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Digital
 Marketing
    For
Restaurants

A Field Guide for
Delighting Guests




      signal
        1
These questions have been further complicated by seismic
                                                       shifts in consumer behavior and media consumption
                                                     habits. Treating all guests the same using mass-marketing
                                                    methods is no longer effective. Today, consumers demand
                                                        individualized and highly relevant communications.


                                                    Giving your guests the great       At Signal, our goal is to be a
    As a restaurateur, tackling digital marketing   experiences they expect in this    resource to help create those
       for the first time can seem daunting.        environment can be a challenge.    opportunities. This digital
                                                    But the right digital marketing    marketing field guide collects
                                                    tools can greatly simplify how     the insights we have gained
       What should your strategy be?                you communicate with and           from our customers’ most
                                                    learn from your guests. They       successful digital campaigns and
   How much should you spend on each                can help you create real value     our deep research of restaurant-
        communication channel?                      for your customers through         marketing best practices. We’re
                                                    digital marketing — and generate   confident that these seven
                                                    a meaningful return for your       recommendations will help you
Which methods can produce the most ROI?
                                                    business.                          lay the groundwork for success
                                                                                       as you develop and implement
And how can you ensure that your corporate
                                                                                       your own digital marketing plan.
 and local marketing efforts remain in sync?
Index
                    1                                                   5

Develop Your Digital Content Strategy                      Deliver Offers That Work
                  Goals                              Influences, Offer Types, Redemption Rates
                                                         by Channel, Timing and Delivery



                    2
                                                                        6
         Define a Test Market
 Pilot Groups, Stakeholders, Growth Rates   Personalize Content for Each of Your Unique Audiences
                                                              Segmentation Methods



                    3
         Build Your Audience                                            7
          Promotions, Incentives                              Track Your Success
                                                              Performance Indicators


                    4

    Learn About Your Customers
    Survey Methods, Response Rates,                                 Summary
            Questions to Ask
1


    Develop
  your digital
content strategy

      Goals
Are you interested in building
                                                         a large database of brand-
                                                         connected customers?



                                                         Are you trying to grow sales
                                                         through timely offers that drive
  This is the “take a step back” moment: a time to
analyze your digital marketing goals and identify the    incremental foot traffic and
 strategies that are most likely to meet them. Since     capture greater share of wallet?
we know this is the hard part, let’s make it easier by
            asking a few basic questions:

                                                         Are you launching a high-profile
                                                         new menu item?



                                                         Are you trying to build and
                                                         deepen customer relationships
                                                         through social media?




                          8                                       9
No matter your goals, nor where you are in your marketing                          Those of you who have already started and
 lifecycle, Signal can help you construct or enhance your                        have a list can focus on enhancing your digital
         digital strategy to garner the desired results.                                  communications with guests by:


If you’re interested in building        similar restaurants can help you
                                                                             Extending your communications beyond email to include
your database or fan following,         imagine what’s possible. This
                                                                             platforms such as Facebook, Twitter and text messaging.
create an acquisition strategy          audience-building phase is one
for the next 12 months. What            of the most exciting, and we
                                                                             Improving the relevance of your communications by segmenting
is the pie-in-the-sky number            have some great case studies to
                                                                             your customer base and personalizing messages to their unique
of engaged fans that you                share about customers who have
                                                                             interests, schedules, and platform preferences.
want to hit? Looking at the             done it well. Signal will cover
benchmark growth rates and              this in Section 3.
                                                                             Gaining deeper insights into your guests using reporting capabilities
subscription totals for other
                                                                             made possible by using a single platform for digital marketing


                                                                             Establishing a consistent workflow across channels to minimize the
                                                                             complexity of scheduling, approving, and sending your messages.




                                                                            Later in this document, Signal will offer tips in each of
                                                                           these areas to help you develop a concrete plan of action.




                                   10                                                                         11
If you’re launching a new                  If you’re tasked with building    No matter what you’re tasked            With Signal, you can collect
item, the biggest priority is              customer relationships via        with, we want to ensure that            email addresses from your
creating the exposure, buzz,               social media, you should think    your strategy is focused on             mobile subscribers by asking for
and incentives for people to               about creating protocols and      customer empathy, relevance,            their email via text or texting
give it a try. To get the word out,        turnaround times for responding   and understanding. From what            them a link to a web opt-in
Signal recommends a cross-                 to customer concerns posted       we’ve learned, understanding            form. You can ask your email
channel approach to reach                  to social networks. If you        preference is key to both               subscribers to add their mobile
a wide audience and engage                 start listening to your guests    acquisition and retention. Some         numbers to their account by
each customer through their                over social media, which          of your guests may prefer a             offering them a link to update
preferred channel for marketing            communications will require       morning email. Others may               their preferences and profile.
communications. With the                   a response, and which won’t?      favor timely text-message               And you can ask your social
amount of marketing noise                  What’s an acceptable response     coupons. And others may solely          media followers if they are
distracting consumers these                time to customer inquiries over   rely upon your social media             interested in receiving email or
days, it’s important to permeate           Facebook and Twitter? The best    presence for news, support,             mobile alerts. Many guests are
the “field of indifference” and            brands on social networks excel   information, and offers. A              only interested in getting their
send customers a relevant                  at listening and responding.      cross-channel approach lets you         information from your brand
personalized message the way               And they focus on elevating the   incorporate the right methods           on Twitter or Facebook. But
they prefer to be reached. To get          prominence of their fans — not    to reach all of your current and        offering your subscribers a
your new menu item on people’s             themselves.                       future guests effectively.              choice allows you to deliver
trays, it will be important to                                                                                       your content to each of them
incentivize those people who                                                                                         appropriately and effectively.
may be willing to give it a try.




                                      12                                                                        13
By activating and engaging new customers, learning more
about them, and sending them more relevant offers using
                                                                             How can you get there?
their preferred delivery method, you can cultivate stronger
                                                                   If you’re just getting started in email or mobile,
  customer relationships and create more value for your
                                                                 the first thing you’ll want to do is pick a test market.
guests using digital media. This, in turn, will lead to higher
      offer-redemption rates and more repeat visits.




                              14                                                            15
2


  Define a
test market

   Pilot Groups

   Stakeholders

   Growth Rates
To oversee these efforts, you’ll        To begin implementation, we
                                                              need a vendor who can help              suggest that you work with
                                                              you create a hierarchal account         a select group of franchise
                                                              structure and workflow, and             operators in a specified market
                                                              you’ll need to select a test            to roll out your new digital
                                                              market.                                 program. Consider starting
                                                                                                      with two to three regions as the
                                                              What we mean by hierarchal              pilot group. Nielsen Designated
                                                              account structure is the ability        Market Areas (DMAs), 2 the
                                                              to organize your restaurants’           standard for defining regional
                                                              marketing programs, much like           U.S. markets, work great for this.
                                                              you organize your restaurant
                                                              management process.                     The operators in these regions
                                                              Franchises are local and often          can help create the playbook
                                                              are run by an owner-operator,           that documents the ways in
                                                              while those local franchises are        which the program is rolled
                                                              then overseen by distributed            out, measured, and improved
                                                              regional managers who answer            upon. By reducing the number
                                                              to key figures at the corporate         of people involved initially,
                                                              level. Signal’s application             you will be able to rapidly
 For digital marketing, we recommend a “think global, act
                                                              allows you to map your digital          implement the program with
  local” approach that enables local franchisees to play                                              less risk. Proving value and
                                                              marketing programs directly to
  a role. If you give individual store managers their own     the same system. The workflow           documenting the effort has the
subscription list, and sometimes their own social presence,   acts as a mechanism to preserve         added benefit of encouraging
they can access and build upon their immediate customer       brand standards and prevent             adoption by other franchises.

  base while still taking advantage of nationally directed    abuses by requiring approvals
                                                                                                      When putting together your test
                                                              for marketing actions within the
                campaigns from corporate.                                                             plan, you should specifically
                                                              application. For example, it can
                                                                                                      identify the stakeholders who
                                                              be set to require the approval
                                                                                                      will be responsible for managing
                                                              of a regional manager before an
                                                                                                      it, training the employees on
                                                              email can go out.

