AUTOMATING RESTAURANT MARKETING ACTIVITIES
By Janice Lucarelli
Tuesday, September 29, 2009 
As times get tougher restaurants are searching for cost-effective marketing options to build awareness of their brand and develop a loyal client base. While splashy television and radio spots are an attractive option, they typically only produce a short-term spike in sales and are costly to execute. Operators can, however, leverage their efforts in more creative ways by utilizing advances in technology and harnessing the power of the Internet to stay connected with guests.
The most valuable resource to any restaurant is a customer relationship management (CRM) database of its regular and loyal clients. Increasing customer loyalty is the one marketing goal that has the greatest potential to drive consistent business and improve profits. Frequent guests typically account for 15 per cent of a restaurant’s customer base but contribute approximately one-third of the total revenue. Researchers at Harvard have found that by increasing frequency of visits by just five per cent, profits will grow by between 25 and 125 per cent.
Building a guest list is easily done by collecting client data through various “opt-in” programs including:
- In-store: Comment cards, loyalty programs, contests, surveys and team sponsorships.
- Online: Website sign-ups, online surveys and online reservation systems.
- Virally: Social media sites, including Facebook and Twitter.
- Mobile: Cell phone marketing and cardless mobile loyalty programs.
As the client list is building, data can be stored securely online and segregated into various target groups. Collect data that will be useful for future marketing campaigns, including e-mail addresses, cell phone numbers, birthdays and anniversary dates. The data and history provide a great roadmap of the evolution of each customer relationship. The more information acquired over time, the better equipped the restaurant is to stay close to its customers.
Automated e-mail campaigns for birthdays, anniversaries and monthly newsletters are easy to execute and an inexpensive way to stay connected. A good e-mail provider will be able to automatically deploy campaigns based on specific date parameters and have back end reporting to track results. Branded e-cards for birthdays and anniversaries can be stored digitally in an online marketing library and personalized by pulling the guest information from the database. Cards should be sent a minimum of 30 days in advance along with an incentive to visit the restaurant. In most cases, people celebrate special occasions with friends and family, so this is a great way to draw larger groups and build the pool of regular clients.
For many restaurants e-newsletters are the primary way of promoting their business. Content often includes information on new menu features, community events, fundraisers, recipe ideas and coupons. A good restaurant software program will allow single or multi-unit concepts to design dynamic pre-built templates. This permits each store location to customize content and images without compromising the look and feel of the brand. All e-newsletters should include multiple hyperlinks to drive customers back to the restaurant’s corporate website for additional information or to make an online reservation. There should be a “forward to a friend” option and downloadable files for sponsorship applications or recipe ideas. E-mail newsletters are a great way of reminding customers about products and services.
Building a connection with regular customers is desirable because they will visit more often, typically spend more money and spread the word to friends and family about the high quality of service and products they receive. Given their power, developing a loyal client list and target marketing regular customers is the best resource to build a successful restaurant. As guests continue to enjoy positive experiences both in the restaurant and through consistent contact they will become lifelong customers and the restaurant’s greatest advocates.
Janice Lucarelli is the director of marketing and corporate communications for GuestEngine Inc. GuestEngine is an online restaurant marketing tool that integrates the best of all restaurant marketing practices into one platform. It includes CRM data collection and storage, social media marketing and results tracking, loyalty programs, automated e-mail and direct mail campaigns, online surveys and mobile marketing. For more information contact Janice at 1.888.801.1888 ext. 227 or janicel@guestengine.com.
