By Brian Mattingly, May 23, 2016.
I recently conducted an interview with a Welcomemat restaurant customer. The goal was to learn, better understand, and get into his mind as a restaurateur.
During the interview I asked, “what is your number one goal for the rest of this year?” Without hesitation, he said more traffic, more customers in my restaurant and more revenue.
As with most local merchants and local business owners, new customer acquisition is paramount in enabling them to hit their business goals. While new customers and more restaurant traffic can be directly connected to more revenue, the amount of revenue brought in by new customers can vary significantly.
I quickly want to unpack two very important ideas when it comes to new customer acquisition – the first is, not all new customers are of equal value, and the second is, the importance of tracking and measuring where high-valued new customers are coming from.
To understand the importance of the high value customers, consider the 80/20 rule – 80% of your sales comes from 20% of your customers. High value customers are regular, repeat visitors, paying full rate who are raving fans of your brand, ultimately creating growing word-of-mouth and social circles for your brand – these are the 20% that create 80% of your sales. Wouldn’t it be ideal if all new customers that you acquired for your restaurant became this high-value customer? What would you be willing to pay for this type of consumers? What is the value of one of these types of customers?
High-value customers are harder to find but are out there. Consider someone who has just moved into your trade area and hasn’t found their favorite burger restaurant yet – a new mover. What if you were to invite them in try you out….and what if you gave them a complimentary burger as a gift from you? Now you have the chance to blow their minds with an amazing gift, strong customer service and high quality product. If executed well, this can easily be a new high value 20%er.
Secondly, how are you as a restaurant owner tracking your new customers acquisition? I took the headline picture attached to this piece during the interview I conducted with the restauranteur. He had just finished explaining to me that he still has to manually count each and every coupon and promotion by hand that comes through his door to ensure that he is getting the proper cost per acquisition from specific mediums. His POS system has some features but there is still a void when it comes to exact measuring. Tracking and measuring are extremely important and automation in the restaurant and retail industry is still underwhelming.
Couple new, high-value customer acquisition with automated tracking and you have the winning formula to achieve that number one goal of more revenue.
After my interview with our customer, I thanked him and reminded him that by using the Welcomemat program he was both bringing in high-value customers (the 20%ers) and the automated Welcomemat tracking was allowing him to spend time in places other than counting promotions in his office.
About the author:
Brian is our Founder & CEO and is passionate about helping businesses get a head start on their new mover marketing strategies.