                            18                                                                   19
the program, and reporting on            Existing data on North                  In our work for our restaurant            If you can set up POS to register
its success. The program can be          American restaurant email               clients, our experience has               coupons redeemed, that will
tracked using key performance            lists shows a wide range of             been that client lists grow over          greatly help to simplify the
indicators, which we will discuss        subscription rates, with the            time to reach an average of 300           redemption-tracking process. If
in-depth later, but the main             majority of lists having less than      mobile subscribers and 1,500              you can’t, you can use a simple
two to focus on at first are             500 subscribers and the next-           email subscribers per store               counter card behind the register
acquisition and redemption.              highest percent having more             location after three years, with          on a clipboard to get started.
You’ll want to see that your             than 5,000 subscribers. This is         top-performing stores attracting          Though elementary, this form of
audience is growing, and that            no doubt a reflection of the fact       close to 1,500 subscribers for            tracking is certainly better than
your offers are registering with         that the restaurant market is           text and 7,500 subscribers for            none, and the success metrics
consumers and driving them to            numerically dominated by small,         email. 4 These numbers may                will inspire other stores to get
the store.                               independent restaurants on one          at first appear small, but if             serious.
                                         end and large chain operations          you consider the fact that the
                                         on the other.                           average QSR generates about
                                                                                 20,000 unique customer visits
                                                                                 per month, it becomes clear that
                                                                                 digital is a very effective way to
                                                                                 connect with your most loyal
  North American Restaurant
                                                                                 customers.5
       Email List Sizes3
                                                                   over 5000

                                                                     13%
                                                   3000–5000


                                    1000–3000
                                                      2%
                                      4%
                    500–1000

    under 500        10%
      71%
                                                 Percentage of Lists with a
                                             Given Number of Email Subscribers




                                    20                                                                                21
3


build your
 audience

   Promotions

   Incentives
If you are like many restaurateurs, you’re not currently                      Incentives for subscriptions:
   pursuing digital marketing, are doing email marketing                    Little Caesar’s gave out a free small pizza to anyone
only, or are using separate systems for your SMS and email                  who signed up and shared his or her address. In one
                                                                            DMA region, this attracted 18,000 subscribers in
  efforts. By migrating to a cross-channel system, you can
                                                                            under 60 days.6 The value of a subscriber to them
  start gleaning more information about your subscribers,
                                                                            was greater than the loss of one small pie, and they
   including their background and channel preferences.                      viewed this as a huge success.


Using a tool like Signal, you can        Cross-channel promotions are       Culver’s offers new subscribers a free value meal
initially upload your separate           a surefire way to speed the        upon signing up, and has seen a fantastic response to
lists and later deploy tactics to        initiation and development of      this offer.
eliminate duplicate identities.          deeper customer relationships.
Over time, you will develop a            Our efforts powering more than
consolidated digital platform            150,000 of these successful        Slim Chickens restaurant in Arkansas gives out a free
that enables you to get a more           campaigns gives us a nice          drink with any meal purchase if you show that you
unified view of your customers.          vantage point on what works.       have recently signed up.
You will also be able to build           We are excited to share some
your audience more effectively           real-world examples of effective
by connecting with existing and          approaches for growing your
new subscribers effectively over         subscriber base and drawing
multiple channels.                       them into your brand.




                                    24                                                        25
Sweepstakes offers:                                                  Live audience engagement:
Sweepstakes have been the most popular approach for effective          If you already have a partnership with a local sports team, you can
list-building among Signal customers. By complementing traditional     leverage your ad buys to get subscriptions. A sports trivia or poll
means of contest entry such as text and web with social media          game is often enough to activate the audience and get them to join
integration (Twitter, Facebook), our customers have obtained high      your list. After one regional ice cream brand ran a promotion at a
growth rates.                                                          football game, it saw a 35% open rate on its follow-up emails. 10


                By executing a Facebook sweepstakes tied to a movie    Outside of sweepstakes and promotions, if your budget is tight you
                release, one local brand acquired 80,000 subscribers   can use pre-existing planned events, point-of-purchase incentives,
                in six weeks.
                            7
                                                                       and email to integrate calls to action (CTAs) into existing media buys.
                                                                       Here are some tips:

                More recently, a national brand received 1.5 million
                requests for a mixed-value promotional coupon in           Add a text CTA to your tray liners and in-store signage
                just two weeks.   8


                                                                           Post sign-up CTAs on your Facebook and Twitter walls

                One standalone restaurant ran a Facebook

   $
                                                                           Gather sign-ups at a festival or parade
                sweepstakes for a $250 gift card and received over
                6,000 entries—all of whom became new subscribers.9
                                                                           Use existing radio and television ad buys to prompt subscriptions




                                      26                                                                   27
4


  learn
about your
customers

  Survey Methods

  Response Rates

  Questions to Ask
You’ve got subscribers! Now what? It’s time to learn more                  No matter what you’re asking, we recommend limiting your mobile-
  about their behaviors and preferences. This will help you                  specific survey interaction to three to five questions. The more
                                                                             questions you ask, the more likely that participants will drop off
develop much richer relationships with them and keep them
                                                                             before completing the survey.11 Good mobile survey campaigns yield
on your list for the long haul. To understand your customers,                40% response rates, and completion rates exceeding 90% for those
you should ensure you are working with the right vendor to                   who opt to respond.12 According to University of Texas, other survey
 implement tracking, build analytics, survey your members,                   methods have the following response rates:
         and mine your customer database for trends.


The restaurants we work with              IP for iPhone, SD for standard
engage their guests in creative           feature phone, and OT for
ways to uncover more than just            other. Later, the customer could                         Online:
a mobile phone number. Good               segment its audience based                               30% average response
information to capture includes           upon this response to deliver
food preference, customer age,            device-appropriate content.
and favorite time of day to visit.                                                                 Email:
A brief mobile or web survey              One survey principle that Signal
                                          believes in is challenging your
                                                                                                   40% average response
is often the easiest way to get
these details.                            assumptions. One of the most
                                          powerful questions is to just
One Signal customer asked its             ask customers, “Would you                                Direct Mail:
entire list what type of phone            be interested in X?” It’s the                            50% average response13
they had via text, giving people          easiest way to get a true market
the option to respond with BB             assessment on a concept or idea
for BlackBerry, AD for Android,           that you’re considering.




                                     30                                                                        31
When starting to gather                  On top of surveying, tools like
insights, view it as a long-term         Signal enable you to identify
relationship. Don’t feel the need        trends in the data of your
to survey your customers every           marketing messages. Perhaps a
week. Instead, start by asking a         message sent on a Wednesday
few questions each month. And            about a family dinner had a
remember to put the consumer             40% open rate, and a message
in control. Reassure them that           sent on a separate weekday
the survey is only to improve            about a couples’ night had only
your relationship, and that their        a 10% open rate. One could
personal data will be protected.         assume this may mean people
This will help increase                  in your vicinity are more likely
participation.                           to consider your restaurant           Once you’ve developed some insights about what
                                         for dining with their kids on      your customers want, you can begin to craft compelling,
                                         weekdays. Insights like this are
                                                                                            highly targeted offers.
                                         often hiding in plain sight in
                                         your campaign data.




                                    32                                                                33
5


  Deliver
Offers that
   Work

         Influences

        Offer Types

Redemption Rates by Channel

    Timing and Delivery
A recent Harris poll15 asked, “What is most important
                                                          to consumers when deciding where to eat, based on
                                                          different meals?” The answer highlighted the relative
                                                                 importance of decision-making drivers.




                                                                        Harris Poll on Dining Habits
                                                                      Percent of respondants who say it’s an extremely
                                                                            important or very important factor.

