Internal Marketing for Restaurants

Marketing To Your Existing Customers

As you should know, your most valuable customer is an existing customer. They are already convinced on what you do.

As noted elsewhere, it costs 6 to 7 times more to get a new customer to come through your door than it does to get an existing customer to buy from you again.

In addition, it takes at least three visits before you can consider a customer to be “anchored” to your restaurant. [link to video]

It makes complete sense then to take advantage of the fact that you already have customers that like, trust, and love your restaurant. If you can market to them via the most effective marketing channels, namely text message marketing (98% response rate), email marketing (22% open rate), and now even Facebook Messenger marketing (90+% open rate), you can generate business on demand.

Have a typically slower day or period? Give your customers a reason to come in.

However, to do this requires that you have a way to communicate with them, and that requires that you collect their information in order to send them an offer that will get them in the door. When you build a list of your current customers, you are building an ATM you can access whenever you want.

THE MONEY IS IN THE LIST

One of the main mantras of marketing in general–and online marketing specifically—is that once you build a list of potential customers you can market to them ongoing and whenever you want. The money truly IS in the list.

[Scroll down for a scenario of how the number might work for an average restaurant.]

In the pre-digital age (before the internet), companies would spend a lot of money purchasing lists of people who might be interested in their product or services. Telemarketers or mass-mailer-marketers used these lists to try to bring those potential customers to their company instead of their competitors’.

In today’s digital age, lists can be generated online or internally (i.e. within your physical restaurant), and there are myriad ways to accomplish this list-building phase. Visit our solutions page for some examples.

Once this list is built, you have a database of people you can market to whenever you want.

You could offer ‘one-off’ specials, weekly special notifications, holiday specials, events, etc.

Your creativity will come into play here, as you can modify offers based on how well they have performed in the past.

In summary, it is our hope that you have seen the goldmine of value waiting for you to tap into.

If you neglect this opportunity, you truly are leaving money on the table.

Contact us today if you’d like us to help you set a system to achieve this type of revenue growth.

Example Scenario for an Average Restaurant

We’ll use generic numbers for this example but you can plug in your own numbers to see how it applies to your restaurant’s particular situation (or use our calculator via the link below).

Let’s say you have 1000 customers who you would consider “regulars”, i.e. they’ve visited maybe three or more times and/or come in on average perhaps once a month at this point.

We’ll assume for this example that they come in once a month on average.
Now let’s say you could capture the information of 50% – 75% of them. [email, cell-phone number, or via Facebook Messenger]

So now you send this group an offer to get them in the door and perhaps 25% of those take you up on your offer.

If your average ticket transaction is $50.00 (just as an example and for easy math), and you have a compelling offer, can you predict the value this would bring?

Let’s do the math for these numbers.

1000 “regulars” x 75% = 750 people on your list.

25% respond to your offer = 187 people coming through your door.

187 people at an average transaction of $50.00 = $9,350.00–and we’re not counting friends and family they may bring with them.

(Note: Here we’re not taking into consideration food costs but in many instances that figure can be factored into the total ROI.)

So if you can get your average regular customer who normally comes in once a month to come in just one more time per month, you’ve brought in an additional $9,350.00 in revenue for the month or $112,200.00 for the year.

Not too bad, right?

Can you see the value in that?

But maybe you’re saying “That’s crazy, you can’t generate those types of numbers”

OK, then let’s get much more conservative with our numbers.

Let’s say we only captured 50% of our regular customers’ data.

And let’s say only 8% respond to your offer.

1000 “regulars” x 50% = 500 people on your list.

8% respond to your offer = 40 people coming through your door.

40 people at an average transaction of $50.00 = $2,000.00 additional revenue per month or $24,000.00 per year.

Now what if you did this twice per month?……….

Even at these conservative numbers, would you see any value in that?
You can plug in your own numbers into these equations to see how your own revenue would grow.

[Or Click here to use our own calculator with your numbers.]

These are examples of the increases in revenue your restaurant could generate when implementing an intelligent and targeted approach to creating and marketing to a list of your “regular” customers.

If you combine this with one of our approaches to bringing in new clients, you’ll be a revenue-generating machine.

Contact us today if you’d like us to help you set a system to achieve this type of revenue growth.