Monday

Bounce-Back Coupon Offers

I get a lot of questions about how to match your offers to your objective. What makes a good Trial offer? What about Frequency, Ticket Average, and Party Size. Below are some guidelines for determining this yourself (each unit is different), as well as some general offers.

1. Think like a customer. If you have never tried a restaurant, would you be tempted by a 10% off coupon? Me neither.

2. Use coupons / offers to modify behavior, not to discount existing behavior. $1 off on your next visit: BAD (and a little needy). $1 off our Chicken Club Quesadilla on your next visit: GOOD. Leads to Frequency of Visit.

3. Keep the strings to a minimum. "BOGO with purchase of 2 drinks" is what you want, but people see the strings and it doesn't feel like as good a deal. "BOGO between 11 am and 2 pm" works even better, modifies behavior, and people purchase the drinks anyway.

4. For Trial - make it an incredible offer. It only costs you money if it's redeemed (which is the point) and you've gained a new customer.

5. Frequency of Visit is a factor of menu trial: they more they've tried, the more reasons they have to love you. Bounce-back (with 10 day expiration date) to get customers to try something new.

6. Forego the discount, add value. Free upsize. Free side with purchase. Free dessert when purchasing our limited time offer. Use the value-add to modify behavior.

7. Match the offer to the audience. Lunch offers for lunch customers; dinner offers to dinner customers; catering offer to existing customers (not to a new audience, it's a hard sell).

These are the basics. Remember to think like the customer and give a great offer to modify behavior. Then you won't have to entice people to visit, it will be a habit.

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