    Developing a deep understanding of what your
 customers value will make your offers more effective.                                                                   price
                                                                                                 location                50%
Coupons are used by roughly a third of QSR diners,                            mood                47%
  and are heavily sought by people who research                               41%
                restaurants online. 14
                                                            Offers

                                                            23%




                                                            Knowing what is influencing people helps you to
                                                         understand their psychology when you craft your offer.
                                                          Below we help you determine what offers work best,
                                                                     via what channel, at what time of day.

                          36                                                                37
Which offers work best?                                                              Most successful offers:

   By working with our customers to analyze what factors
impacted the success of their campaigns, we identified the
                                                                                          BO
     best-performing offer types. Here’s what we found.
                                                                                          GO                                          -$1
                               Success factors:
High face values                          Longer redemption periods             BOGO The classic buy-one-                   Dollar Off It’s crazy what people
Consumers prefer coupons with             The longer a customer has to          get-one-free offer can be a great           will do to save a dollar. One Signal
higher face values as they provide        redeem an offer, the higher your      method to drive floor traffic and           customer saw 430 additional sales
a greater incentive to purchase           total redemption rate will be. Be     increase ticket totals. Evidence has        of an item in one day with a $1 off
the product.                              sure to also consider the lead        shown that this offer type increases        deal.17
                                          times associated with the various     sales up to 13%.16
High discount rates                       methods of coupon distribution
Consumers respond more favorably          as you determine the optimal
to coupons that offer a higher-           expiration period.
percentage discount on the average
purchase price.                           Security                                       FREE
                                          To reduce counterfeiting, take
Seasonality                               advantage of solutions that prevent
Offerings targeted for the season         the coupon image from appearing       Loss Leader Any size soft drink             Free Upgrade Low-cost meal size
(such as ice cream in the summer          on screen, limit the number of        for a dollar? Loss-leader incentives        upgrades are a great way to get
and chili in the winter) are more         coupons that can be printed, and      like this can get people in the             people through the drive through,
likely to motivate response.              send the coupon directly to the       door during slow hours. We’ve had           especially in the increasingly hot
                                          printer. This simple move both        customers tell us about people              summers. We’ve seen this deal type
Imagery
                                          prevents most potential problems      turning around in their car while           lead to a 33% redemption rate.18
If the coupon is for a food
                                          and allows you to leverage the        heading to another restaurant
product, featuring an image of the
                                          tracking power of the Internet.       to visit our client’s because they
product always helps to reinforce
its taste appeal.                                                               received a timely loss-leader offer.



                                     38                                                                                39
Which channel should I use?                                                  The Power of Mobile
                                                                                 (Average 8 to 20% redemption rate)20, 21, 22
What channels make the most sense for your offers? Here are some      Mobile marketing is a great channel for many reasons: its intimacy,
observations. Keep in mind that for freestanding inserts and direct     directness, high read rates, high clickthrough, immediacy, and
mail, offer redemption rates hang around the 1 to 4% mark.19 Just     timeliness. It’s particularly ideal for real-time offers and alerts, such
more evidence that offers targeted directly at the consumer have          as deals designed to drive lunch traffic or weekend specials.
higher redemption rates than mass-distributed coupons.
                                                                                                    Immediacy
                                                                                        83% of texts read within 1 hour. 23

                                                                                                   Engagement
                     Share:
                                                                                   On the mobile web, 46% of people looking
                     14–20% Percent Redeemed                                     at restaurant locations, and 29% at the menu. 24

                                                                                                 High clickthrough
                     Mobile:                                                     Mobile marketing has 3 to 5 times the reported
                     8–20% Percent Redeemed                                           clickthrough rate of other mediums. 25

                                                                                                 High redemption
                                                                                  The most successful programs sport coupon
                     Email:                                                              redemption rates of up to 69%. 26
                     2–15% Percent Redeemed


                     Direct Mail:
                     2% Percent Redeemed




                                 40                                                                      41
The Potency of Email                                                     The Potential of Social
          (Average 2 to 15% redemption rate)27,28,29                                (Average 14 to 20% redemption rate)32,33
Email is considered the “tried and true” digital marketing channel.      Social media is the fastest-growing channel of all and offers multiple
 Its advantages include ubiquity, low cost, sophisticated tracking           advantages. It’s free, has an incredibly high user volume, is a
capabilities, high-activity periods, personalization capability, and      trusted channel, offers utility as the face of brand, has high click-
 legacy lists. It’s great for morning offers to attract people to your     through rates, and has a propensity to go viral through sharing.
              restaurant for dinner or the weekend.   30
                                                                          According to eMarketer, 37% of Facebook users like fan pages just
                                                                         to receive coupons and deals.34 Though data tracking social media’s
                                 Cost
                                                                          effectiveness is limited, case studies have shown deals leading to
              Email is inexpensive, often costing well
                                                                                           redemption rates of up to 20%.35
                 under a penny per email message.
                                                                                                  High adoption rates
                             Legacy lists
                                                                         There are over 45 million36 smartphones in the U.S., more than 100
Chances are you already have a database of guest email addresses.
                                                                           million Twitter users,37 and over 800 million Facebook users.38
It’s easy to get started with email offers when you already have an
          opted-in group of brand-interested customers.                                        Heavy usage for research
                                                                                      On the mobile web, 46% of people look at
                        High-activity periods
                                                                                      restaurant locations, and 29% at menus.39
Email open rates and click rates are very high in the early morning,
     and also attractive in mid-afternoon and early evening.31                                    Engagement periods
                                                                         The social network activity rate on Twitter and Facebook is highest
                                                                            in the morning, during lunch, and in late evening. Social posts
                                                                          are a great way to catch attention of consumers on their morning
                                                                                 bus ride, or the last few online minutes of the day. 40

                                                                                                          Cost
                                                                             Outside of paying a license fee for a solid engagement tool,
                                                                                messaging on Twitter and Facebook is essentially free.




                                  42                                                                       43
When should I send offers?                                As you can see, breakfast is the         Lunch is the most popular
                                                                        most spontaneous decision,               QSR visit, so offers sent shortly
                                                                        followed by lunch, and lastly            before lunch can be very
                                                                        dinner, which people tend to             successful in driving visits.
                                                                        ponder most deeply. One could
                                                                                              41
                                                                                                                 These offers should ideally be
“Day of week is very important. We see substantially higher
                                                                        assume lunch offers should be            communicated via text or social
   redemption rates on weekends than say a Thursday.”                   sent within the hour before local        network, as email is not heavily
         – Signal Customer, New Media Manager                           lunch time, and dinner offers            used during the lunch period.
                                                                        any time after 5 p.m., yet the
                                                                        earlier the better.                      Dinner offers work best
 You’re probably wondering what the best time of day is to                                                       delivered in the early evening,
send offers. Engaging your guests at the right time can make            To summarize, the rate                   and are also acceptable in the
  the difference between people reading and ignoring your               of discount, urgency, and                morning via email or tweet.

 emails and texts. The best way to know the optimal time to             seasonality of your offer have a         Convenience and value are the
                                                                        crucial impact on redemption             most important factors driving
send is through testing, but there’s plenty of solid benchmark
                                                                        rates. The greater the deal, the         QSR decision-making.
 data available to provide directional insights. Google Think           more likely it will be redeemed.
  Insights asked the question, “When are dining decisions               When planning your offers,
        being made?” to compile the following data.                     consider that breakfast deals
                                                                        are a crapshoot, as breakfast is
                                                                        the least-visited QSR option,
    Majority of Diners are Planning Where to Eat                        and the decision is rarely made
       How far in advance do diners decide which restaurant to go to?   based upon factors you can
                                                                        control.


         Breakfast                 Lunch                   Dinner




     Always go to the same place                 Less than an hour
     An hour or more                             Impulse

                                    44                                                                      45
6


  personalize
content for each
    of your
Unique Audiences

     Which offers work best?

   Which channel should I use?

