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Social-Networking Skills

Krystal turns to social-networking tools to get people talking about the quick-service restaurant chain's food.

By David Farkas, Senior Editor -- Chain Leader, 11/1/2008

Krystal blog
Krystal Company was among the earliest of fast-food chains to adopt social-networking sites. Now, nearly three years later, other chains are catching up. Krystal's marketing team is determined to remain ahead of the curve by focusing the sites' visitors on its menu rather than its image.
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The competition is apparently catching up with Chattanooga, Tenn.-based Krystal Company. Digitally speaking, that is. “We used to have a 10-and-a-half-game lead late in the season,” laments Brad Wahl, vice president of marketing, referring to the company's Web strategy. “Now we are two or three games ahead.”

Though not for long, Wahl insists. Within the next 12 months, the 381-unit burger chain will have executed a new plan that will put it back on top. Although he won't share full details citing the competitive nature of the business, he says the interactive strategy focuses more on Krystal's menu and less on the brand itself. “Products are still the No. 1 reason people choose the brand,” he says.

Krystal gives customers plenty of opportunity to interact. Its Web presence includes pages on Facebook and MySpace and a company-run video site called thebigredcouch.com. The brand's own Web site, krystal.com, directs visitors to a variety of micro-sites in which they can talk with each other.

That effort alone puts the 76-year-old private company well beyond those of most restaurant chains, whose Web sites typically consist of history, menu, locations, store, and franchise and/or investor information.

Engaging Eyeballs

Not that such information isn't useful, Wahl acknowledges. Krystal's Web site includes similar information—only you have to click a button labeled “corporate” to reach it. Otherwise, the home page allows visitors to click through to sites that encourage interaction. “As a marketing person my No. 1 objective is to engage the consumer with the brand and give them a reason to choose it over another brand,” Wahl says.

Wahl and Senior Marketing Coordinator Tiffany Rosenberger have themselves been engaged in Web activity since early 2006 when they launched Krystal Lovers Lounge, a member forum where people can, for instance, post messages about all things Krystal (“the fries are somewhat good, but they could use some more salt!”) or watch and rate commercials.

Since then, the chain has also posted profiles on social-networking sites Facebook and MySpace and updates them regularly. In September, for example, both sites were touting the “Krystal Square-off,” a hamburger-eating contest the chain sponsors. Krystal's MySpace page lists some 1,800 friends and contains nearly 200 comments, many about the food. “I got off the plane in Knoxville from Milwaukee and headed straight to the Krystal, it's my first stop every time I visit home,” noted “Judd.”

“I love [Krystal's] page,” declares Internet marketing specialist Randy Lopez, chief marketing officer for G&M Plumbing, an ad agency in Manhattan Beach, Calif. “Their fans are utilizing it, it shows the brand, and it's really a conversation. Social media is where [the industry] is headed.”

Snapshot

Company Krystal Company
Headquarters Chattanooga, Tenn.
Units 381
2008 Systemwide Sales $415 million*
Average Unit Volume $1 million*
Average Check $6.50
Expansion Plans 20 company-owned restaurants in '09
*Chain Leader estimate

To spark engagement early on, the marketers used the Lounge to announce a new frozen beverage, asking members what they'd call it. Even though no prize was involved, the company says it received several responses. Inspired by one of the suggestions, Krystal came up with the name Purple Passion for the drink.

“We didn't do a promotion, saying whoever comes up with the best name wins. That's too old school for us,” Wahl says. Says Rosenberger: “You don't have to dangle a carrot in front of people. They want to engage.”

Initially keeping people glued to their Web site was the goal, but broadband technology, which allows rapid page views, worked against them. Today, instead of measuring length of time spent on any one page, Wahl and Rosenberger gauge combined page impressions on four of the six Web sites. “The way consumers use Web sites has changed. They want to be bombarded with many types of interaction,” Wahl says.

Krystal's Big Red Couch Web site
Thebigredcouch.com gives customers a chance to mug on camera (and say nice things about Krystal). The chain recently began lurking on Twitter.com to learn what people are saying about the company. “It is very valuable information,” says Senior Marketing Coordinator Tiffany Rosenberger.
Model Behavior

Rosenberger has been impressed with the interaction among consumers on Amazon's Web sites, which encourage people to rate products. “What they like and don't like,” she says. “I like that model. I want to put our food in more of a key role on social-networking sites. We've found that people want to talk about our food.”

The marketers know this because they monitor Web sites their visitors come from, and they look at what people say about the brand elsewhere. One site that has attracted attention is Twitter.com, a social-networking site in which users send and read other users' short, text-based posts. A recent Twitter search for “krystal” turned up dozens of product-related comments.

Wahl and Rosenberger believe organizing interactivity around their menu will put them ahead of competitors. “It's getting to people who want to talk about dessert items or big burgers or kid's meals,” Wahl says. “I want to get them talking more about individual products and less about the overall experience with the brand.”

Customer Insight, Now

If a customer wants to gripe about his or her experience at any of the four Seafood Sam's on Cape Cod, it's as easy as shooting the fast-feeder an e-mail or calling the restaurant. Both e-mail address and phone numbers are listed on the “feedback” page at seafoodsams.com.

That may be cathartic for customers, but it's a hit-and-miss proposition for the proprietors of the four restaurants, each of which is separately owned.

Jeff Lewis, however, the proprietor of the Sandwich, Mass., unit, is using a systematic approach to customer complaints at his 350-seat eatery. Today, not only is he able to respond to problems like the other owners, on-demand software allows him to gauge how well his restaurant is satisfying customers at any given moment.

He can collect the customer-response data, which is numerically weighted, 24/7 via a Web site. If a customer complaint is weighted below 70, Lewis gets an e-mail alert. Otherwise, the program e-mails him periodic reports.

The systemized process begins in the restaurant, where customers grab comment cards or go online after their visit (the card directs them to a Web site). Both card and Web site ask for the same information—questions that Lewis devised with help from Bizgrader.com, an East Greenwich, R.I.-based company specializing in customer-satisfaction software.

Questions include:

  • Was your food order taken in a timely manner?
  • Did you find the restaurant's dining area to be clean and well kept?
  • Are you limiting your intake of foods containing trans fat?

The questionnaire also invites customers to share their e-mail address for news of deals and to join a birthday club.

Lewis says that while the comment cards and Web site register complaints, it's actually a bin for data collection. “More important than the bitching is finding out what they want to see on the menu and what some items are they didn't see,” he explains.

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