Remove the Strings! How to Build Guest Loyalty with

Email MarketingJoe Gabriel

Fishbowl

Want a copy of presentation?

Joe Gabrieljgabriel@fishbowl.comwww.fishbowl.com/nra

Twitter/@fishbowljoeFacebook/@fishbowljoe

Is Your Online Marketing Strategy Working?

What IS Guest Loyalty?

Loyalty Marketing: Beyond the Card

What Is It? Loyalty is a feeling of

attachment that customers have towards a brand.

Loyalty Marketing focuses on strengthening brand attachment to influence consumer behavior…one member at a time.

Why Do It? The goal of Loyalty

Marketing is to maximize the Lifetime Value of each customer through increased member frequency, spend and retention.

Loyalty Works

57% of adults said they would be more likely to visit a restaurant that offered a customer loyalty program rather than one that did not.

Source: National Restaurant Association

80% of your sales come from 20% of your customers

Question?

What is the one thing you need to…

– Make an online reservation?– Set up a Facebook,

Foursquare or Twitter account?

– Write a review on Yelp?– Place an online order?

An Email Address!

Email is Big

Source: Visible Gains

Growing Bigger

How your guests want to hear from you

Big ROI with Email

Source: Direct Marketing Association, The Power of Direct Marketing, 2011-2012

Email is Permissive

http://www.fishbowl.com/offer/index.html

Set Up Your Email Account

Easy with Single Log-in Management Tools

Manage from one place

• In Store• Paper Sign Up Slips• Staff Engagement & Incentives• POP• To-Go Bags• Window Clings• Placemats• Staff Buttons

• Online • Website Join Form• Social Media Sites• Contests/Sweepstakes• Forward to a Friend• Online Reservations & Ordering

• Other Sources• Public & Charity Events• Mobile Phone

Build Your Email List

4 Walls Focus – Easy Goals

X

Just 1 sign-up slip per server

X

30 days

300 New Members per

Month

1 location (3,600/yr)

How it can all add up!

Elements of a successful email 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

“But I hate to discount...”

Sorry, you have to remove the strings

Strings you say?Strings turn Gifts into

Coupons

Restrictions encourage the guest to NOT redeem

Thank You= Loyalty

And thank your guests 2-3X per year

Case StudyWelcome Gift

Free Menu Item AVG Cost of Gift $9.50 57 % Open Rate 12K Member List

AVG Check- $55

Birthday Promo 13,563 members No-strings attached

Birthday Gift 40% redemption rates

(versus 8-12% Fishbowl average)

Results: $200,000 in directly attributable sales

…plus great goodwill and lots of new diners

Case Study

Case Study

FREE Birthday Pizza 50% Open Rate No strings attached Built list over 12K46% Redemption Rate

Other Loyalty Campaign Ideas

• Belated Birthday

• Thank You for Dining

• Wedding Anniversary

• “We Miss You”

Email Customer Appreciation PromoCase Studyoverwood (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…

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/yrloyalty gift redemptions 600 600additional undiscounted visits 0 2,000total “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

Questions?

Joe GabrielFishbowl

jgabriel@fishbowl.comwww.fishbowl.com/nraTwitter/@fishbowljoe

Facebook/@fishbowljoe

THANK YOU!