Add this to Your List of Restaurant Marketing Strategies24 Sep 2019, by Kamron in Sales, Restaurant Marketing
If you could generate $1,000 in sales for just $3 and do it reliably, would you want to learn how to do it?
If the answer is yes, then watch this video, or continue reading below, to learn the restaurant marketing strategy I used to grow my restaurant sales from $12,000 a month to $149,000 a month in about three years.
Of the restaurant marketing strategies I tried in my restaurant, the one I explain here was not an overnight fix but it was a game changer.
Whenever two people get together to complete a transaction, one of them is taking all of the risk, and it's usually the person spending the money. That risk, no matter how small, creates hesitation. There is a point of friction there. So when you reverse that situation and you take that risk, you eliminate that friction and make it easier for people to choose your business over your competitors.
Let's take you through it. Pretend you're choosing between two restaurants for dinner. You walk up to one and there is a sign on the door that says "No Shoes, No Shirt, No Service, No Refunds." That probably won't sit well with you, so you try to the other restaurant.
On the second restaurant's door is a sign that says, "You must be absolutely thrilled with your meal or we will refund your money - every penny!"
Which restaurant are you going to choose?
Let me show how you how I put this into place in my pizza restaurant. I put my guarantee on everything including my menu, mailers, radio ads and door hangers. I even put it on my Yellow Pages ad (remember those!).
Is this scaring you? Are you worried about my profitability, that I'm going to be giving back every dollar I received from a customer?
Let's review my income statement. In the first quarter of the year, I had $391,000. Remember at the beginning when I said you could generate $1,000 for $3? Look at my refund rate. It's $140.75. That's with my guarantee on every marketing piece.
I estimated my refund rate would be 3% because that's the screw-up rate. That's messed up orders, pizzas delivered cold, even delivered to wrong place. If you look at 3% of that $391,000, we should have refunded $11,734. But it was only $141?
What does this tell you? It tells you people are not going to take advantage of you. Sure, you'll have a couple people. But guaranteeing people they have a way to get a refund if they invest in something that isn't good helps them overcome that point of friction, that hesitation.
You already have a guarantee. If you make a wrong order, you probably already will give refunds to people. That's what ethical restaurant owners do. All I'm suggesting is instead of making people ask, you raise yourself up, leave your competitors in the dust and make it easy for your customers to choose you by putting your guarantee on everything. Wear that guarantee as a badge of honor.
If you would like to learn more about increasing restaurant sales, driving traffic, maximizing a marketing budget or anything else related to restaurant marketing, visit my YouTube channel.
You can also do something right now to increase your sales - download this free report to learn the easiest way to increase your restaurant's sales.