2013 Remove the Strings How to Build Guest Loyalty with Email

Remove the Strings! How to Build Guest Loyalty with Email

Marketing

Joe GabrielFishbowl

Copy of Presentation

Joe [email protected]/nra

Twitter/@fishbowljoeFacebook/@fishbowljoe

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?

Joe GabrielFishbowl

[email protected]/nraTwitter/@fishbowljoe

Facebook/@fishbowljoe

THANK YOU!