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Remove the Strings! How to Build Guest Loyalty with Email Marketing Joe Gabriel Fishbowl
| Date post: | 21-Nov-2014 |
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Remove the Strings! How to Build Guest Loyalty with Email
Marketing
Joe GabrielFishbowl
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
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
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
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 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