   When should I send offers?
According to a Forrester Research study,                           Another way to segment is                still benefit from a master list,
         nearly $144 million will be wasted by 2014                          by age attributes, collected             but can have some sub-segments
                                                                             when you ask for birthday                to target on and improve ROI.
  on emails that get lost in inbox clutter due to a lack
                                                                             information. Would you address           For instance, you could set up
     of relevancy. 42 Marketing fails when companies                         the over-60 crowd of diners the          a segment for those interested
    ignore customer expectations and take customer                           same way as the college kids?            in only family sized-deals,
      relationships for granted by sending too many                          It’s unlikely. Segmentation can          weeknight deals, or late-night
                       untargeted messages.                                  help you target your tone as well        deals. You could segment by
                                                                             as your offers.                          menu items, creating sub-groups
                                                                                                                      for submarine, salad, and pizza
As we’ve established, customers          commonplace gives you an            A third recommendation is to             lovers. Or you could segment
are full of valuable information         opportunity to outperform the       create segments based upon               vegetarians from meat-lovers.
that can help you market to              norm, steal customers from the      deal interests. This way you’ll
them more effectively. Armed             competition, and deliver the best
with all the great insights              return on your marketing dollar.
you’ve collected, your focus                                                  Data has shown that segmentation can help you achieve
should be on creating highly             One way to begin segmenting           up to a 90% increase in open rates, and a 46% increase
targeted and personalized                is to create similar groups
                                                                                in clickthrough. 43 More importantly, you can improve
messaging. Products like Signal          of customers based on data
                                         attributes collected, and quickly
                                                                                 relationships by sparing your guests from junk mail.
offer all the tools necessary
to do this very efficiently. As          execute alternative offers and

we’ve observed working with              test different call-to-action

restaurant marketers, too many           language to subgroups within

of you are missing this important        a segment to test their relative

component to keeping your                effectiveness. As your database

subscribers engaged. The                 continues to grow, the benefits

fact that such targeting is not          of this segmenting approach will
                                         become increasingly evident.




                                    48                                                                           49
7


  track
  your
 success

Performance Indicators
Now that you’re creating great relationships with your                In addition, you should get comfortable with cohort analyses to help
  customers and sending personalized relevant offers, it’s               track stickiness. Simply put, cohort analysis means dividing your
                                                                         subscribers into groups to better profile your list. For example, by
time to track your success. Without a way to measure your
                                                                         dividing your list into groups based on length of subscriptions, you
 program, you won’t know what management decisions to                    can see if most of your customers have been involved 1 to 3 months,
  make during the program’s lifecycle. We’ve narrowed it                 3 to 6, 6 to 9, or up to a year or more. This is a useful indicator of how
 down to nine performance indicators that you can begin                  successful you’ve been in retaining subscribers long term.
                       tracking immediately.

                                                                                                        Response
                             Acquisition                                 Tracking response is easy if you know what to measure. Often click-
                                                                         through rates, open rates, and survey response rates are the metrics
Every opt-in or new follower is a win. By reviewing the volume of
                                                                         that can best help you determine what subject lines and offers
permission-based opt-ins over time, you can gauge your success
                                                                         register best with your audience.
on a campaign-by-campaign basis. The Signal platform allows you
to easily identify which ads or promotions in a campaign led to new
subscribers, a key for determining which tactics you should focus on                                Redemption rate
in future campaigns.
                                                                         How many people opened the coupon, and of those how many
                                                                         actually showed up in store to redeem it? Redemption is a true
                                                                         metric of how compelling your offers are. If people are opening
                              Stickiness
                                                                         but not redeeming them, it’s time to rethink your offer strategy. If a
It’s critical to retain subscribers and maintain valuable touch points   third or more of your offers sent are being redeemed, you’re doing
with your guests. To ensure stickiness, your CTAs when asking for        something right.
the initial subscription should clearly and honestly state the content
people will receive when they join your list. If your unsubscribe rate
is over 10%, you’re doing something wrong. 44




                                  52                                                                         53
Average sales per redemption                                                       Response time
By looking at ticket totals when a purchase is made with a marketing         When managing customer relationships through social networks or
offer redeemed, you can start to see if you are getting true ROI out of       email, you should track how long it takes your team to respond to
these offers. If you compare this figure to non-offer ticket totals – how    customer issues and complaints. Once you see your initial average,
does it stack up? As apparel retailers such as the Gap and Banana           and the volume of issues, you can set a goal for where you want to be.
Republic have proven, sometimes a small discount can be the nudge
to drive additional purchases.

          Average cost per acquired subscriber or fan
How much did it cost you to acquire a subscriber? If you ran a
billboard advertisement for $10,000 and were told you would get
500,000 impressions, that’s roughly $.02 per impression. If 10%
of people opt in, you’ve paid $10,000 for 50,000 subscribers —
$.20 for each converted subscriber. This figure should go into your
calculations to help you understand if your program is profitable.



                   Average value of a subscriber
Looking at redemption rates, the average number of digital “offer-
holding” visits each month, and the average ticket total of these visits,
you can start to put together the average monthly value of a subscriber.



                        Customer satisfaction
When you survey customers, add a question about satisfaction and ask
them how they feel about your menu, customer service, and ambiance.
Service companies (Netflix, Comcast) have mastered this art. Look to
them for inspiration. Similarly, you should use your social analytics
toolset to track the “brand sentiment” online. If it’s mainly negative,
you should figure out what’s necessary to remedy that.


                                    54                                                                       55
summary                                                                   About Signal

“All truths are easy to understand once they are discovered;                 Signal develops and provides marketing solutions
         the point is to discover them.” - Galileo Galilei               designed to help companies acquire, retain and develop
                                                                         customer relationships via mobile, social, web and email.
You’ve made it to the end of        industries, the opportunity           The company’s easy-to-use software-as-a-service cross-
our digital field guide, and we     to be a recognized leader in         channel campaign management platform (Signal) enables
hope you’ve gathered some           restaurant marketing is yours for       marketers to rapidly develop, execute, and analyze
thought-provoking insights along    the taking.
                                                                         campaigns using multiple channels, all feeding a common
the way. With a cross-channel
                                    As you embark upon your digital      customer database embracing the concept of a universal
strategy focused on customer
understanding, you’re headed        marketing plan, the guiding           profile. Used by many leading brands, retailers, online
in the right direction. We’d like   principle we hope you follow         services, agencies, and broadcast media, Signal processes
you to consider this document       is to power your engagement
                                                                              millions of customer interactions each month.
as a handbook for testing. We       efforts through empathy and

hope you test our tips, break our   relevancy. As you learn about

benchmarks, and create a new        your customers’ behaviors and
                                                                                             www.signalhq.com
digital case study of your own.     preferences, you can integrate
                                    those insights into your
At this point, you are ready        marketing messages. Using this                          hello@signalhq.com
to go out and blaze trails for      approach, you will be able to
the restaurant world. With          make choices that deepen your
                                                                                               877–450–0075
the bar currently set lower for     customer relationships through
intelligence-driven offers in       sincerity, relevance, and respect.
restaurants than in many other
                                                                                                    57
Notes                                      25. http://econsultancy.com/us/blog/7536-ctr-from-mobile-search-is-three-times-
                                                                                  higher-study
1. Research of Signal’s top 50 QSRs                                               26. http://www.mobilemarketingwatch.com/dominoes-sms-push-drives-foot-traffic-
2. http://en.wikipedia.org/wiki/Media_market                                      achieves-69-redemption-rate-with-sms-10675/

3. http://www.benchmarkemail.com/resources/manuals/restaurants/email-marketing-   27. Research of Signal’s top 50 QSRs
statistics                                                                        28. http://www.marketingsherpa.com/content/?q=node/13608
4. Research of Signal’s top 50 QSRs                                               29. http://www.experian.com/assets/marketing-services/white-papers/EMS_coupon_
5. http://blog.signalhq.com/2010/04/28/engagementnot-offers-mobile-101/           report_WP.pdf

6. Research of Signal’s top 50 QSRs                                               30. http://blog.kissmetrics.com/science-of-social-timing-2/

