This casual dine restaurant uses Promotions Manager to track triggered welcome and birthday offers. After the first few months of usage, Fishbowl’s product specialist Drew Hebble performed an initial analysis of the client’s results, which showed that total sales were almost evenly split between the two programs. However, he learned that net sales per member were much higher for the welcome offer, while the average check size of the birthday offer redeemers was 6% higher than that of welcome redeemers. The data also showed that new members who joined via the client’s webpage were more immediately valuable (10X redemptions) than members who joined via sign up slips.
This analysis of Promotions Manager data produced insights into guest behavior that allowed Drew to identify new revenue generating opportunities for the client. Besides building a marketing plan to leverage them, Drew also used the analysis to develop a forecast of annual incremental revenues. This data analysis is exactly what restaurant marketers need to inform their decision making about marketing investments.
So what did Drew propose? He laid out three key strategies to the client:
- Maximize revenues on both the welcome and birthday offers by systematically retargeting non-redeemers.
- Add another source of revenue by introducing a triggered member anniversary message.
- Strengthen online acquisition – driving incremental visits from fans and increasing the proportion of higher value members in the database — by installing Fishbowl’s “My Offers” Facebook app.
Drew crafted a marketing plan that laid out the specific tactic(s) to reach each goal, the email best practices needed to drive strategies 1 and 2, the costs of pursuing each strategy, and the forecasted incremental revenues for each strategy. The forecasts were based on Fishbowl methodology and models and the client’s current performance data.
The results estimated that the overall ROI of the investment would be over $700K on an annual basis, giving the client the confidence and incentive to put the plan in place. At a summary level, this is what the plan looked like: