to hear from you
Big ROI with Email
Source: Direct Marketing Association, The Power of Direct Marketing, 2011-2012
Email is Permissive
LOYALTY EMAIL RULES
Belated Birthday Birthday Member An-niversary
Welcome LSM Postcards Overall Open Rate
Series1 0.690874921626274
0.472418913342957
0.343597692747268
0.57253410017961
0.214769894586029
0.250692980559494
0.2274
5.00%
15.00%
25.00%
35.00%
45.00%
55.00%
65.00%
Restaurant Email Campaign Open Rates 2011Source: Fishbowl Client Study 2012
Set Up Your Email Account
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
New Media
Marketing
Mobile Devices
Social MediaEmail
Brand Ambassadors
#1 choice for ages 25 to 65+
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
“But I hate to discount”….
Sorry, you have to Remove the Strings
Strings you say?Strings turn Gifts into
Coupons
Restrictions encourage the guest to NOT redeem
Thank You= Loyalty
And thank your Guests 2-3X per year
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 Promo
CASE STUDY
overwood (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
Questions?