For most restaurant chains, location is the biggest traffic driver above all else. The second biggest (and far more flexible) factor is advertising, which helps the restaurant chains to reach out to wider audiences.
Media campaigns, loyalty customer coupons and meal deals drive traffic in their own distinctive way. The key to maximizing each campaign’s short-term ROMI lies in finding the items that bring in customers who buy large, profitable meals.
In addition to short-term sales, campaigns have an impact on the company’s long-term like-for-like growth. Branding and positioning helps the company to get new customers to try the concept and increases the engagement with the existing ones.
Knowing which channels and deals resonate with each customer segment provides valuable targeting insights for marketing managers. By including weather and other external data sources, restaurant chains can predict with high accuracy how future campaigns will perform.
Tactical optimization. The main challenge in maximizing campaigns’ short-term sales impact is to bring in customers who buy large, profitable meals. This is usually a trade-off between traffic-driving, inexpensive promotions and larger meal deals with lesser traffic impact. At the same time managers should consider the amount of normal-priced sales that are cannibalized by each promotion. Sellforte’s analysis includes all externalities when calculating the sales and margin uplifts, helping restaurant chains to:
- Find out what are the most profitable items and meals to promote, when considering the overall sales performance during the campaign
- Allocate media investments between different channels based on campaign items, store locations and campaign days
- Recognize which campaign items support on-site up- and cross-selling activities
Strategic campaigns. In addition to short-term sales uplift, campaigns have an impact on the company’s long-term sales growth. Attracting new customers to try the concept, winning back old ones or increasing existing customers’ visit frequency provide strategic marketing KPIs that can be isolated from the data by comparing individual restaurants’ sales development over longer periods of time. Comprehensive analysis takes into account which items and marketing messages have been promoted and with what kind of media-mix, helping managers to evaluate campaign’s long-term impact. Restaurant chains using Sellforte’s Marketing ROI tool can:
- Evaluate the long-term impact of campaigns with intuitive Like-for-like growth dashboard
- Attribute sales and margin uplifts for branding campaigns
- Include internal and external data sources such as Google Trends, Social Media posts and restaurant reviews to create comprehensive brand value metrics
Customer insights. Understanding the customers’ behaviour and preferences creates competitive advantage that the competitors cannot copy. Presenting the right messages in the right channels optimizes the use of marketing resources, but it will also position the brand as relevant as easily approachable for its key customer segments, enhancing the user experience before and after the visit. Winning the consumers’ hearts time after time requires continuous marketing metrics that are able to calculate the effectiveness of every single message and channel, online and offline:
- Easy-to-use software for both top-management and local managers to understand what drives the results
- Improved capabilities to pilot new concepts, campaigns and marketing channels by getting yesterday’s performance metrics today
- Sales-based customer segmentation and insight on how to reach the most profitable segments
Concrete benefits for different roles in company
- See how much sales and margin each media investment drives (individual media ROI)
- Understand how brand marketing impacts sales over time
- Learn which messages perform the best in different channels
- See how media campaigns affect purchase size & value
- Predict how much sales and margin upcoming media and campaign plans will deliver
- See the link between marketing investments and bottom line result
- Learn when and where marketing can lever growth