Previous
New service will boost restaurants' profits by building email communities
Added: (Tue Jun 03 2003)
RESTAURANTS CAN SPEND LESS ON MARKETING AND HARNESS ‘WORD OF MOUTH’ BY BUILDING AN EMAIL COMMUNITY
Restaurateurs are besieged daily by telesales people wanting them to advertise in this or that publication. They make it as hard as possible to refuse. And who wants to risk missing out on new custom?
The answer for restaurateurs is simple: worry less about getting new customers, but spend your energy and budget on nurturing the ones you already have – and they’ll do the job for you.
A Sussex marketer has come up with a new service which helps independent restaurants woo their customers back again and again. The service combines new technology with good old fashioned principles of community and belonging.
TOUGH TIMES FOR INDEPENDENT RESTAURANTS
The restaurant business is as competitive as ever, with high street chains having come a long way since the days when there was the Wimpy bar and not much else.
For the restaurant-goer, competition should mean increased choice - but not if the independents are squeezed out. Multiples such as Pizza Express, Ask and Cafe Rouge offer consistent menus, ambience and prices, so you always know what to expect. They provide the reassurance of the familiar, yet with complete anonymity.
How can independent restaurants fight back? By genuinely offering what the multiples can only offer superficially - the promise of community, the sense of belonging. These days we have at our disposal the perfect tool for nurturing community: unlikely as it may first sound, that tool is email.
EMAIL COMMUNITIES: THE OPPOSITE OF SPAM
Everybody who uses email regularly (72% of the population by latest government estimates) is sick of unwanted commercial email, or 'spam'. But when we receive email messages from friends or trusted sources - people or companies we have ASKED to email us - we often quite like it. It's well documented that far more people respond to email offers than to traditional direct mail - but only when permission has been given. And unless you ask, you'll never get permission. When was the last time you were asked in a restaurant if you would like to join its email community?
Seeing that few restaurants appear to have adopted the idea, marketing consultant Robin Houghton has launched www.diningcommunity.co.uk, a service aimed at helping independent restaurants build their own email communities in order to increase profits and sustain their customer base.
"I was amazed at the fact that I had never been asked to sign up for a restaurant's newsletter," said Robin, "and after researching it I discovered that it was mainly due to restaurateurs worrying that it would be expensive and involve a lot of technology. In fact, nothing could be further from the truth. Research has shown that retaining customers can cost up to nine times less than just trying to attract new ones. And customers appreciate the recognition and attention. So everyone is happy."
East Sussex restaurant Circa was one of the first to realise the potential of an email community. Since launching last November the membership has grown by around 100 each month. Members receive a monthly newsletter and regular offers - although Robin is keen to point out that it's not just about sales and promotions. "It's important that the newsletter is an extension of the restaurant's brand and personality. Asking for opinions and making the communication personal is important. As community members, we don't just want to be sold to - we want the opportunity to be a part of something."
Circa owner Ashley Renton-Biles agrees; restaurant takings are more than 30% up on pre-newsletter forecasts. "I've had a lot of nice comments about the newsletter," he said, "We know a number of our customers by name, and this kind of email contact between visits keeps the conversation going and increases familiarity. It also reminds them of the reasons to keep coming come back.
ENDS
Notes for editors:
Dining Community (http://www.diningcommunity.co.uk) is a new marketing service for independent restaurants from Robin Houghton.
Email: info@diningcommunity.co.uk Tel: Robin Houghton on 01273 472489
Robin Houghton (http://www.robinhoughton.com) is a Lewes-based marketing consultant specialising in online marketing for local small businesses. Email: robin@robinhoughton.com, tel 01273 472489.
Circa (http://www.circacirca.com) is an award-winning Lewes restaurant attracting customers from across London and the South East. Owner Ashley Renton-Biles may be contacted by email on eat@circacirca.com or by phone at 01273 471777.