Tuesday, March 1, 2011

Fishbowl Cocktail Facts

• 10 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 50 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

• Why Email?• Successful Email Program • How to Build Your Email List

– 1 In Store– 2 Viral– 3 Online/Social Media– 4 Mobile– 5 What’s Next?

• Tracking & Measuring Results

Why Email Marketing?

• 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)

• Restaurant customers open and respond to a restaurant’s email

• 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)

Key to a Successful Email Program

Attract new customers to your brand

Engage with your customers

to increase frequency of

visits

Capture those customers who

want to hear from you

How do you find new customers?

Where do you focus your marketing budget?

5

ROI Increases with Email List Growth

More members more opens more traffic greater ROI.Email database size benchmarks by restaurant category*:

Growing your audience can result in 2 to 4 times greater returns than average. *Data as of December 2010, rounded to the nearest 100

6

Category Per Store Average Top 10% PercentileCasual Dine 3,100 7,600

Fine Dine 3,700 4,300Fast Casual 1,000 3,900

Family 600 1,700Quick Serve 500 1,200Your Brand XXX Percentile Rank

Year 1 Year 2 Year 3 Year 4$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$6.20

$12.40

$18.60

$24.80

Customer Lifetime Value

Customer Lifetime Value

What is the value of a new member to your restaurant?– Restaurant Metrics: $15 Check Average, $5 discount on welcome or birthday offer– Customer Life: 4 year customer life (based on 2% churn per month), 10% redemption of a discounted offer each year, 10% visit once

additionally at full price each year– Value of a Known Guest: Assume that check average is 20% higher on e-club members – known guests are more valuable to you than

unknown guests, and provide you the ability to market to them over and over again

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Leaky Bucket Problem

• All restaurants experience a regular churn rate on their email program:

• A strong growth strategy is critical in order to overcome regular list churn and keep your program producing positive results.

• Your email database mirrors what occurs in your restaurant. In order to grow your customer base, you need to replace lost subscribers in addition to finding new subscribers.

• Paper Sign Up Slips• Staff Engagement &

Incentives• POS Materials• To-Go Bags• Window Clings• Placemats• Staff Buttons• Loyalty Cards

1. How To Grow Your List – In Store

Not just side-work

• Engaging your staff is the most important component of building your list in-house.

• Discuss with your FOH staff that building your email list is an investment in the growth of your restaurant.

• Share results of successful campaigns • Offer incentives to your employees to

encourage list growth

2. How to Build Your List- Viral

• Forward to a Friend• Family Join• Public & Charity

Events• Community

Fundraisers

Allow your existing e-club members to extend the reach of your restaurant’s message, by sharing with their friends and family.

• Offer referral incentives & contests• One-Click Forward to a friend• Social Sharing

.

Refer a Friend

Encourage Family’s to Join

• Grow your member database while increasing brand impressions

• Control messaging directed at children

• Target members sharing a single email address

• Build Database while increasing family frequency

• Gain access to all Family members – even those without an email address

3. How To Grow Your Lists – Online

• Website Join Form• Social Media Sites• Contests/

Sweepstakes• Online Ordering• Online Reservations

New Media

Marketing

Mobile Devices

Social MediaEmail

Is email really Social?

How are people sharing?

Connecting Facebook Fans to Email databases

User Signs In

Becomes a Fan

Receive Status

Updates

Responds and

Shares

Fan Signs Up for E-club

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Facebook Email Join Form

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.

Connecting Facebook

1. Leverage a Facebook Fan-Gate to increase your Facebook fan club

– Add a tab to your Facebook fan page to capture new “likes”

– Provide an offer to your fans upon “liking” your page

– Drive new members to view & “like” your page via Facebook display advertising, on a pay-for-performance basis

2. Recover lost subscribers– Clean & update your email database with current

contact information– Reconnect with lost customers

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Multi-Channel Promotions

2010 Campaign drove 313,764 offline and 171,563 online opt-ins for the new “Denny’s Rewards” Program. More than nine times the total 50,816 guest registrations gained via the 2009 campaign.

Target Your Best Guests

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

4. How to Build your List- Mobile

57% of US consumers

own a smart phone device,

capable of receiving

email on the go

Mobile Opt-In

According to the Mobile Marketing Association, nearly 60% of mobile web consumers use their devices for shopping. Be it the explosion of app-capable smartphones, growing usage of QRcodes, or the millions of tablets hitting the market, mobile buying is making its mark this quarter

5. How To Grow Your Lists – What’s Next?

• Flash Buying Sites• Location Based

Marketing• Display Networks• Cost per Click Ad’s

(Google Ad Words)

Daily Deals

Connecting the dots

Key takeaway is to embrace how you track if the new guest returns for that second or third visit.

Ensure this by encouraging the guest who redeems the flash-buy offer to sign up for your email club, so you can track if they engage your

restaurant through your email offers.

Location based Marketing trends

Measure your Results

• Analyze and evaluate the success of your marketing

• Improve effectiveness through measurement and testing

• Compare your performance to industry benchmarks

• Share campaign results with your staff

• Gain in-store and online feedback from your guests

How to Measure Results

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

Questions?

THANK YOU!

Twitter.com/fishbowljoeFacebook.com/fishbowljoejgabriel@fishbowl.com

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