Wednesday

5 Principles to Driving Trial

We all want more cusotmers, but some ways of gaining them are better than others. Mass media and awareness creation are one thing if you have brand presence, quite another if you're the new kid on the block.

And keep in mind, if you're a midwestern franchisee of a brand that is well known in the southeast, you're the new kid on the block.

So here are 5 principles to driving trial:

1. Volume solves everything. There's not a problem in your restaurant that can't be solved by driving more traffic. Make it a habit to always invite people in (as your guest, see #2) and to make new relationships. If your store is packed, you can sample other items and promote different services like catering. Having people come to you lowers your messaging costs.

2. Generate cash flow, worry about profitability later. If you want people to come in make the offer great, don't skimp. Keep in mind the lifetime value of a customer. If it takes "free" instead of "1/2 off" to do it then do it. Most people will bring a friend and you'll break even on the deal.

3. You're food rich and cash poor. Advertising costs are measured in cost per thousand (CPM). Your results should be measured in cost per customer. If product cost is $1.25, and you WOW! them with it, your cost per customer is $1.25. 100 customers cost $125. Compare that to sustained (read: effective) advertising.

4. If your product is good, prove it. Put your product into people's mouths every chance you get. Your product may sell itself, but it has to be introduced. Sample at events, give free product to small groups (where word of mouth spreads faster), and sample in-store.

5. Love me, love my product. People in communities love to know the owner, it makes them feel part of the business. If you support what the community supports (HS, band, youth sports, library) they'll support you. Again, word of mouth spreads faster from small groups than it does from large ones. Word of mouth about advertising doesn't spread at all. Support your local groups, get to know the people in your community, run for Mayor of Mayberry.

Marketing to Mayberry isn't all that hard, you just have to shed some of the "mass appeal" thinking. You don't need an entire city to love you, only about 3,000 people or so. If they know you, if you give them something for nothing and it's fantastic, they'll love you.

Next up:
5 Principles to Generating Frequency of Visit
5 Principles to Increasing Ticket Average

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