Monday

Marketing to Existing Customers

Who is most likely to visit your restaurant right now, given the fact that most consumers are eating out less:

A. A new customer, one who has never visited before but is looking to try something different OR

B. An existing customer, one with a tighter dining budget who has little tolerance for risk (that is, trying something new and possibly wasting their limited dining dollars)?

Consumers are eating out less and share of wallet is going to those restaurants we've already tried and liked. Those restaurants where we know the owner get higher ranking over restaurants that simply have good food. It's human nature, we're risk averse.

If your transaction and customer counts are down, remember that they are down across the board. It's not just a lack of new customers trying your concept, it's existing customers whose frequency of dining has dropped off. Here are 5 ways to market to existing customers to increase their frequency, their ticket average, or both.

1. Bounce-backs. You already know where to find existing customers, they're in your unit. Invite them back (soon) with a bounce-back coupon. Make the expiration date tight (one week) and make the offer for something specific on your menu (modify behavior) instead of a blanket $ or % off.

2. Email marketing. They've given you their contact information, they've told you it's ok for you to contact them, why aren't you contacting them?

3. Fishbowls marketing. You know their name, telephone number, and email address. You also know their company, job title, and physical address. Choose folks who are candidates for catering, boxed lunches, or large carry-out orders.

4. WOW! them with the experience. Now's your chance to make everyone feel special. No excuses (or leeway, in the customers' minds) for dirty bathrooms, indifferent cashiers, poor quality or slow service.

5. Walk the tables. Nothing makes customers feel more special. Nothing introduces the brand (the brand is YOU!) like walking the tables. This will build a bond with your customers that will outlast the present economic downturn by far.

Wednesday

Bad News for Restaurant Marketers

From Baron’s, November 17, 2007 – Survey by RBC Capital Markets:
- 43% say they’re eating out less now than 6 months ago (vs. 39% in August)
- 59% of those polled plan further cutbacks on eating out
- 20% of people were willing to purchase higher price entrees or desserts, vs. 27% in August
- 90.3: latest current-conditions index, a predictor of restaurant sales, down 10 points

Scary. Your choices, however, are to curl up and wait for it to end or to do what you can. Many studies indicate that doing something now, even if you don't see immediate results, will help you to emerge from the downturn stronger than your competition.

Suggestion 1: Advertise
Really? Advertise? Yep. Studies show that those who advertise consistently during economic downturns fare better than their non-advertising competitors. Don't blow it out, but be consistent. Another benefit is that advertising clutter is probably lower now than it has been in a long time. Others are pulling back ad dollars waiting for times to get better.

Suggestion 2: Show even MORE love
Your current customers are your most loyal. The fly-by-night folks have already flown. Make sure your customers know how much you appreciate them. Don't take every sale for all that it's worth, work the relationship to create a life long customer. Discount future visits, walk the tables, give Lagniappes to groups and individuals. Show them you are thankful for their business.

Suggestion 3: Modify your local store marketing plan
Guerrilla marketing was made for these economic conditions. Modify your local store marketing plan to be less event focused and even more personal contact focused. You'll need to pare back on the size of your audience, choosing more intimate gatherings, but the effects will be lasting. Your competition isn't doing this.

Tuesday

Gift Cards

I've had several questions lately as to how to sell more restaurant gift cards, so I figured I'd write it out so everyone can see it.

The first thing to keep in mind is that gift cards can only be sold to people who have tried your food. Would you ever purchase a gift card from a restaurant at which you had never eaten? Not likely.

So your audience is existing customers, and that means using media that you KNOW reaches your existing customers.

The next thing to keep in mind is that, while you may WANT to sell $20 cards to everyone, many people will treat gift cards as an easy solution to their shopping list. Few would purchase $20 cards for their mail carrier, barber, son's soccer coach, or daughter's ballet teacher. But many people will purchase 5 $10 cards to keep on hand for just such an occasion.

Merchandising
In-store POP is critical. Take down your other promotions and focus on gift cards at the point of sale. Train your staff to suggest cards. Know the cards' place in someone's gift-giving strategy: mailman, hair stylist, teachers, neighbors (who got you something but you forgot), co-workers, etc.

Answer the phone "Thanks for calling. Would you like to buy a gift card?"

Fishbowl
"Drop business card here to win a $20 Gift Card!"

Email
Send a message with all the reasons to give a Gift Card / Certificate (see above for suggestions). Send another one later with an incentive (FREE sandwich with GC purchase of $20 or more!).

Catering
Do you have contact information for every person who has ordered a catering from you in the past year? You should. Now is a great time to go back to them with a special "catering card" - a gift card of $25 or more to be used toward catering.

Complementary Audiences
You have several new complementary audiences that can help you both market your restaurant and sell your gift cards / certificates at the same time. Focus on small businesses who purchase holiday gifts for clients (large businesses will have a process for this, focus on the smaller people).

- Pharmaceutical Reps
- Real Estate Agents
- Insurance Agents
- Financial Planners
- Mortgage Brokers
- Hotel GMs / HR

These businesses typically spend more money on smaller gifts (because they work in a referral business and they use gifts to thank existing customers). Because of this, they often buy cards of $25 in value (which can be written off).

In fact, many people I know in these types of businesses will purchase $25 cards for their own use because the entire $25 can be written off as a gift, whereas lunch isn't completely deductable.

In any case, focus on your audience and be realistic about your goals. You won't sell a ton of $20 cards in-store, but you will to the right people. Likewise, if you're sitting in front of someone with a budget, sell larger cards for use toward catering (you'll get two sales for the price of one).

A Time to Reflect

Over the past two months, I've had several owners confess to me that they are tired. Not just tired of working the store, but bone tired - that weary that comes from grinding it out, day after day, with few results.

That's where many of you are, especially in this economy. Local store marketing is rarely easy, but it's usually at least fun. Not so much these days.

Vacations or long weekends don't seem to be the cure. It takes 2 days to stop thinking about your to-do list and the work seems to pile up while you're gone. The risk of burn-out is high, and there doesn't seem to be an end in sight.

But now (as the holidays approach) might be the time for you to find exactly the time you were looking for to spend ON your business instead of IN your business. More on that at the end. First, some perspective - for which we'll turn to football.

University of Georgia football coach Mark Richt is an offensive-minded coach. He was offensive coordinator at Florida State and, until very recently, he created the game plans and called plays during the game for UGA. This year, however, he turned that responsibility over to someone else, freeing him to think about how to make the team better in smaller ways.

Since then, he's focused on being a leader instead of a doer. Since then he's engineered team buidling moments, helped the fans connect with players, and led his team past a turning point in its season - maybe its program.

Richt is still involved in the game plan, but he doesn't construct it. He still offers suggestions in play calling, but someone else has the responsibility. The result is that his players are happier, his assistants are better coaches, and the team is experiencing more success. They might be playing as well as any team in the country right now.

The lesson here is that he didn't "get away from it all" - he took a step back. The holiday season offers you the chance to do the same, to pull back from the nitty-gritty and to focus on leadership and employee development.

How can you get better? How can your team get better? What things can you do in and for the community - because you want to and now have time for, not because you might get a catering deal from it?

The holidays offer you a unique opportunity to spend more time ON your business instead of IN your business. The perspective gained from that, even if for only a short period of time, might just help rejuvenate you.