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by Speedline Solutions
Speedline Newsletters offers interesting thought about saturation vs.
customer database targeted.
Direct Mail Primer: Understanding Database Marketing & Saturation
Mailing
Did you know that targeted customer marketing programs typically
return up to 7 to 10 times more responses than saturation mailing? And at just a tiny fraction of
the cost.
Using the database marketing tools built into SpeedLine POS, you could increase sales to your
existing customers with response rates of 10 to 20%. The average response rate for our automated
SpeedMail direct marketing service, for example, is currently 22%.
People are often skeptical of those numbers because they are more familiar with “saturation”
techniques such as doorhanging and bulk mail. Saturation and targeted database marketing are both
essential parts of a successful restaurant marketing plan. But they are two very different
animals-with different purposes.
Saturation Marketing
Saturation marketing techniques, such as bulk mail flyers and doorhanging programs, are designed to
bring new customers into the restaurant. They target entire neighborhoods or zip codes in the
restaurant’s immediate trade area. Since, on average, response rates for this type of marketing run
between 1 to 2%, saturation mailing requires high volume for success.
Customer Database Marketing
On the other hand, customer database marketing from a POS targets existing customers to increase
sales by building loyalty, frequency, and order value. Database marketing programs can be designed
to encourage repeat business from new customers, increase sales to loyal customers, or recover
customers who are potentially lost to the competition.
While saturation marketing depends on volume, customer database marketing depends instead on
frequency and consistency. Instead of 5,000 flyers, you may mail a few hundred letters or
postcards. Although the cost per piece will be higher for targeted customer mailings, the overall
cost is a fraction of what you might spend on a saturation mailing - and return rates are much
higher. A regular program of customer mailings to new customers, frequent customers, or lazy
customers can increase total sales by as much as 5 to 15%.
A marketing plan that includes both saturation marketing and customer database marketing will
produce consistent results.
Jay Conrad Levinson’s book also refers to follow up as one of customer biggest frustrations
(unhappy factors)
Re-inviting or following up with past customers builds relationships. Happy
marketing.
SpeedLine Solutions
Restaurant companies choose industry-leading POS technology from
SpeedLine to make their businesses more profitable and efficient.
Established in 1990, SpeedLine delivers point of sale and enterprise
management software for growth-minded restaurant owners and multi-unit pizza, fast casual, and
quick service chains.
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