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Data-Driven Insights: An Email List is a Revenue Engine

In a previous blog, “What’s in a Name?” we talked about the importance of a large e-mail list. If you haven’t had the chance to read it yet, let me summarize: bigger is better when it comes to an email list. Growing your list on an ongoing basis should be a key part of your marketing strategy.  Let’s take a data-driven look at why this is so.

We are currently running an online acquisition campaign for one of our clients with a goal of 25,000 new eClub members. [1] Each new guest receives a Welcome message with an offer.  With over a third of the campaign complete, we looked at the data and it was even better than we expected.  Here’s a snapshot of the results, which reflect actual guest behavior:

revenue_generator

The net revenue per email tells the story.  With one offer alone, this national chain has not only paid for the entire acquisition campaign before it’s over, but has also put a value to the names on its list.  These guests represent ongoing value to be leveraged in future campaigns. 

What is the key take-away from these results? Your list is a revenue engine with a compounding factor:  the more you increase its size, the bigger is your opportunity to engage these guests to drive frequency and spend across your entire business.  This is the holy grail for restaurant marketers. And it gets even better, because email marketing delivers the highest return of any marketing channel. [2]

ROI-of-Different-Marketing-Channels

So now you know what’s in a name.  What’s next?  You just need to effectively engage your guests with relevant marketing, both offer and non-offer based.  That’s a tale for a whole series of blogs!


[1] All data captured by Fishbowl’s Offer Manager solution.

[2] Chart source: Direct Marketing Association, The Power of Direct Marketing, 2011-2012.