#1 Easiest way to boost restaurant sales21 Sep 2015, by Kamron Karington in Loyalty, Marketing
It's not sexy but it gets the job done. Here it is... Stop chasing the smallest opportunity.
Problem: Increasing sales through customer acquisition is the most expensive and least productive method for driving profits.
It is a restaurant’s own customers who are more likely to visit and spend money, yet most owners blow 90% or more of their marketing dollars in an effort to drive “new” traffic, which in most cases represents less than 10% of a restaurants growth opportunity.
Solution: Significant sales increases are more easily obtained through staying top of mind with current customers and giving them frequent reasons to return.
Example: A customer visits your restaurant twice a month. But since you aren't staying in touch with them... they are continually influenced by other advertising and offers, so they are dining in other restaurants as well.
And each time they dine elsewhere... you are at greater risk of losing them forever.
Simple math reveals that just one more visit per month from a "twice-a-month" customer is a 50% spending increase (2+1=3).
Imagine if you had a way to reach out and provide thousands of customers with continual and repeated reasons to visit and spend money with you.
Get customers enrolled in your loyalty program (or at the very least - an email club)... and be the "go-to" choice when they're ready to spend.
Andy & Katy Dell bought Papa Kelsey’s Pizza in Mesa, AZ in Nov, 2011. Sales were stagnant and the original owner was ready to retire.
They chose Repeat Returns as their loyalty solution.
Here's what happened over the next three years.
- Sales increased $453,000 ($8,711/wk)
- Loyalty members order 87% more than non-members
- Members spend 84% more than non-members
Sales are even higher today.
Loyalty programs have many benefits:
- It's a tie-breaker when someone is making a dining decision (more visits)
- Members are less price sensitive, and spend more to earn rewards (higher tickets)
- Members are more forgiving of occasional screw-ups because they are invested in the program with points and rewards (longer retention)
The list goes on, but this should be enough to make the point. A loyalty program increases sales almost immediately.
And better yet, instead of constant discounts, customers earn rewards after spending money with you.
Choose a SMART Loyalty program and you get the added benefit of data-driven marketing automation to maximize wallet-share, visits and customer lifetime value.
Your bank account doesn't really care where the money comes from... as long as it comes in.