Heather: I have
noticed you stress testing and
measuring and ROI I mean immediate return in the next week or so not in months.
Tracy: That’s the
only way to do it! So here it is we gathered our data loaded it into a CRM
customer relationship management tool like
Outstand, we love using their
website. After looking at the calendar we selected the first business day of
the month to begin our campaign. We also looked at the slowest days of the week
to take that into consideration for this promotion. So your card arrives in the
mail and unlike regular mail no one sets an obvious card down when it is around
their birthday right? No, they open it and it reads “Happy 30
th
birthday Heather come in on any Wednesday night in the month of February and
enjoy one of these offers just for you.”
Heather: Wow,
that would definitely work for me!
Tracy: Of course
it would, it works for almost everyone. We run this and the anniversary one hand
in hand typically. The obvious difference is we have the cards mailed in the
month of the anniversary listed and include a much more detailed promotion.
Something like the now famous Giorgio letters, which if anyone would like to
see those again they can email me at
Tracy@MarketingSoldier.Com
include their physical address and I will mail them out.
Tracy: It is a
third party site where you plug in all your data and you can send out and track
really nice looking emails and also send physical mail all from your computer.
I had to put together a tutorial on YouTube since I reference it so often I got
tired of so many calls and emails about setting it up!
Heather: That’s
because you rock.
Tracy: Thanks,
another thing that “grinds my gears” as Peter Griffin likes to say is when I go
to consult with a business and they have no idea what their average ticket is.
So frustrating.
Heather: Can you
elaborate on that point?
Tracy: Sure, when
you do the birthday club promo we have a minimum of 3000 names we pull for our
clients. Divide that by 12 months and you get 250 people (I am just using even
numbers to explain this easier.) 250 birthday cards go out with special offers
during the first week of the month and let’s say for whatever reason we only
manage to get 1/3 of the recipients to respond to us. Well that is still 83 new
customers who come in. Since no one eats alone on their special day our
research has shown that a birthday dinner for two with drinks etc. averages
$136.86. Let’s say it is a particularly slow month and we only had 1 out of
every 6 people who got our card come in. That is 42 people with at least one
other person come in for dinner. We generated $5,748.12 on a day that was
normally slow. Now let’s forecast a slow year and multiply this by 12 and you
made $68,977.44 with a simple direct response marketing technique. In this
scenario that is still a significant amount over and above what we charged them
and what the program cost.
Heather: Even
downplaying these numbers it still sounds so impressive!
Tracy: That’s is
why this is such a no brainer. By the way our average has been a 48.7% response
rate. Crazy, huh? I wanted to quickly point out that any restaurant owner
nationwide can call us at (888) 663-9491 and we can pull that consumer data for
them.
Heather: Right! I
was making some notes on those numbers on your original quote 1/3 or 83 people
respond and come in to dine with an average ticket of $136.86 is a whopping
$11,359.38 from 4 nights that used to be considered slow. Let’s multiply that
by 12, $136,312.56 wow, just wow.
Tracy: When you
break it down like that it really becomes crystal clear that businesses can’t afford
to not have this system in place. It becomes even more fun in the second year
it is in place. Assuming they has a pleasant experience and the business
continues with this program the response rate only grows each year. Now you
have to look at things like the LTV or lifetime value of that customer. Did
they come in for the first time for this promo? Did they become a regular? Are
they letting their friends know about this too?
Heather: That
really is incredible Tracy
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