I am spending a lot of money advertising. We have about 100,000 people in our metro area. We have 23 pizza companies including the chains. For pizza, I really only have 3 good competitors, but everyone takes a bite.
After 14 years I still hear people say they didn’t know I was here. So I bit the bullet and hired the Wizard of Ads group to help me change that. I raised my radio spend from $500 to $2,300 per month for a year. Thats the short story.
I have 1100 reward members who spend $380 per year. My goal is to get to 2500 members which should generate about $900,000 in anual sales. The big picture goal is 5,000 members. It costs less to keep them than new customer acquisition. I spend $600 to $1000 per month advertising to my rewards members.
My best new customer acquisition campaign: I advertised a free small cheese pizza in the good news paper (about 18,000 people). I made it look like a newpaper article. The headline was “Is this Man Crazy”. We have really good cheese. At the time a cheese pizza cost me $1.50. Pepperoni or any other extra topping were only $1. The extra topping generated an extra $1,100.00 in sales which paid the food cost for the whole campaign. The add cost me $700. We gave away 550 pizzas and my sales increase 19% for several weeks after that.
