Local Store Marketing has always been part science, part P.T. Barnum. I thought it appropriate to share this analogy by an unknown author:
When a circus comes to town, and you put up a sign, that's advertising.
If you parade an elephant through town, that's promotion.
If the elephant knocks down the mayor's fence, it's publicity. If you can get the mayor to laugh about it, it's public relations.
If the town's citizens come to the circus, and you show them all of the entertaining booths, show them how much fun they will have when they spend their money at the booths, answer their questions and, ultimately, they spend a lot at the circus, that's sales.
Monday
Thursday
Marketing: Science vs. Art
This question was posed to an ad agency executive the other day by the EVP of a franchise company: Is marketing a science or an art?
The first response from the executive was to say 'art'. He seemed to think about it for a second and then allowed that there was science involved. The question is an important one, depending on how large your company is and whether you're an upstart or the dominant player.
Marketing is both a science and an art for the largest of companies. Focus groups, reams of research data, and teams of internal and external resources cover every nook and cranny. The best and brightest minds working within ad agencies then take a stab at visually representing the conclusions and, at its best, advertising is elevated to an art form.
But for smaller guys, companies that buy limited ad space every year, companies that need each ad to generate sales and not just 'create awareness' or 'build the brand', marketing and advertising needs to be a science first and foremost.
Consider:
- 10x more people read the headline than the body copy
- 6x more people read photo captions than read copy
- Direct marketing companies know that long-copy sells
- We know that a $ figure in a coupon draws better than a % off
- Frequency is more important than reach
- Demographics and psychographics can predict results before you ever put pen to paper
- Marketing degrees are handed out by Colleges of Science, not of arts
The point is, too many designers and agencies give you the "branding" argument too early in the life of your company. Branding is important, no denying it. But the right message, presented to the right audience, using the proven methods honed throughout the history of advertising, drive sales. Everything else is just pretty.
So if you're a small business, developing your first advertising campaign, be a student of the craft. You're about to spend a good chunk of money on media that might not work, on creative that "looks killer" but doesn't sell, or on offers that don't achieve your goals.
'Art' isn't necessary to drive sales. 'Science' is.
The first response from the executive was to say 'art'. He seemed to think about it for a second and then allowed that there was science involved. The question is an important one, depending on how large your company is and whether you're an upstart or the dominant player.
Marketing is both a science and an art for the largest of companies. Focus groups, reams of research data, and teams of internal and external resources cover every nook and cranny. The best and brightest minds working within ad agencies then take a stab at visually representing the conclusions and, at its best, advertising is elevated to an art form.
But for smaller guys, companies that buy limited ad space every year, companies that need each ad to generate sales and not just 'create awareness' or 'build the brand', marketing and advertising needs to be a science first and foremost.
Consider:
- 10x more people read the headline than the body copy
- 6x more people read photo captions than read copy
- Direct marketing companies know that long-copy sells
- We know that a $ figure in a coupon draws better than a % off
- Frequency is more important than reach
- Demographics and psychographics can predict results before you ever put pen to paper
- Marketing degrees are handed out by Colleges of Science, not of arts
The point is, too many designers and agencies give you the "branding" argument too early in the life of your company. Branding is important, no denying it. But the right message, presented to the right audience, using the proven methods honed throughout the history of advertising, drive sales. Everything else is just pretty.
So if you're a small business, developing your first advertising campaign, be a student of the craft. You're about to spend a good chunk of money on media that might not work, on creative that "looks killer" but doesn't sell, or on offers that don't achieve your goals.
'Art' isn't necessary to drive sales. 'Science' is.
Wednesday
How many customers do you need?
Think about how many transactions you need per week in order to be successful. For the sake of argument, let's say 2,000 transactions per week.
Now multiply that by 52 weeks - 104,000. This is the total number of transactions you will need for the year.
The next step is to estimate your customer frequency of visit. BE CAREFUL: this is where most restaurants falter. MOST owners assign a higher frequency of visit than is actually the case. As a result, they underestimate the number of customers they really have.
Let's say your average frequency of visit is once every two weeks, 26 visits per year. In this case, you have 4,000 customers.