7. Ibid.                                                                          31. Ibid.

8. Ibid.                                                                          32. http://www.socialmediaexaminer.com/cold-stone-transforms-the-ice-cream-social-
                                                                                  with-facebook/
9. Ibid.
                                                                                  33. http://www.imediaconnection.com/content/26634.asp
10. Ibid.
                                                                                  34. http://www.adweek.com/news/technology/coupons-drive-sales-social-media-102541
11. http://blog.surveymonkey.com/2010/12/survey_questions_and_completion_rates/
                                                                                  35. http://www.imediaconnection.com/content/26634.asp
12. http://blog.signalhq.com/2010/04/28/engagementnot-offers-mobile-101/
                                                                                  36. http://metrics.admob.com/2010/04/45-million-us-smartphone-users-comscore/
13. http://www.utexas.edu/academic/ctl/assessment/iar/teaching/gather/method/
survey-Response.php                                                               37. http://www.huffingtonpost.com/2010/04/14/twitter-user-statistics-r_n_537992.html

14. http://oxygen.mintel.com/sinatra/oxygen/display/id=482752                     38. https://www.facebook.com/press/info.php?statistics

15. http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl/          39. http://www.gstatic.com/ads/research/en/2009_OnlineDinerResearchers.pdf
ReadCustom%20Default/mid/1508/ArticleId/377/Default.aspx                          40. http://www.sysomos.com/insidetwitter/
16. Research of Signal’s top 50 QSRs                                              41. http://www.gstatic.com/ads/research/en/2009_OnlineDinerResearchers.pdf
17. Ibid.                                                                         42. http://www.forrester.com/ER/Press/Release/0,1769,1286,00.html
18. Ibid.                                                                         43. http://www.marketingsherpa.com/content/?q=node/5766
19. http://www.experian.com/assets/marketing-services/white-papers/EMS_coupon_    44. http://blog.signalhq.com/2010/04/28/engagementnot-offers-mobile-101/
report_WP.pdf
20. Research of Signal’s top 50 QSRs

21. http://blog.signalhq.com/2010/04/28/engagementnot-offers-mobile-101/

22. http://shop.yankeegroup.com/product/243/Yankee-Group%92s-Mobile-Coupon-
Forecast%3A-Integrating-Mobile-Into-the-Retail-Shopping-Experience-

23. http://www.nytimes.com/2009/09/24/business/smallbusiness/24texting.
html?scp=2&sq=83%%20of%20text%20messages%20read%20within&st=cse

24. http://www.gstatic.com/ads/research/en/2009_OnlineDinerResearchers.pdf




                                        58                                                                                  59

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Digital marketing for restaurants

