Email Marketing for Restaurants- Attract, Engage & Thrive

Fishbowl Cocktail Facts

• 11 years old, 130+ employees- Alexandria, VA based

• The leading provider of on-demand marketing software and services to the restaurant industry

• Serving over 40,000 restaurant locations

• Managing an opt-in member database of over 70 million guests

• More than 1.5 billion email messages distributed annually

• Technology and services designed specifically for the restaurant industry

• Chosen partner of leading organizations in the restaurant industry…

Agenda

• Online Landscape

• Elements of a Successful Email Program

• Tracking & Measuring Results

• How to Manage your Program

• Integrating Social Media

Marketing’s Evolution…

TraditionalMarketing

– Telemarketing– Direct mail– Print ads

– TV Commercials– Radio Ads

– SPAM

Online Marketing

–SEO / SEM–Permission based Email

–Social Media–RSS Feeds

–Review sites & Directories

–Mobile Interaction

Consumer Trends

US consumers now spend more hours online than watching TV or any other leisure activity

Confusing Online Landscape

?!!!

…Bit Less Confusing

Acquisition

Engagement

…Lot Less Confusing

Engagment = 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

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

Why Email? Still the #1 tool to reach customers

• More than 204,000,000 Americans use email regularly-Pew Internet & American Life Project & Google Public Data (April 2010)

• 86% have given their email to a retailer

• $43.52 returned for every dollar spent in 2009-Direct Marketing Association (2009)

• Email IS Mobile

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

- Marketing Sherpa (2010)

• “41 percent of consumers surveyed by the NRA say they choose new restaurants because of e-mail promotions... ”

-National Restaurant Association (2010)

And #1 way that (most) people share online

Email Best Practices

• How do I build a list? • What kind of messages should I send? • How often? • What works best? • How do I measure results, ROI? • How do I manage all of this!!!!

Must-do’s In-store Website Facebook

Other Sources? Reservations (OpenTable)

? Online ordering

? Gift card registration

? Guest satisfaction services

? Offline media

? Community events

Where To Grow Your Lists

How To Grow Your Lists

7 Key Steps1. 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

How often should I message? What types should I send?

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

Loyalty is foundation (and drives ROI)

Typical 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

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

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

(-) 40% direct costs (9,600) (41,600)

(=) Added Profit before program costs $14,400 $ 62,400

Birthday Promo

• 13,563 members in database

• 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

Birthday Gift Case Study

Brand & Community Marketing (How to)

Step 1, pick a theme

• Restaurant News

• Last Minute Special Events

• Theme Dinners

• Kids-Related

• In-Store Events (music, trivia)

• New Menu / Recipes

• Community Related Events

• Gift Card Sales

• Viral Marketing

• Holiday / Seasonal Events

Ex: Fathers Day

Step 2: Come up with an idea to match the theme Theme: Fathers DayIdea: Old Spice--the ultimate gift

In store:

• Fun Dad Quiz for kids

• $5 Bounceback for Dad

• Plus bottle of Old Spice

Reservation link (make it easy!)

Step 3. Leverage the idea using other media

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…

Reservations + email is a no-brainer

Integrate your email program with local online reservation solutions to increase recognition, results, measurability– “Click here to book your birthday dinner

—and gift from us” – Create other promotions for holidays,

slow dayparts

Seamless software integration with “Reserve Now” button

EVENTValentine’s Day lunch and dinner special menusPromoted with 2 emails to list of 3,905 members. Included link to reserve online

RESULTS23% open rate, 149 click-through’s Sold out entire restaurant

Special Menus, Events

Basics: Kid Friendly Promotions

Basics: Promote Gift Cards

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Basics: Charity & Community

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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

Offbeat Ideas: (Create Your Own Promotion)

Key Takeaway #2

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

– is a “Thank You” gift– Uses humor– Promotes a cause or event

Offer with Humor

SMOOCH YOUR POOCHStop 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.

Cause Marketing Case Study

• Subject Line: Helping Others Never Tasted So Good

• Target Audience: 78,141• Open Rate: 41%• Click Throughs: 3,171

RESULT: Sales company-wide upover 4% for the week

Cause Marketing

Weather Offer

One day, Two locations, 250 covers, $6,250 in sales35

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Weather: Info and Accolades

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.

How to Measure Results

Integrating Facebook with your Email

3 “must-do’s”

1. Convert Facebook fans into email club members 2. Encourage (and enable) sharing within your emails3. Publish campaigns to Facebook (and other media)

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#1-Facebook Email Join Form

#2-Turn Your Customers into Promoters

Social Sharing Links:A simple click of the Facebook sharing button,inserted into your restaurant’s emails, andrecipients can promote your restaurant’smessages to their friends across the Facebook network. The average social media user has nearly 200 friends with which to share your

restaurant’s messages

Facebook Stats:The average Facebook user has 120 “friends,” and their communications pack the power of a personal referral –not advertising clutter.

#3-Publish to Facebook (and other media)

Closing Thoughts…

Do…• Get started• Make time• Involve staff• Keep score

Don’t be…

• Intrusive

• Slapdash

• Cheap

• Boring

Questions?