Before you decide on your offers, decide what your goal is for each group of customers.
For instance, it’s not that uncommon for a regular customer to let 30 days go by between orders. So for your 30-day lapsed customers, you may want to go with an offer like a meal deal that drives a larger order value – or you may want to use the postcard to hook these customers on a new, high-margin menu item. Even if the redemption rate is a little lower, these types of offers can often make you more money.
On the other hand, for first-time customers and customers who haven’t ordered in 90+ days, the number of people who redeem the offer is a lot more important than the one-time sales revenue from a single postcard mailing. The lifetime value of these customers is worth digging a little deeper to get more of these people back into your restaurant. So in these cases, design an offer with a high perceived value that will give you a second chance to establish a relationship with your new and recovered customers.
A couple of years ago, when we were piloting our database marketing program with a group of pizzerias who use SpeedLine, we tested more than a dozen different offers.
I took a look back at the results from one set of test mailings.
Of those, the best performers were:
- a free 10-inch pizza with no purchase necessary (40% redeemed at an average order value of $13.10 for $629 in reported sales), and
a card with two offers: 3 medium 1-toppings for $14.99, and 1 Large 1-Top for $7.99 (24% redeemed at an average order value of $26 for $1988 in reported sales).
Other key factors in the most successful mailings tend to be:
- A simple, clear design (multiple offers can work okay, but not if the card is crowded or hard to read)
Personalization: including the customer’s name and/or a personal “letter format†message from you as the restaurant owner/operator worked well in all our tests.
Incentive to act now: for example, the top offer above expired in 2 weeks.