Effective
Restaurant Marketing and Promotion
Three Ways To
Increase a Restaurant's Revenue
- Raise prices
- Increase customer quantity (gain
new customers through advertising
and increase repeat purchases
while retaining existing
customers)
- Increase the average ticket with
add-on selling and upselling
(selling, marketing and
product merchandising)
Regular and
Effective Advertising
Regular advertising
and promotion is expensive and
absolutely necessary to build a
restaurant's business. Point of
Success provides reports that analyze
every promotional activity:
- Coupon redemptions
- New customers generated by a
promotion
- Lifetime value of customers by
promotional activity
- Analysis of orders (average
order size, total orders) by
promotional activity
Continuing
Effective Advertising and Promotion
With Point of
Success it's easy to decide which
promotional activities, offers or
publications generate the most
financial benefit. Informative reports
support every marketing spending
decision with facts rather than
guesses.
Create
a list of currently available coupons,
discounts and promotions. Track
customer response, redemption details
and effectiveness of every promotion.
It's Easier to
Keep a Customer than Get a New
Customer
It is a commonly
held belief that a business will spend
five times more to get a new customer
than it needs to spend to get
comparable revenue from an existing
customer. Point of Success gives a
restaurant the information it needs to
continually communicate with existing
customers, encouraging them to order
more and order more frequently .
Let me
make this clear: people who have
ordered from you before are five times
more likely to order again than a
non-customer.
Lifetime Value
The value of a new
customer is important, but the
lifetime value of an existing customer
is even more important. Many
restaurants expend a great deal of
time and money to get new customers to
the exclusion of improving
relationships with customers they
already have.
If a restaurant
spends $500 to get 30 new
customers who each place a $15 order,
the total new revenue will
almost meet the cost of the
advertising. The problem is that if
25% of these new customers order
again, these new customers are profitable
only if each retained new customer
orders three or more times.
Balancing new customer marketing
activities with offers directed
to existing customers is vital to
a restaurant's success. Restaurants
using Point of Success software know
their customers and their buying
habits, giving them the power to
emphasize existing customers in their
business-building activities.
Consistent,
Reliable Source of Orders
Every restaurant
manager recognizes their customers who
order consistently. They know that the
majority of their orders every day are
placed by existing customers. Existing
customers are the most consistent,
reliable source of regular business.
Make Good
Customers Great Customers
Point of Success
pinpoints good customers so you can
communicate with them more frequently
and more effectively! Identify
customers by their longevity, their
order frequency, their lifetime value
and more. A good customer is worth the
extra care it takes to keep them
coming back again and again .
Entering
discounts and tracking promotions is
easier with Point of Success' coupon
and discount tracking features. Each
coupon or discount is created with
valid days, dates and times, how to
calculate the discount, and the items
to which the discount applies.
Add-On Order Promotions
Point of Success
makes it easy for a restaurant to
encourage add-on of extra items with
every order. When offering incentives
to servers or order taking staff,
sales achievements can be tracked for
add-on items.
Customer
Retention and Satisfaction
Restaurant managers
are sometimes unaware that customer
relationships are critical to a
successful restaurant. The loss of a
dissatisfied customer is a huge cost.
- On average, 50% of dissatisfied
customers will complain to a
front-line employee
- Only 1% to 5% of dissatisfied
customers will escalate their
complaint to a manager
- 91% of dissatisfied customers
will not buy again from a company
that displeased them
- Complaining customers whose
complaints are satisfied are
significantly more loyal than
customers who have never been
dissatisfied
When a customer
disappears the most controllable
cause is dissatisfaction. Contacting
an inactive customer repeatedly and
with increasingly attractive offers to
become active again is the most
effective marketing expenditure a
restaurant can make.
When Active
Customers Become Inactive
Point of Success
offers reports detailing which
previously active customers have not
ordered in a specific period of time .
This information permits contacting of
customers with coupons and other
enticements to order again. When
active customers stay inactive even
though they have been offered generous
incentives, it's time for a manager to
contact the customer personally.
Early Warning of
Food Quality or Staff Problems
Inactive customer
follow-up gives a manager first-hand
experience with customer complaints.
An informed manager can easily judge
the quality of their restaurant's
food and service, then make changes to
keep customers happy. Generous
problem-solving attention from a
manager is often all that's needed to
transform a dissatisfied customer into
a raving fan.
Managers Stay
Involved
Keeping managers
informed and involved is the best way
to improve a restaurant's success.
Busy managers spending time operating
the restaurant are far less
effective than managers who are in
touch with their customers!