If average frequency is closer to 3 weeks, 17 visits per year, your total number of unique customers is more like 6117.
If the visit is every 4 weeks, 13 visits per year, you have about 8,000 customers.
Now, what happens if we add 2 visits per year for each customer (let's assume an average ticket of $10 to keep the math simple):
4,000 x 2 = 8,000 x $10 = $80,000 per year
6,117 x 2 = 12,234 x $10 = $120,234 per year
8,000 x 2 = 16,000 x $10 = $160,000 per year
All of this can be accomplished by marketing your restaurant in creative ways, with no advertising dollars.
Now multiply that by 52 weeks - 104,000. This is the total number of transactions you will need for the year.
The next step is to estimate your customer frequency of visit. BE CAREFUL: this is where most restaurants falter. MOST owners assign a higher frequency of visit than is actually the case. As a result, they underestimate the number of customers they really have.
Let's say your average frequency of visit is once every two weeks, 26 visits per year. In this case, you have 4,000 customers.
If average frequency is closer to 3 weeks, 17 visits per year, your total number of unique customers is more like 6117.
If the visit is every 4 weeks, 13 visits per year, you have about 8,000 customers.
Now, what happens if we add 2 visits per year for each customer (let's assume an average ticket of $10 to keep the math simple):
4,000 x 2 = 8,000 x $10 = $80,000 per year
6,117 x 2 = 12,234 x $10 = $120,234 per year
8,000 x 2 = 16,000 x $10 = $160,000 per year
All of this can be accomplished by marketing your restaurant in creative ways, with no advertising dollars.
Tuesday
6 things you CAN control
Enough about the economy, and things we can't control, let's focus on those things we can control.
1. Customer Experience. One in 10 Americans say they will have a bad experience that will make them never come back. People are something like 7 times more likely to spread negative word of mouth than positive word of mouth.
- Dependable, friendly customer service can help eliminate a 10% erosion of your customer base.
2. GREAT Customer Experience. Turn the negative into a positive. As diners become more discerning, they're more likely to visit places where their business is appreciated, where they KNOW they'll have a good meal and a good time.
- Walk the tables. Be overly friendly. Sample in the dining room. Make personal connections to your guests.
3. Lock Down Share of Wallet. People aren't eating out as often, but you have a chance to talk to them every time they visit you. Make sure to invite them back.
- Incentivize your customers to come back soon. Bounce-back with a one week expiration date, incentivize other dayparts.
4. Be Involved. Life goes on in your community, be involved in it. Have conversations with customers outside of your 4 walls about things that are important to them. Support them, they'll support you.
5. Advertise. There isn't as much chatter going on these days because most businesses have cut back on advertising. Your business will likely increase, or at lesat remain constant, with an increase in marketing activity. Set a base of consistent advertising.
6. Surround Your Customers. Augment your ads with the 7 Core Competencies. The increased frequency of message, when others aren't talking as much, keeps you top of mind.
1. Customer Experience. One in 10 Americans say they will have a bad experience that will make them never come back. People are something like 7 times more likely to spread negative word of mouth than positive word of mouth.
- Dependable, friendly customer service can help eliminate a 10% erosion of your customer base.
2. GREAT Customer Experience. Turn the negative into a positive. As diners become more discerning, they're more likely to visit places where their business is appreciated, where they KNOW they'll have a good meal and a good time.
- Walk the tables. Be overly friendly. Sample in the dining room. Make personal connections to your guests.
3. Lock Down Share of Wallet. People aren't eating out as often, but you have a chance to talk to them every time they visit you. Make sure to invite them back.
- Incentivize your customers to come back soon. Bounce-back with a one week expiration date, incentivize other dayparts.
4. Be Involved. Life goes on in your community, be involved in it. Have conversations with customers outside of your 4 walls about things that are important to them. Support them, they'll support you.
5. Advertise. There isn't as much chatter going on these days because most businesses have cut back on advertising. Your business will likely increase, or at lesat remain constant, with an increase in marketing activity. Set a base of consistent advertising.
6. Surround Your Customers. Augment your ads with the 7 Core Competencies. The increased frequency of message, when others aren't talking as much, keeps you top of mind.
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