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Here's
An Offer You Can't Refuse
© Bill Main & Associates
The other day I received a coupon in the mail
from a local Mexican restaurant. They had just started a curbside pick-up
service and sent me a $5.00 coupon to use the next time I called in an
order. While I don't usually recommend coupons and discounting -- I prefer
a gift certificate for a specific menu item or beverage-- I'll have to
admit that this promotion got my attention, and my business.
Why was this an offer I couldn't refuse ?
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1st
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I'm already
a customer, visiting every month or two, so there was no risk. The
food quality, portion size, and store location were all known commodities
to me. |
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2nd
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:
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I'm familiar
with their menu's price points, and a $5.00 coupon is a great incentive.
I used my coupon toward a $16 lunch ticket for two people. |
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3nd
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The offer was
simple and easy to understand: valid with purchase of $10 or more,
cannot be used with other promotions or coupons, and no fine print
to get trapped in. |
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4th
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It was a high-quality
marketing piece. The 4-color, glossy postcard made a classy impression.
Not something I would throw away without reading. |
Now, you may be thinking that's a big incentive to give to a customer who has already demonstrated a willingness to pay full price. But I tried the curb-side service and liked it. Then four weeks later I received another $5 coupon -- a "Thank You" for trying the curbside service. And this time the coupon came with a second $5 coupon for me to give to a friend or colleague! Nice touch.
I've visited three times lately, and the curbside service is becoming a habit with me. (I think that's exactly what this savvy restaurant owner had hoped.) The result? Consider your own operation.... If your average customer frequents your restaurant once a month (12 times a year) and you can increase that frequency to 13 times a year, you will experience significant improvement in gross sales.
Do the Math:
$16 (average
per cover)
x 12 visits
= $192 + $16
(bonus visit) = $208
- $3* = $205
That's a 6.8%
increase in sales. For a $500,000
operation that's $34,000
-- an offer you shouldn't refuse!
* Average cost of the promotion and coupon per cover. Most coupons are credited against more than one cover.