  • 1. Digital Marketing For Restaurants A Field Guide for Delighting Guests signal 1
  • 2. These questions have been further complicated by seismic shifts in consumer behavior and media consumption habits. Treating all guests the same using mass-marketing methods is no longer effective. Today, consumers demand individualized and highly relevant communications. Giving your guests the great At Signal, our goal is to be a As a restaurateur, tackling digital marketing experiences they expect in this resource to help create those for the first time can seem daunting. environment can be a challenge. opportunities. This digital But the right digital marketing marketing field guide collects tools can greatly simplify how the insights we have gained What should your strategy be? you communicate with and from our customers’ most learn from your guests. They successful digital campaigns and How much should you spend on each can help you create real value our deep research of restaurant- communication channel? for your customers through marketing best practices. We’re digital marketing — and generate confident that these seven a meaningful return for your recommendations will help you Which methods can produce the most ROI? business. lay the groundwork for success as you develop and implement And how can you ensure that your corporate your own digital marketing plan. and local marketing efforts remain in sync?
  • 3. Index 1 5 Develop Your Digital Content Strategy Deliver Offers That Work Goals Influences, Offer Types, Redemption Rates by Channel, Timing and Delivery 2 6 Define a Test Market Pilot Groups, Stakeholders, Growth Rates Personalize Content for Each of Your Unique Audiences Segmentation Methods 3 Build Your Audience 7 Promotions, Incentives Track Your Success Performance Indicators 4 Learn About Your Customers Survey Methods, Response Rates, Summary Questions to Ask
  • 4. 1 Develop your digital content strategy Goals
  • 5. Are you interested in building a large database of brand- connected customers? Are you trying to grow sales through timely offers that drive This is the “take a step back” moment: a time to analyze your digital marketing goals and identify the incremental foot traffic and strategies that are most likely to meet them. Since capture greater share of wallet? we know this is the hard part, let’s make it easier by asking a few basic questions: Are you launching a high-profile new menu item? Are you trying to build and deepen customer relationships through social media? 8 9
  • 6. No matter your goals, nor where you are in your marketing Those of you who have already started and lifecycle, Signal can help you construct or enhance your have a list can focus on enhancing your digital digital strategy to garner the desired results. communications with guests by: If you’re interested in building similar restaurants can help you Extending your communications beyond email to include your database or fan following, imagine what’s possible. This platforms such as Facebook, Twitter and text messaging. create an acquisition strategy audience-building phase is one for the next 12 months. What of the most exciting, and we Improving the relevance of your communications by segmenting is the pie-in-the-sky number have some great case studies to your customer base and personalizing messages to their unique of engaged fans that you share about customers who have interests, schedules, and platform preferences. want to hit? Looking at the done it well. Signal will cover benchmark growth rates and this in Section 3. Gaining deeper insights into your guests using reporting capabilities subscription totals for other made possible by using a single platform for digital marketing Establishing a consistent workflow across channels to minimize the complexity of scheduling, approving, and sending your messages. Later in this document, Signal will offer tips in each of these areas to help you develop a concrete plan of action. 10 11
  • 7. If you’re launching a new If you’re tasked with building No matter what you’re tasked With Signal, you can collect item, the biggest priority is customer relationships via with, we want to ensure that email addresses from your creating the exposure, buzz, social media, you should think your strategy is focused on mobile subscribers by asking for and incentives for people to about creating protocols and customer empathy, relevance, their email via text or texting give it a try. To get the word out, turnaround times for responding and understanding. From what them a link to a web opt-in Signal recommends a cross- to customer concerns posted we’ve learned, understanding form. You can ask your email channel approach to reach to social networks. If you preference is key to both subscribers to add their mobile a wide audience and engage start listening to your guests acquisition and retention. Some numbers to their account by each customer through their over social media, which of your guests may prefer a offering them a link to update preferred channel for marketing communications will require morning email. Others may their preferences and profile. communications. With the a response, and which won’t? favor timely text-message And you can ask your social amount of marketing noise What’s an acceptable response coupons. And others may solely media followers if they are distracting consumers these time to customer inquiries over rely upon your social media interested in receiving email or days, it’s important to permeate Facebook and Twitter? The best presence for news, support, mobile alerts. Many guests are the “field of indifference” and brands on social networks excel information, and offers. A only interested in getting their send customers a relevant at listening and responding. cross-channel approach lets you information from your brand personalized message the way And they focus on elevating the incorporate the right methods on Twitter or Facebook. But they prefer to be reached. To get prominence of their fans — not to reach all of your current and offering your subscribers a your new menu item on people’s themselves. future guests effectively. choice allows you to deliver trays, it will be important to your content to each of them incentivize those people who appropriately and effectively. may be willing to give it a try. 12 13
  • 8. By activating and engaging new customers, learning more about them, and sending them more relevant offers using How can you get there? their preferred delivery method, you can cultivate stronger If you’re just getting started in email or mobile, customer relationships and create more value for your the first thing you’ll want to do is pick a test market. guests using digital media. This, in turn, will lead to higher offer-redemption rates and more repeat visits. 14 15
  • 9. 2 Define a test market Pilot Groups Stakeholders Growth Rates
  • 10. To oversee these efforts, you’ll To begin implementation, we need a vendor who can help suggest that you work with you create a hierarchal account a select group of franchise structure and workflow, and operators in a specified market you’ll need to select a test to roll out your new digital market. program. Consider starting with two to three regions as the What we mean by hierarchal pilot group. Nielsen Designated account structure is the ability Market Areas (DMAs), 2 the to organize your restaurants’ standard for defining regional marketing programs, much like U.S. markets, work great for this. you organize your restaurant management process. The operators in these regions Franchises are local and often can help create the playbook are run by an owner-operator, that documents the ways in while those local franchises are which the program is rolled then overseen by distributed out, measured, and improved regional managers who answer upon. By reducing the number to key figures at the corporate of people involved initially, level. Signal’s application you will be able to rapidly For digital marketing, we recommend a “think global, act allows you to map your digital implement the program with local” approach that enables local franchisees to play less risk. Proving value and marketing programs directly to a role. If you give individual store managers their own the same system. The workflow documenting the effort has the subscription list, and sometimes their own social presence, acts as a mechanism to preserve added benefit of encouraging they can access and build upon their immediate customer brand standards and prevent adoption by other franchises. base while still taking advantage of nationally directed abuses by requiring approvals When putting together your test for marketing actions within the campaigns from corporate. plan, you should specifically application. For example, it can identify the stakeholders who be set to require the approval will be responsible for managing of a regional manager before an it, training the employees on email can go out. 18 19
  • 11. the program, and reporting on Existing data on North In our work for our restaurant If you can set up POS to register its success. The program can be American restaurant email clients, our experience has coupons redeemed, that will tracked using key performance lists shows a wide range of been that client lists grow over greatly help to simplify the indicators, which we will discuss subscription rates, with the time to reach an average of 300 redemption-tracking process. If in-depth later, but the main majority of lists having less than mobile subscribers and 1,500 you can’t, you can use a simple two to focus on at first are 500 subscribers and the next- email subscribers per store counter card behind the register acquisition and redemption. highest percent having more location after three years, with on a clipboard to get started. You’ll want to see that your than 5,000 subscribers. This is top-performing stores attracting Though elementary, this form of audience is growing, and that no doubt a reflection of the fact close to 1,500 subscribers for tracking is certainly better than your offers are registering with that the restaurant market is text and 7,500 subscribers for none, and the success metrics consumers and driving them to numerically dominated by small, email. 4 These numbers may will inspire other stores to get the store. independent restaurants on one at first appear small, but if serious. end and large chain operations you consider the fact that the on the other. average QSR generates about 20,000 unique customer visits per month, it becomes clear that digital is a very effective way to connect with your most loyal North American Restaurant customers.5 Email List Sizes3 over 5000 13% 3000–5000 1000–3000 2% 4% 500–1000 under 500 10% 71% Percentage of Lists with a Given Number of Email Subscribers 20 21
  • 12. 3 build your audience Promotions Incentives
  • 13. If you are like many restaurateurs, you’re not currently Incentives for subscriptions: pursuing digital marketing, are doing email marketing Little Caesar’s gave out a free small pizza to anyone only, or are using separate systems for your SMS and email who signed up and shared his or her address. In one DMA region, this attracted 18,000 subscribers in efforts. By migrating to a cross-channel system, you can under 60 days.6 The value of a subscriber to them start gleaning more information about your subscribers, was greater than the loss of one small pie, and they including their background and channel preferences. viewed this as a huge success. Using a tool like Signal, you can Cross-channel promotions are Culver’s offers new subscribers a free value meal initially upload your separate a surefire way to speed the upon signing up, and has seen a fantastic response to lists and later deploy tactics to initiation and development of this offer. eliminate duplicate identities. deeper customer relationships. Over time, you will develop a Our efforts powering more than consolidated digital platform 150,000 of these successful Slim Chickens restaurant in Arkansas gives out a free that enables you to get a more campaigns gives us a nice drink with any meal purchase if you show that you unified view of your customers. vantage point on what works. have recently signed up. You will also be able to build We are excited to share some your audience more effectively real-world examples of effective by connecting with existing and approaches for growing your new subscribers effectively over subscriber base and drawing multiple channels. them into your brand. 24 25
