pizzapad:
Here is another thought…
What do most people think is the top, or at least a top two as a BEST marketing source? I’d say I consistently hear…WORD OF MOUTH.
You will not get this unless you produce, not good but GREAT product and GREAT service. (not the best coupon gimic - however that will create VOLUME) I have heard customers say time and time again…Oh they have an AWSOME product that is why we go there. Or their staff is incredible, no matter how busy they are they always have time to interact with the kids.
I would all out agree that you cannot beat word of mouth for generating customers. The only problem that I have foudn is that I cannot plan it, direct it, schedule it or measure it very effectively as a business man. I can do lots of things to influence it or make the conditions more conducive for it, but that is the best I have been able to manage myself. Others may have different experiences.
pizzapad:
Additionally, there is a difference in a pizza shop less than 1 yr old and a shop in the 5th yr. There shouldn’t be a need to market AS much for the 5yr shop UNLESS the product & service are not reason enough for guests to return (IE poor quality or poor service). AND even if your guest feels u got the best pie in 30 miles, if you give poor service or rude service you may loose them 4ever!
Just my take…
I have found that I market MORE in my 3rd and 4th years, and more importantly I market DIFFERENTLY. I have to spend effort and money maintaining and retaining loyal customers, as well as increasing their impact on my revenues. Existing customers offer a ripe environment for upselling and increasing frequency. This is a whole different tactic and direction than generating new customers.
I still have to spend effort generating new customers to develop growth, and replace the attrition. This will vary from market to market, but customers move, lose interest, get allergies, have medical conditions, and some will die. Somehow one has to account for the 10% to 20% turnover each year of the customer base.
The marketplace changes based on demographics, family groeth due to births and people moving into households, job improvements and posses, new construction, nearby inflow of people, changes in property taxes, new officials elected, new ordinances, new competition moving into the area. There are hundreds of things that will impact my marketplace each year that I pay attention to and include in my business plan review . . . . as well as my marketing plan.