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Restaurant Marketing: Outside Looking In

Restaurant marketers can take tips from the methods other industries use to attract and retain customers.

By Margaret Littman, Contributing Editor -- Chain Leader, 7/1/2009

Using mobile technology
This isn’t “Mission Impossible” anymore: Mobile technologies, like the Bluetoothpowered Proximity Blue, can send consumers promotional messages right where they’re most likely to use them, such as the food court of a shopping mall right before lunch.
When folks with Bluetooth-enabled telephones stroll New York's Coney Island boardwalk, they have the option of getting more than just a hands-free phone call. Signage in parades, at concerts and on the T-shirts of roaming staffers entice people with promotional offers if they agree to receive an ad on the portable device in their hands.

When they opt in, they get a full-fledged ad, not just a text message, through the Proximity Mobile Marketing network with a coupon or other offer from a business on or near the boardwalk.

“Consumers like to get media on their phones and show it to others,” says Alex Teplish, president of Proximity Blue, a mobile technology marketing firm. “This is not like a traditional coupon that gets lost. Once it is on your phone, you have it, and it does not take up [physical] space.”

Proximity Blue has worked with FX Networks to promote its Nip/Tuck TV series as well as businesses in other industries, and Teplish sees many ways chain restaurants can use the technology to increase both initial customer counts and ongoing dining frequency.

During the recent economic downtown some industries have been doing worse (like banking) than others (wanna go to the movies?). Regardless of where on the spectrum the restaurant industry sits, companies like Proximity Blue show that chains can learn from the ways other industries market their products. Whether it is fashion, pet retailing or hotels, much of what is being done to build ongoing loyalty is the type that will last, which is useful in any economy.

Attract, Sell, Repeat

“The mistake a lot of restaurants make is that they seem to feel, 'Once we have them in the door, we do not have to market to them anymore,'” Teplish says.

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Vanessa Horwell, chief visibility officer at ThinkInk, a Miami marketing and public relations firm, agrees. “You do not want to focus all your spending on people who will never come in the door. The idea is not to focus only on finding new customers, but keeping those who are already in your restaurant. Do more than present the bill, swipe the card and say 'good-bye.'”

Horwell believes the restaurant industry has been too focused on price. She cites car-maker Acura, which created a network on the social-networking site Facebook for its TSX Connect. The effort helped build the TSX's image and identity, and prospective customers got to interact with those who shared common interests. In a year where car companies are struggling, Acura created buzz without emphasizing low prices.

“I do not think it always needs to be about discounts,” Horwell says. “You do not want to give away your margin because once you get to a certain price point, it is hard to go back up.”

Money Is Not the Object

Horwell suggests restaurants think about ways to reward customers with something special that does not already have a specific price attached to it. One example would be an exclusive specialty cocktail, without a regular price tag. “That would incentivize people to come in without discounting the menu or brand value,” she adds. An e-mail or text message to customers when a limited-time menu item is about to be removed from the menu would be another possibility, she suggests.

Steve Pike, chief of Orlando, Fla.-based Pike Marketing, worked for Holiday Inn, one of the pioneers of loyalty-club marketing. He agrees that restaurants don't make their rewards as enticing as other industries do. Instead of simply offering the tenth sandwich free after the purchase of nine, Pike suggests restaurant marketers think more broadly. A seafood chain, for example, could partner with an outdoor equipment supplier to offer fishing gear as a reward for repeat business.

Vicki Lynne Morgan, president of New Jersey-based Russmor Marketing Group, says the pet retailing industry has been particularly savvy at this kind of marketing with complementary businesses, such as pet food companies teaming up with a dog toy manufacturer.

The Interactive Eye

Many savvy companies are using technology as a tool to help them identify prospective customers and give them what they want. For these firms, Twitter, Facebook and mobile technologies are not the “it” strategies, but merely tools that allow companies to implement new tactics.

What consumers were doing five years ago on their computers they now do on the smart phones, Horwell says. In another five years, it will be another device, which is why marketing must be based in strategy, not media.

In addition to mobile devices, another of-the-moment medium is the electronic billboard. Casinos and amusement parks have used electronic billboards to help alert customers to long lines at specific attractions, says Andrea Waldin, vice president of marketing of Scala, which makes software for interactive digital signage.

A Smarter Menu Board

Krystal menu board
Quick-service burger chain Krystal uses digital signage to tailor its menu messages.
Waldin says chains can use the technology in industry-specific ways. The software can be programmed to make menu recommendations based on kitchen inventory. If a location is about to run out of french fries, for example, the digital signage can start promoting tater tots.

Chattanooga, Tenn.-based quick-service chain Krystal uses digital signage to maintain the '50s style for which the brand is known, as well as market specific menu items to specific customers, Waldin says. Late night customers, for example, might see pictures of snack items, while lunch customers would get offers on combo meals.

Waldin believes the technology will only become more sophisticated. Customers may be able to give a billboard demographic details or a wish list, and in return get targeted marketing messages. She adds: “I think you are going to see a lot more interactivity in ads.”

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