Why Your Restaurant Needs a Birthday Club

Transcription

1 Why Your Restaurant Needs a Birthday Club Probably the most obvious and simplest reason for your restaurant to have a birthday club is that birthdays are so popular. People love getting birthday cards. Everyone feels good when somebody sends you a card. Over seven billion printed cards are sent annually, which is pretty good proof that people enjoy getting cards. According to the National Restaurant Association, 70% of people or adults visit a restaurant on their own or somebody else s birthday. Birthdays are the most popular occasion to dine out. In fact, it s almost double the next most popular dine out occasion. Birthdays create a lot of goodwill. People celebrating birthdays are in a good mood and they tend to light up the whole restaurant, and often bring other tables into the festive spirit. Also, many restaurants find their servers love birthday diners. Studies have shown birthday tables spend more money, and they also tip a lot better. So, celebrating birthdays are good for your business, your guests and your employees. One of the things that makes this work is that people rarely dine alone on their birthday. It's very likely they're not going to come by themselves. A few may, but most will bring friends and family to celebrate with them. So, the fact that birthdays attract groups is something else that plays into your profitability. With more birthday celebrations you get that immediate short term payback, and you get a long term payback from all the relatives and friends that may become future customers too. What if you don't have a birthday destination restaurant? You can still prosper from having a birthday club regardless of the type of restaurant you operate. One of the most successful birthday clubs we know if is in a quick serve franchised chicken operation. The owner, who is a long time RestaurantOwner.com member, told us she increased her sales 15% the first full year after starting a simple birthday club. The next year her sales jumped 23% and she claims that all of this increase was due to the success of the birthday club, nothing else. Hear the owner, in her own word tell you exactly how she did it. Unfortunately, it's estimated that only around 10% 15% of independent restaurant have any kind of birthday club and are missing out on an easy and effective way to increase their sales and profitability. Page 1

2 Use this check list to implement your own birthday club today. For more information on creating your owner birthday marketing program, view our online workshop, "Why Birthday Marketing Works & How to Create Your Own Birthday Marketing Program." Membership Has its Rewards RestaurantOwner.com is a private, members-only resource-rich website that gives you direct, searchable access to a wealth of information from top industry experts and successful operators on financial management, food & beverage, staffing, menu, marketing and startup. As a member, you'll receive 365 days of uninterrupted, 24-hour access to the Member- Only Area of our site, where you'll find: Comprehensive, professionally-designed, employee training manuals, company handbooks, job descriptions, forms, checklists, spreadsheet templates and more Online multi media seminars that will expand your thinking and give you scores of practical, proven ideas Our members-only Discussion Forum, where you can get insights and advice from industry experts and other members on business practices, marketing, employee issues, operations, technology, unique challenges and more Videos, screencasts and live or pre recorded webinars with top industry experts and highly successful independent operators Downloadable forms and checklists, plus hundreds of other templates to help you get organized and document your restaurant's unique operating systems and procedures Hundreds of easily-accessible, restaurant industry-specific articles and special reports on marketing, hiring, customer service, employee turnover, catering, cost control, financial management and a host of other topics written by the best minds in the business Free monthly subscription to Restaurant Startup & Growth magazine delivered to you each month All the content, with the exception of RS&G magazine, is available exclusively over the Internet. New content is added frequently. Join today and guarantee your access to these valuable resources. Find out more by taking a quick tour Page 2

3 Birthday Club Startup Checklist Step 1 Create a Birthday Offer It Must Have Value Nobody wants a discount as a gift. If you want to impress then give them a free meal such as any meal up to $10 value. No Strings Attached Be sure not to diminish the value by placing too many restrictions. Most recipients will bring along a guest (in fact, many restaurants realize 2.3 guests for every birthday recipient). If your birthday guest only buys a $7.00 meal and your offer is for up to $10, then take the $10 off the entire tab. Valid Anytime During Birthday Month A recommended restriction is to only accept the offer during the birthday month. This creates a sense of urgency for the recipient as well as getting a response rate that can be measured each month. Resources Webinar: How a Simple Birthday Club Results in 50% More Sales! Step 2 Design/Print Birthday Card Postcard Size Mailers Work Best Postcards require less postage and handling than do cards with envelopes. When printing on standard card stock (8.5 x11 ), it s easy to get them in a variety of sizes from 4.25 x 5.5 all the way up to impressive jumbo cards that are 8.5 x 11 talk about making an impression. NOTE: Postcards larger than 6 in length by 4.25 height may require letter rate postage. Use Eye Catching Graphics The better your card design is the higher the redemption rate will be. If you re creatively challenged, consult with a graphic designer or printer to be sure you get a professional look to your birthday card. Don t skimp on the color. Some of our members have used GotPrint.com for card printing. Front Side Should Include Offer The front of the card should include the birthday greeting, including the recipient s name if possible, your restaurant s name and/or logo, a clear description of the birthday offer and any disclaimers such as No Cash Value or No Other Discounts Apply. Back Side is for Recipient Address and Postage Be sure that you leave space for proper placement of postage and address when designing the back of the card and be sure to check USPS guidelines. For instance, an 8.5 x 5.5 large postcard must have postage placed in the upper right hand corner within a 1 by 1 square. The address area should have a ½ margin on the right side and bottom and must be printed within a 3 5/8 by 1 1/2 area of the lower right hand section of the card. Include a Map Although it s not required, it is a good idea to include a small map on the backside of the postcard. This allows your guests to easily find your restaurant. Include Contact Information It s also wise to include the phone number, address and website address for your restaurant on the back side of the card. E Card Option Should you prefer to send an e card via do a search for restaurant birthday card design. There are several web based card design programs available. Resources Birthday Postcard Template Step 3 Create Database Collection Program Page 3