  • 14. Sweepstakes offers: Live audience engagement: Sweepstakes have been the most popular approach for effective If you already have a partnership with a local sports team, you can list-building among Signal customers. By complementing traditional leverage your ad buys to get subscriptions. A sports trivia or poll means of contest entry such as text and web with social media game is often enough to activate the audience and get them to join integration (Twitter, Facebook), our customers have obtained high your list. After one regional ice cream brand ran a promotion at a growth rates. football game, it saw a 35% open rate on its follow-up emails. 10 By executing a Facebook sweepstakes tied to a movie Outside of sweepstakes and promotions, if your budget is tight you release, one local brand acquired 80,000 subscribers can use pre-existing planned events, point-of-purchase incentives, in six weeks. 7 and email to integrate calls to action (CTAs) into existing media buys. Here are some tips: More recently, a national brand received 1.5 million requests for a mixed-value promotional coupon in Add a text CTA to your tray liners and in-store signage just two weeks. 8 Post sign-up CTAs on your Facebook and Twitter walls One standalone restaurant ran a Facebook $ Gather sign-ups at a festival or parade sweepstakes for a $250 gift card and received over 6,000 entries—all of whom became new subscribers.9 Use existing radio and television ad buys to prompt subscriptions 26 27
  • 15. 4 learn about your customers Survey Methods Response Rates Questions to Ask
  • 16. You’ve got subscribers! Now what? It’s time to learn more No matter what you’re asking, we recommend limiting your mobile- about their behaviors and preferences. This will help you specific survey interaction to three to five questions. The more questions you ask, the more likely that participants will drop off develop much richer relationships with them and keep them before completing the survey.11 Good mobile survey campaigns yield on your list for the long haul. To understand your customers, 40% response rates, and completion rates exceeding 90% for those you should ensure you are working with the right vendor to who opt to respond.12 According to University of Texas, other survey implement tracking, build analytics, survey your members, methods have the following response rates: and mine your customer database for trends. The restaurants we work with IP for iPhone, SD for standard engage their guests in creative feature phone, and OT for ways to uncover more than just other. Later, the customer could Online: a mobile phone number. Good segment its audience based 30% average response information to capture includes upon this response to deliver food preference, customer age, device-appropriate content. and favorite time of day to visit. Email: A brief mobile or web survey One survey principle that Signal believes in is challenging your 40% average response is often the easiest way to get these details. assumptions. One of the most powerful questions is to just One Signal customer asked its ask customers, “Would you Direct Mail: entire list what type of phone be interested in X?” It’s the 50% average response13 they had via text, giving people easiest way to get a true market the option to respond with BB assessment on a concept or idea for BlackBerry, AD for Android, that you’re considering. 30 31
  • 17. When starting to gather On top of surveying, tools like insights, view it as a long-term Signal enable you to identify relationship. Don’t feel the need trends in the data of your to survey your customers every marketing messages. Perhaps a week. Instead, start by asking a message sent on a Wednesday few questions each month. And about a family dinner had a remember to put the consumer 40% open rate, and a message in control. Reassure them that sent on a separate weekday the survey is only to improve about a couples’ night had only your relationship, and that their a 10% open rate. One could personal data will be protected. assume this may mean people This will help increase in your vicinity are more likely participation. to consider your restaurant Once you’ve developed some insights about what for dining with their kids on your customers want, you can begin to craft compelling, weekdays. Insights like this are highly targeted offers. often hiding in plain sight in your campaign data. 32 33
  • 18. 5 Deliver Offers that Work Influences Offer Types Redemption Rates by Channel Timing and Delivery
  • 19. A recent Harris poll15 asked, “What is most important to consumers when deciding where to eat, based on different meals?” The answer highlighted the relative importance of decision-making drivers. Harris Poll on Dining Habits Percent of respondants who say it’s an extremely important or very important factor. Developing a deep understanding of what your customers value will make your offers more effective. price location 50% Coupons are used by roughly a third of QSR diners, mood 47% and are heavily sought by people who research 41% restaurants online. 14 Offers 23% Knowing what is influencing people helps you to understand their psychology when you craft your offer. Below we help you determine what offers work best, via what channel, at what time of day. 36 37
  • 20. Which offers work best? Most successful offers: By working with our customers to analyze what factors impacted the success of their campaigns, we identified the BO best-performing offer types. Here’s what we found. GO -$1 Success factors: High face values Longer redemption periods BOGO The classic buy-one- Dollar Off It’s crazy what people Consumers prefer coupons with The longer a customer has to get-one-free offer can be a great will do to save a dollar. One Signal higher face values as they provide redeem an offer, the higher your method to drive floor traffic and customer saw 430 additional sales a greater incentive to purchase total redemption rate will be. Be increase ticket totals. Evidence has of an item in one day with a $1 off the product. sure to also consider the lead shown that this offer type increases deal.17 times associated with the various sales up to 13%.16 High discount rates  methods of coupon distribution Consumers respond more favorably as you determine the optimal to coupons that offer a higher- expiration period. percentage discount on the average purchase price. Security FREE To reduce counterfeiting, take Seasonality advantage of solutions that prevent Offerings targeted for the season the coupon image from appearing Loss Leader Any size soft drink Free Upgrade Low-cost meal size (such as ice cream in the summer on screen, limit the number of for a dollar? Loss-leader incentives upgrades are a great way to get and chili in the winter) are more coupons that can be printed, and like this can get people in the people through the drive through, likely to motivate response. send the coupon directly to the door during slow hours. We’ve had especially in the increasingly hot printer. This simple move both customers tell us about people summers. We’ve seen this deal type Imagery prevents most potential problems turning around in their car while lead to a 33% redemption rate.18 If the coupon is for a food and allows you to leverage the heading to another restaurant product, featuring an image of the tracking power of the Internet. to visit our client’s because they product always helps to reinforce its taste appeal. received a timely loss-leader offer. 38 39
  • 21. Which channel should I use? The Power of Mobile (Average 8 to 20% redemption rate)20, 21, 22 What channels make the most sense for your offers? Here are some Mobile marketing is a great channel for many reasons: its intimacy, observations. Keep in mind that for freestanding inserts and direct directness, high read rates, high clickthrough, immediacy, and mail, offer redemption rates hang around the 1 to 4% mark.19 Just timeliness. It’s particularly ideal for real-time offers and alerts, such more evidence that offers targeted directly at the consumer have as deals designed to drive lunch traffic or weekend specials. higher redemption rates than mass-distributed coupons. Immediacy 83% of texts read within 1 hour. 23 Engagement Share: On the mobile web, 46% of people looking 14–20% Percent Redeemed at restaurant locations, and 29% at the menu. 24 High clickthrough Mobile: Mobile marketing has 3 to 5 times the reported 8–20% Percent Redeemed clickthrough rate of other mediums. 25 High redemption The most successful programs sport coupon Email: redemption rates of up to 69%. 26 2–15% Percent Redeemed Direct Mail: 2% Percent Redeemed 40 41
  • 22. The Potency of Email The Potential of Social (Average 2 to 15% redemption rate)27,28,29 (Average 14 to 20% redemption rate)32,33 Email is considered the “tried and true” digital marketing channel. Social media is the fastest-growing channel of all and offers multiple Its advantages include ubiquity, low cost, sophisticated tracking advantages. It’s free, has an incredibly high user volume, is a capabilities, high-activity periods, personalization capability, and trusted channel, offers utility as the face of brand, has high click- legacy lists. It’s great for morning offers to attract people to your through rates, and has a propensity to go viral through sharing. restaurant for dinner or the weekend. 30 According to eMarketer, 37% of Facebook users like fan pages just to receive coupons and deals.34 Though data tracking social media’s Cost effectiveness is limited, case studies have shown deals leading to Email is inexpensive, often costing well redemption rates of up to 20%.35 under a penny per email message. High adoption rates Legacy lists There are over 45 million36 smartphones in the U.S., more than 100 Chances are you already have a database of guest email addresses. million Twitter users,37 and over 800 million Facebook users.38 It’s easy to get started with email offers when you already have an opted-in group of brand-interested customers. Heavy usage for research On the mobile web, 46% of people look at High-activity periods restaurant locations, and 29% at menus.39 Email open rates and click rates are very high in the early morning, and also attractive in mid-afternoon and early evening.31 Engagement periods The social network activity rate on Twitter and Facebook is highest in the morning, during lunch, and in late evening. Social posts are a great way to catch attention of consumers on their morning bus ride, or the last few online minutes of the day. 40 Cost Outside of paying a license fee for a solid engagement tool, messaging on Twitter and Facebook is essentially free. 42 43
