Using targeted offers in your marketing strategy is a no-brainer. They allow you to create campaigns based on specific customer data that can increase customer engagement and create a customer who is likely to visit and spend more resulting in a higher customer lifetime value and increases to your bottom line.
Think about it. Rather than sending a generic offer to all of your customers, imagine how much more effective it would be if you sent offers to your most loyal customers that are interested in the specific item or product you’re offering.
Using targeted offers allows you to take advantage of valuable data-driven insights to drive more incremental revenue for your restaurant, increase operational efficiency, reduce costs and improve ROI. Here are several ways a targeted offer can be effective for your restaurant.
What is a Targeted Offer?
A targeted offer refers to a marketing campaign that targets certain segments of loyal customers. In order to implement target offers, which are proven incredibly effective, an establishment has to have data. But don’t run screaming for the hills. That data is readily available right in your customer engagement platform.
Restaurants may offer exclusive promotions to select customers based on a variety of data factors, such as past spending habits, order history, or even geographical location. Typically targeted offers include some sort of enticing offer to drive foot traffic such as exclusive access, a discount, a free item, or an awesome experience.
Targeted Offers Drive Engagement
The effectiveness behind targeted offers comes from sending highly relevant messages and offers to segments of loyal customers who are most likely going to engage. Using valuable data collected from your customer purchase and behavior history, allows the audience to be segmented into smaller groups that can be targeted with the right message at the right time.
For example, Dewey’s Pizza drastically increased engagement with their emails when they sent out a targeted offer to loyal customers on National Cheese Pizza Day. With that one email, they had a 6% redemption rate and a 20% increase in sales. Targeted offers really work!
Targeted Offers Are Low Cost
In terms of ROI, targeted offers are very lucrative. Let’s say it’s National Pancake Day, so you send an offer to your breakfast crowd customers for 25% off a stack of pancakes. Chances are, your customers are going to come in, celebrate, and spend money on other menu items and breakfast add-ons like bacon, sausage, etc. The offer is simply to get them in the door, and once you have them in there, their buying potential for additional food and beverages is high.
Targeted Offers Create Loyal Customers
Using targeted offers to build customer engagement and loyalty is a given. If you have certain customers that come in for trivia, happy hour, or for Wednesday Wing Night every week, recognizing them by providing them a special offer around their specific interests is a sure-fire way to keep them coming back.
Targeted Offers Can Drive Referrals
National Wine Day? National Margarita Day? A chance to celebrate something fun that your restaurant offers gives you a chance to capitalize on it, and increase your brand awareness while doing so. If you send an offer to loyal customers on National Wine Day, most likely, they’re going to gather some friends, which creates new opportunities to create more loyal customers.
The Hero Behind Targeted Offers
While targeted offers seem to be the real hero in driving sales, growth, and revenue, the true hero, and why they’re so effective, is in the data.
Targeted offers are simply the action item that’s implemented from having captured valuable customer data. We’re in a data-driven world where it’s important to know exactly who’s loving your restaurant, bar, or eatery. Insightful data and analytics that breakdown your customer’s preferences, demographics, interests, and more, will help maximize marketing campaigns, efforts, and budgets for all their ROI.
There are many tools restaurants can use in their marketing to help create loyal customers, drive sales, and increase referrals. Targeted offers are easily one of the most effective in helping you form relationships with your customers while increasing sales and driving growth.