4 Design Signup Form Signup forms should be simple (see example) and include a place for your guests to record the following information: Name Address City, State and Zip Code Phone E Mail Address Birthday Anniversary (optional) Opt in Acknowledgement (this is for e mail recipients) Select a Database Program The most widely used medium for building a customer database a spreadsheet program such as Microsoft Excel. The popularity of spreadsheets is due more to familiarity and flexibility than robust functionality. As your list grows you may find that a true database program such as Microsoft Access or ACT is better for analytics and targeted list segmentation or filtering. There are also many online services that allow you to upload your list. Develop a Signup Campaign There are numerous methods for getting your guests to sign up for your list. Some restaurants use several of these methods at the same time. Regardless of how you get them to sign up it is a good idea to inform your guests that you have a strict privacy policy and will not be sharing their information with others. Here are some of the methods restaurateurs have used to build their list: VIP Or Birthday Signup Card typically handed out by servers. Comment Cards The back of comment cards can include the signup form. Fishbowl Marketing Signup cards available near entrance or highly visible area allowing guests to complete the card and drop into an attractive container. Website Signup Forms Nearly every restaurant now has a website and customers almost always visit your website before going to your restaurant. This is a great opportunity for list building and there are several list signup programs available. *Buy a List If you are starting from scratch, or if you simply want to jumpstart your birthday card list, consider using a service to purchase a cold list of all residents within a 2 3 mile radius of your restaurant that have birthdays within a specific month. To find these services do a Google search on mailing list marketing. Some of our members have used InfoUSA.com. 4 Walls Marketing Be sure to advertise your campaign within your restaurant. Develop point of sale materials such as table tents, posters, banners and menu inserts to let your guests know how to sign up. Page 4

5 List Recording Procedure Be sure to establish procedures for getting the signup forms turned in and recorded to your database promptly and routinely. The most successful operators incorporate this task into their daily duties. It s also advisable to have a system to flag new entries with birthdays coming in the next month, especially if you have already mailed out the next month s cards. Signees who register after mailing cutoff date can then be mailed individually. Resources Customer Database Template Step 4 Establish Redemption Procedures Program Your Cash Register Add a discount item to your POS system that makes it easy to identify the number and amount of redemptions in the closing reports. Be sure that the sales tax is handled properly by first checking with your municipality or state tax regulatory agency for correct taxing. Most states only require you to charge sales tax on the actual amount paid for the goods or service received, whereas others want you to collect on the retail value of the sale. Train Your Staff Create an information bulletin that explains the list signup program and how to handle redemptions. It should include restrictions of the offer, how to ring on the cash register, which products are affected and how you want them to promote the program. Redemption Recording Procedure As with list building, recording the redemption should be a daily task. Have a procedure where servers and cashiers turn in the redemptions after each shift. Assign a manger or clerk to record them on the tracking form (see Measure the Results below). Step 5 Launch Mailing Campaign Designate Recurring Mail Date The most successful Birthday Clubs include an offer that is good for the entire birthday month. Therefore, it is usually the most effective method is to mail to all birthday recipients for the following month the week before that month (last week of current month). Schedule Personnel If you choose to handle the addressing and postage application in house, then be sure to set aside sufficient time and personnel so that cards are mailed on time. Hand Addressed Cards Although address labels are acceptable, many operators insist that handaddressed cards have a more personal touch and a better redemption rate. Likewise, many operators prefer affixing a postage stamp rather than meter postage or bulk rate. Record List Mail Outs Be sure to keep track of each month s mailing list. This will be helpful when measuring the results. E Mail Campaign Though many operators believe it doesn t have as high of a ROI as direct mail, e mail cards are an alternative measure for a Birthday Club distribution. Be sure to collect e mail addresses in addition to mailing addresses. Step 6 Measure the Results Track the Cost Like other direct response marketing, one of the benefits of a Birthday Club promotion is that you can track the ROI (return on investment) of monthly mailings. Use the Restaurant Marketing Promotion Tracking Template to keep track of the costs to produce each mailing, including printing, postage, advertising and associated labor cost. Page 5

6 Track Recipients Using the Restaurant Marketing Promotion Tracking Template, record the number of recipients for each month s promotion. Track Redemptions Record each day s redemption totals for the specified month. If using the Restaurant Marketing Promotion Tracking Template, the form automatically calculates the ROI. Compare Results By comparing results for each month it allows you to experiment with various discount offers to see which gets the best ROI. You can also use the Restaurant Marketing Promotion Tracking Template for tracking other types of promotions. Resources Restaurant Marketing Promotion Tracking Template Page 6