Turn off your phone, ignore all distractions, and get ready… because what you’re about to learn can potentially change your life for all I know.
Now before we begin I have three questions:
1. Do you know how to attract new customers and keep them for life?
2. Ever ask yourself how much just ONE new customer is really worth to your restaurant?
3. Do you know how much it costs you to acquire a new customer?
If you answered “NO” to any one of these questions then these next few minutes can perhaps be the breakthrough you’ve been searching for.
And here’s why…
My Goal For You
By the time you finish reading this my goal is for you to be more knowledgable, open minded, and strategic in your marketing efforts so you can win over any new customer with ease and increase your sales consistently every single month.
Now let’s get started.
Step 1: Market To Three Visits
Before moving forward I must warn you, what you’re about to hear is information stated by world renowned bar expert, Jon Taffer, in his recent interview with Gary Vee and he couldn’t be more straight forward than this:
“If you buy a guest through traditional media the cost of that guest is typically $40-$80.
So let’s say your rib dinner cost you five dollars. (food cost: the ribs, the potatoes, the platter the whole thing) I’d give out 100 coupons for a free rib dinner to people who have never been there before no restrictions.
So now Gary walks up to the front door with the coupon.
“I got a coupon for a free rib dinner I’ve never been here before”
Come on in!
First of all I don’t pay until they come…
Second, I’m paying $4.65 not $40-$60 per each customer.
And then here’s something that nobody else will tell you...
If somebody goes to a restaurant for the first time and has a flawless experience, the statistical likelihood of them doing a second visit is ABOUT 40%.
They come in a second time and have a flawless experience, the statistical likelihood of a third visit is STILL ABOUT 42%.
The third time they come, the statistical likelihood of a fourth visit is OVER 70%!
So you got to MARKET TO THREE VISITS not one.
Visit One: Free Rib Dinner
You sit them down, put a red napkin on the table. (not a white one)
Identify them as a first time customer.
Connect with them and WORK to get them back a second time and a third time.
Once They’re There The Third Time You Own Them.”
Again, the goal is to market to THREE visits, not one.
Doing so will result with over a 70% likelihood that they will return and the increase in possibility of winning them over as a customer for life!
Of course, it’s also very important to note that your food and overall customer service needs to be amazing, but you get the point.
Now let’s get to the juicier stuff.
Step 2: Your Customer Lifetime Value
(note, to access the customer lifetime value calculator you can click here)
So far we know that keeping a customer for life starts with getting them in our doors three times.
But how much is this customer really worth?
Well, to find out it’s simpler than you think!
Identifying Your Customer Life Time Value
First, we can calculate the value of an average loyal customer by taking the single sale average. (average customer spend is not your average ticket size, this is your spend per person.)
In this example its $15.00:
Next, multiply your single sale average by the repeat transaction average per year. (be very conservative here)
In this example we used 20.4 x per year (1.7 visits/month):
Then multiply that by the retention period.
In this case its about three years.
Multiply it all together and you’ll discover the Customer Life Time Value of your average loyal customer.
As you can see, in just one year a SINGLE customer is worth $306, and over a three year period they can potentially be worth over $900+ using this example!
So, so far you’ve learned:
1. The Strategy Behind Attracting New Customers Into Your Restaurant And Keeping Them For Life
2. The Real Value Of How Much A Customer Can Be Worth To Us.
That leaves us with our final step which is…
Step 3: Find Out How Much It Costs To Acquire A New Customer
Now this is really important so you’ll want to be paying extra attention on this one.
In this example we’re taking you through the “New Model” for where restaurant marketing is moving towards vs the “Old Cycle”.
(Related: What Is The “New Model” And How It Can Wildly Increase Your Restaurant Sales In 2019”)
Picture this for a second…
We start the customer journey with a Magnet Offer (in this case a free cheeseburger) to get as many butts in our seats.
We do this by running strategic Facebook ads that turns clicks into customers fast.
(Related: Free Training Reveals The EXACT Blueprint We Use To Generate Our Clients $10’s Of Thousands Of Dollars)
Food cost will vary depending on the type of restaurant but for example purposes a cheeseburger costs us $1.27:
After we get these people to come through our doors the first time, for the second visit we market to them another irresistible offer such as a BOGO Free Chicken Sandwich.
At most we probably break even from this second visit.
For the third visit we offer them a free shake (cost being $0.89 as shown above), and by this point we’ve just persuaded a NEW customer to dine with us THREE times!
So what does this mean?
For about $2.16 you got 3 visits out of them and OVER 70% likelihood for future visits.
Just imagine, $2.16 in exchange for hundreds if not THOUSANDS of future dollars in new revenue from simply understanding the value of the “New Model”.
Let’s Do A Quick Recap
After reading through and learning about how to attract and keep customers for life you now know:
I Want To End With This…
Before you leave I hope you realize that the exercises and simple yet effective philosophies you just learned and went through are constantly overlooked and not payed much attention to by most restaurant owners.
By investing the time and energy it took to get here means you’re searching for change and I highly respect that.
I wish you ongoing success on your journey to unlimited potential, and if you liked this content as much as I liked making it for you, and if you know anyone who might find it valuable then please feel free to ‘SHARE’ it”
- Restaurant Rocket Engine
“Never Get Comfortable”
(p.s. if you want to save time, increase sales & create more freedom for yourself click here and We’ll Show You The EXACT Blueprint We Use To Generate Our Clients 100-500 New Customers Every Single Month)