fishbowl florida restaurant & lodging february 2011 presentation

Email Marketing-affordable, effective, easy

About Fishbowl

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Confusing Online Landscape

?!!!

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Source: Glendale CA Public Library

Good news: Shift from mass-media to customer engagement takes us back to what we’re already good at---and always have been

…Bit Less Confusing

Acquisition

Retention

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…Lot Less Confusing

Retention = Customer Marketing

Two basic steps:

1. Build a customer database across all media

2. Engage with them: • Listen to them• Share with them• Thank them

“Just like a table visit”

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Let your guests engage the way they want

DIRECTORIES

RESTAURANTS WEBSITES

Text SMS/MMS

Email

• How’s this for a tax deduction---take $10.40 off your check, April 15th only! Alcohol & gratuity not incl, min purchase of $20 required. One-time offer. Mention you read this on Facebook!

Facebook• Tax day fatigue?

Come in 4/15 for $10.40 off a check of $20 or more. Restrictions apply. Just show your Tweet to your server!

Tweet

• Customer "checks" in with your restaurant, finds out about promotion and this is broadcast to their social network (Facebook, Twitter) which in turn advertises your venue to his or her friends, gaining exposure to even more people.

Foursquare

Social= Viral = Word of Mouth

Email is #1 tool to reach customers

• More than 204 Million Americans use email regularly, making it the top online activity.

• Email marketing was estimated to generate $43.52 for every dollar spent in 2009.

• 89% of retailers cited email as most successful marketing tactic overall.

• 75% of daily social media users said email is still the best way for companies to communicate with them.

- Forrester Research and Shop.org (2009)

- MarketingSherpa (2010)

- Direct Marketing Association (2009)

- Pew Internet & American Life Project & Google Public Data (April 2010)

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Common Questions

• How do I build a list?

• What kind of messages should I send?

• How often?

• What works best?

• How do I measure results and track ROI?

• How do I manage all of this!!!!

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How to Build a List-Part 1

Must-do’s

In-store

Website

Facebook

Other Sources

? Reservations (OpenTable)

? Online ordering

? Gift card registration

? Guest satisfaction services

? Offline media

? Community events

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How to Build a List-Part 2

7 Key Steps

1. Design and set-up your Welcome and Birthday offers

Be generous, BOGO or better (“WIIFM” )

2. Print sign-up slips..keep them simple!

3. Add online join form to your web-site and Facebook page

4. Promote your eclub EVERYWHERE

5. Set a goal , break it down

2000 = 166 per month = 6 per day = < 1 per server per shift!

6. Train servers, hosts (use carrots and sticks)

7. Keep score, share results with staff

Elements of a successful program

Mix of 3 elements: Brand, Community, Loyalty

2-3 Loyalty “gifts” annually to drive enrollment and baseline ROI (ex: BOGO entrée gifts on Welcome, Birthday, Anniversary)

12-18 brand and community messages per year

1-2 other “Surprise” offers, usually one-day offers

= Total of 18-24 communications per year

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Ideas are also critical, especially in a social world

DIRECTORIES

RESTAURANTS WEBSITES

Text SMS/MMS

Start with a general theme

1. Loyalty gifts

2. Holiday/Seasonal events

3. Signature events, PR

4. Weather

5. Charity/Community

6. Wine, Beer, Food menu nights

7. Vendor sponsored events

8. Contests & Viral campaigns

9. Sports events

10. Kids-related

11. Live music

12. New menu / Recipes

13. Gift card sales

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Then add a twist

CASE STUDY

overwood (wood-fired american kitchen) Father’s day at Overwood offers Dad a classic gift (we’re not telling) along with a $5 gift Certificate for his next visit! Kids---take our “Dad census” and win a free dessert…Special Father’s Day menu available all day!

ROI:Sales up $1,546 (17%) Cost of $83 (+ Old Spice)Plus bouncebacks…

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Key takeaway #1

Develop and emphasize your brand personality

(aka don’t be boring)

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Offbeat Ideas: (Create Your Own Promotion)

Chorizo Fresh Mex

“420” Promotion

Five year old one-day promotion. Previously used print and direct mail support. Used email for first time in 2010.

Result: Line at the door starting at 10:30 am.

“Never seen anything like this”

Frank M, Owner

More Off-Beat

SMOOCH YOUR POOCH

Stop in any Wednesday in April with your dog to get a free large cheese pizza.

No Dog? Bring your significant other pet*

You may be required to kiss that animal on the lips to prove that significant other pet is really yours.

More Offbeat

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Key Takeaway #2

Offer isn’t perceived as a coupon when it...

1. is a “Thank You” gift

2. Uses humor

3. Promotes a cause

Loyalty Gifts…Show The Love

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Birthday Gift

Birthday Promo

• 13,563 members in database

• No-strings attached Birthday Gift

• 40% redemption rates (versus 8-12% Fishbowl average)

• 5400 X $40 = $216,000 in directly attributable sales

• …plus great goodwill and lots of new diners

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Weather Offer

One day, Two locations, 250 covers, $6,250 in sales

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Key Takeaway #3

You don’t always need an offer.

Charity & Community

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Weather: Info and Accolades

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Special Menus, Tastings

Event:

Belgium Style Beer Dinner

Promoted by email only.

Result:

Sold out 65 seats with a 20-person wait list. Scheduled a second date for event which also sold out.

Holiday reminders

EVENT

• Valentine’s Day lunch and dinner special menus

• Promoted with 2 emails to list of 3,905 members.

• Included link to reserve online

RESULTS

• 23% open rate, 149 click-throughs

• Sold out entire restaurant

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Promote Gift Cards

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Charity & Community

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How to Measure Results

1. List Size (2000 in first year)

2. List growth (4-5% per month, 50% annually)

3. Open rates (25-50%)

4. Redemption rates for offers (8-12%)

5. Attendance & sales from non-offer events

6. ROI: all-in program-related sales and costs

7. Customer feedback

8. Staff feedback

All-In Per Store ROI Assumptions:

Table-service, $16 PPA x 2.5 guests = $ 40 average check per table

2,000 list members per store; 3 loyalty gifts (Welcome/Anniversary, B-day, Survey)

$ 9 avg. discount, 10% average redemption, 40% direct costs, 20% cannibalization

per store, full year: loyalty gifts only +1 visit/yr

loyalty gift redemptions 600 600

additional undiscounted visits 0 2,000

total “program” visits 600 2,600

(x) check average = Added Sales $ 24,000 $ 104,000

(-) 20% cannibalization on offers (4,800) (4,800)

(=) Net incremental sales 19,200 99,200

(-) All discounts (600 x $ 9) (5,400) (5,400)

(-) 40% direct costs (on incremental sales) (7,680) (39,680)

(=) Added Profit before program costs $ 6,120 $ 54,120

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How To Manage Your Email Program

• Set up your email account

• Start with an “Inventory” of current activities to promote

• Build an “Ideas” file of new things to try

• Set aside 60-90 minutes every week to work on your guest marketing

√ Plan for 1 to 2 promotions per month

√ Compose and send emails (post to Facebook,Twitter, or SMS too)

√ Respond to guest comments

√ Track results, communicate to staff

• Can’t find the time? Hire someone. It’s worth it.

* $54,120 / 78 hours = $693 an hour!

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Closing Thoughts…

Do…

• Get started

• Make time

• Involve staff

• Keep score

Don’t be…

• Intrusive

• Slapdash

• Cheap

• Boring

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Question and Answer

Thank You!

Scott Shaw

scotts@fishbowl.com

Mary Fisher (Florida)

mfisher@fishbowl.com

727.482.8530