  • 23. When should I send offers? As you can see, breakfast is the Lunch is the most popular most spontaneous decision, QSR visit, so offers sent shortly followed by lunch, and lastly before lunch can be very dinner, which people tend to successful in driving visits. ponder most deeply. One could 41 These offers should ideally be “Day of week is very important. We see substantially higher assume lunch offers should be communicated via text or social redemption rates on weekends than say a Thursday.” sent within the hour before local network, as email is not heavily – Signal Customer, New Media Manager lunch time, and dinner offers used during the lunch period. any time after 5 p.m., yet the earlier the better. Dinner offers work best You’re probably wondering what the best time of day is to delivered in the early evening, send offers. Engaging your guests at the right time can make To summarize, the rate and are also acceptable in the the difference between people reading and ignoring your of discount, urgency, and morning via email or tweet. emails and texts. The best way to know the optimal time to seasonality of your offer have a Convenience and value are the crucial impact on redemption most important factors driving send is through testing, but there’s plenty of solid benchmark rates. The greater the deal, the QSR decision-making. data available to provide directional insights. Google Think more likely it will be redeemed. Insights asked the question, “When are dining decisions When planning your offers, being made?” to compile the following data. consider that breakfast deals are a crapshoot, as breakfast is the least-visited QSR option, Majority of Diners are Planning Where to Eat and the decision is rarely made How far in advance do diners decide which restaurant to go to? based upon factors you can control. Breakfast Lunch Dinner Always go to the same place Less than an hour An hour or more Impulse 44 45
  • 24. 6 personalize content for each of your Unique Audiences Which offers work best? Which channel should I use? When should I send offers?
  • 25. According to a Forrester Research study, Another way to segment is still benefit from a master list, nearly $144 million will be wasted by 2014 by age attributes, collected but can have some sub-segments when you ask for birthday to target on and improve ROI. on emails that get lost in inbox clutter due to a lack information. Would you address For instance, you could set up of relevancy. 42 Marketing fails when companies the over-60 crowd of diners the a segment for those interested ignore customer expectations and take customer same way as the college kids? in only family sized-deals, relationships for granted by sending too many It’s unlikely. Segmentation can weeknight deals, or late-night untargeted messages. help you target your tone as well deals. You could segment by as your offers. menu items, creating sub-groups for submarine, salad, and pizza As we’ve established, customers commonplace gives you an A third recommendation is to lovers. Or you could segment are full of valuable information opportunity to outperform the create segments based upon vegetarians from meat-lovers. that can help you market to norm, steal customers from the deal interests. This way you’ll them more effectively. Armed competition, and deliver the best with all the great insights return on your marketing dollar. you’ve collected, your focus Data has shown that segmentation can help you achieve should be on creating highly One way to begin segmenting up to a 90% increase in open rates, and a 46% increase targeted and personalized is to create similar groups in clickthrough. 43 More importantly, you can improve messaging. Products like Signal of customers based on data attributes collected, and quickly relationships by sparing your guests from junk mail. offer all the tools necessary to do this very efficiently. As execute alternative offers and we’ve observed working with test different call-to-action restaurant marketers, too many language to subgroups within of you are missing this important a segment to test their relative component to keeping your effectiveness. As your database subscribers engaged. The continues to grow, the benefits fact that such targeting is not of this segmenting approach will become increasingly evident. 48 49
  • 26. 7 track your success Performance Indicators
  • 27. Now that you’re creating great relationships with your In addition, you should get comfortable with cohort analyses to help customers and sending personalized relevant offers, it’s track stickiness. Simply put, cohort analysis means dividing your subscribers into groups to better profile your list. For example, by time to track your success. Without a way to measure your dividing your list into groups based on length of subscriptions, you program, you won’t know what management decisions to can see if most of your customers have been involved 1 to 3 months, make during the program’s lifecycle. We’ve narrowed it 3 to 6, 6 to 9, or up to a year or more. This is a useful indicator of how down to nine performance indicators that you can begin successful you’ve been in retaining subscribers long term. tracking immediately. Response Acquisition Tracking response is easy if you know what to measure. Often click- through rates, open rates, and survey response rates are the metrics Every opt-in or new follower is a win. By reviewing the volume of that can best help you determine what subject lines and offers permission-based opt-ins over time, you can gauge your success register best with your audience. on a campaign-by-campaign basis. The Signal platform allows you to easily identify which ads or promotions in a campaign led to new subscribers, a key for determining which tactics you should focus on Redemption rate in future campaigns. How many people opened the coupon, and of those how many actually showed up in store to redeem it? Redemption is a true metric of how compelling your offers are. If people are opening Stickiness but not redeeming them, it’s time to rethink your offer strategy. If a It’s critical to retain subscribers and maintain valuable touch points third or more of your offers sent are being redeemed, you’re doing with your guests. To ensure stickiness, your CTAs when asking for something right. the initial subscription should clearly and honestly state the content people will receive when they join your list. If your unsubscribe rate is over 10%, you’re doing something wrong. 44 52 53
  • 28. Average sales per redemption Response time By looking at ticket totals when a purchase is made with a marketing When managing customer relationships through social networks or offer redeemed, you can start to see if you are getting true ROI out of email, you should track how long it takes your team to respond to these offers. If you compare this figure to non-offer ticket totals – how customer issues and complaints. Once you see your initial average, does it stack up? As apparel retailers such as the Gap and Banana and the volume of issues, you can set a goal for where you want to be. Republic have proven, sometimes a small discount can be the nudge to drive additional purchases. Average cost per acquired subscriber or fan How much did it cost you to acquire a subscriber? If you ran a billboard advertisement for $10,000 and were told you would get 500,000 impressions, that’s roughly $.02 per impression. If 10% of people opt in, you’ve paid $10,000 for 50,000 subscribers — $.20 for each converted subscriber. This figure should go into your calculations to help you understand if your program is profitable. Average value of a subscriber Looking at redemption rates, the average number of digital “offer- holding” visits each month, and the average ticket total of these visits, you can start to put together the average monthly value of a subscriber. Customer satisfaction When you survey customers, add a question about satisfaction and ask them how they feel about your menu, customer service, and ambiance. Service companies (Netflix, Comcast) have mastered this art. Look to them for inspiration. Similarly, you should use your social analytics toolset to track the “brand sentiment” online. If it’s mainly negative, you should figure out what’s necessary to remedy that. 54 55
  • 29. summary About Signal “All truths are easy to understand once they are discovered; Signal develops and provides marketing solutions the point is to discover them.” - Galileo Galilei designed to help companies acquire, retain and develop customer relationships via mobile, social, web and email. You’ve made it to the end of industries, the opportunity The company’s easy-to-use software-as-a-service cross- our digital field guide, and we to be a recognized leader in channel campaign management platform (Signal) enables hope you’ve gathered some restaurant marketing is yours for marketers to rapidly develop, execute, and analyze thought-provoking insights along the taking. campaigns using multiple channels, all feeding a common the way. With a cross-channel As you embark upon your digital customer database embracing the concept of a universal strategy focused on customer understanding, you’re headed marketing plan, the guiding profile. Used by many leading brands, retailers, online in the right direction. We’d like principle we hope you follow services, agencies, and broadcast media, Signal processes you to consider this document is to power your engagement millions of customer interactions each month. as a handbook for testing. We efforts through empathy and hope you test our tips, break our relevancy. As you learn about benchmarks, and create a new your customers’ behaviors and www.signalhq.com digital case study of your own. preferences, you can integrate those insights into your At this point, you are ready marketing messages. Using this hello@signalhq.com to go out and blaze trails for approach, you will be able to the restaurant world. With make choices that deepen your 877–450–0075 the bar currently set lower for customer relationships through intelligence-driven offers in sincerity, relevance, and respect. restaurants than in many other 57
  • 30. Notes 25. http://econsultancy.com/us/blog/7536-ctr-from-mobile-search-is-three-times- higher-study 1. Research of Signal’s top 50 QSRs 26. http://www.mobilemarketingwatch.com/dominoes-sms-push-drives-foot-traffic- 2. http://en.wikipedia.org/wiki/Media_market achieves-69-redemption-rate-with-sms-10675/ 3. http://www.benchmarkemail.com/resources/manuals/restaurants/email-marketing- 27. Research of Signal’s top 50 QSRs statistics 28. http://www.marketingsherpa.com/content/?q=node/13608 4. Research of Signal’s top 50 QSRs 29. http://www.experian.com/assets/marketing-services/white-papers/EMS_coupon_ 5. http://blog.signalhq.com/2010/04/28/engagementnot-offers-mobile-101/ report_WP.pdf 6. Research of Signal’s top 50 QSRs 30. http://blog.kissmetrics.com/science-of-social-timing-2/ 7. Ibid. 31. Ibid. 8. Ibid. 32. http://www.socialmediaexaminer.com/cold-stone-transforms-the-ice-cream-social- with-facebook/ 9. Ibid. 33. http://www.imediaconnection.com/content/26634.asp 10. Ibid. 34. http://www.adweek.com/news/technology/coupons-drive-sales-social-media-102541 11. http://blog.surveymonkey.com/2010/12/survey_questions_and_completion_rates/ 35. http://www.imediaconnection.com/content/26634.asp 12. http://blog.signalhq.com/2010/04/28/engagementnot-offers-mobile-101/ 36. http://metrics.admob.com/2010/04/45-million-us-smartphone-users-comscore/ 13. http://www.utexas.edu/academic/ctl/assessment/iar/teaching/gather/method/ survey-Response.php 37. http://www.huffingtonpost.com/2010/04/14/twitter-user-statistics-r_n_537992.html 14. http://oxygen.mintel.com/sinatra/oxygen/display/id=482752 38. https://www.facebook.com/press/info.php?statistics 15. http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl/ 39. http://www.gstatic.com/ads/research/en/2009_OnlineDinerResearchers.pdf ReadCustom%20Default/mid/1508/ArticleId/377/Default.aspx 40. http://www.sysomos.com/insidetwitter/ 16. Research of Signal’s top 50 QSRs 41. http://www.gstatic.com/ads/research/en/2009_OnlineDinerResearchers.pdf 17. Ibid. 42. http://www.forrester.com/ER/Press/Release/0,1769,1286,00.html 18. Ibid. 43. http://www.marketingsherpa.com/content/?q=node/5766 19. http://www.experian.com/assets/marketing-services/white-papers/EMS_coupon_ 44. http://blog.signalhq.com/2010/04/28/engagementnot-offers-mobile-101/ report_WP.pdf 20. Research of Signal’s top 50 QSRs 21. http://blog.signalhq.com/2010/04/28/engagementnot-offers-mobile-101/ 22. http://shop.yankeegroup.com/product/243/Yankee-Group%92s-Mobile-Coupon- Forecast%3A-Integrating-Mobile-Into-the-Retail-Shopping-Experience- 23. http://www.nytimes.com/2009/09/24/business/smallbusiness/24texting. html?scp=2&sq=83%%20of%20text%20messages%20read%20within&st=cse 24. http://www.gstatic.com/ads/research/en/2009_OnlineDinerResearchers.pdf 58 59