One of the greatest concern’s for restaurant owners is that, offering discounts will not only cost them their profits, but also position them as being ‘desperate’ to get customers.
I am going to share with you the 3 Secrets to creating irresistible offers that will not only get new customers to stampede your restaurant. but will also increase the value of your brand.
The Right Sequence
First impressions last. If the first thing your potential customer sees from your restaurant is a 50% Off promotion, then it will very difficult to get them to try your restaurant when promotion ends. You will be forever seen as a ‘discounted’ restaurant.
That’s why it’s essential that your potential customers first become aware of your brand using social media videos. You want them to think in their minds, ‘that looks like an awesome restaurant – we should check it out one day’. Then you can retarget your video viewers with your special offer, which gives them the reason to visit your restaurant now.
Give them the reason. Tell them why you are giving them an irresistible offer. Birthdays and special occasions are a great reason to give your customers a free gift. It enhances your brand. You can also reward your best customers for their loyalty with an exclusive special offer. Another effective strategy is to ask your new customers to try a special dish that is not on the menu, so that you can get their feedback.
So when you tell your customers why you are offering something special, it positions you in a more positive way which helps your brand grow stronger.
The Two Magical Numbers (Focus on Lifetime value, not the first time sale.)
What is your CAC and CLV?
There are two numbers that you need to know before you launch any special offers.
1. What is your Customer Acquisition Cost? (CAC)
2. What is the Customer Lifetime Value? CLV)
To work out your CAC, simply divide the marketing costs by the number of new customers to your restaurant in a month.
To work out your CLV, you will need to work out the average spend per person multiplied by the number of Lifetime visitations to your restaurant.
Once you implement the Restaurant Sales Funnel, you will easily determine these numbers, as everything is trackable.
The ideal ratio between the two numbers should be 3 to 1.
That means for every $1 you spend in marketing to get a new customer; they will spend $3 during their Lifetime as a customer with your restaurant.
Now you will know exactly how much you can spend to get a new customer and still be profitable.
So now that you know the 3 Secrets to creating irresistible offers without hurting your Brand or your Profits and get started to create the Desire needed to get more new customers.