Imagine if just 3 new birthday customers visited your business per day with a $75 transaction. How would that help the bottom line of your business? It would increase your business by $6,000 per month and a $72,000 per year!
#1 - A TYPICAL COUPON
#2 - A MUCH BETTER APPROACH
|B. Circulation / Distribution||45,000||2,500|
|C. Cost of media||$600.00||$149.00|
|D. Cost to reach prospect (C÷B)||1.33¢||5.96¢|
|F. Cost per Response (C÷E)||$4.80||$1.19|
|G. Response Rate (E÷B)||0.28%||5.00%|
|H. Target Market||Suspects||Customers|
Option 1: Mass Mailer
In this case, the mass mailer is “marriage” mail - something similar to Valpak or Money Mailer. Depending on the location in the country, you can reach 45,000 for about $600.00. In other words, the cost to reach each house is about 1.3¢ each.
Let's say you send a Valpak coupon and 125 responded - a 0.28% response or one quarter of one percent. Not bad, actually for a mass mailer that's not specifically targeted to a particular segment or group. (By the way, the response of any media, of course, depends on your offer and the media. There is no "standard" response rate... there's just historical data that might help you make an educated guess.)
To get 125 people to respond, it cost $4.80 per response ($600.00/125=$4.80). Most of the people who respond are suspects. And most of the people were not expecting or "opting-in" to receive Valpak. And to many people, any kind of unsolicited mail is considered junk mail.
Option 2: Text Messaging
In this example, you texted 2,500 people who joined your birthday club. I realize that 2,500 is far less than 45,000 but do the math and imagine what would happen if you could text a larger number of people.
All 2,500 people opted-in or in other words, each of them specifically asked to receive messages and offers from your company. I'm sure you can do better than an 5.00% response rate because I've seen it first hand... but for the sake of argument, let's just say that 125 out of 2,500 responded. Look at the numbers compared to sending out a mass mailer:
Bottom line:Costs are lower and responses are higher when you have
BDAY CLUB IS...
Hands-Free.Your guests, not you or your employees, enter their information into the birthday club. Easy!
Automatic.Your guests receive a text on their birthday inviting them into your restaurant for your offer.
Affordable.Your out-of-pocket costs start at just $49.00 per month.
100% Opt-in.Your guests, not you, choose to join the club. How many other advertising mediums are 100% opt in. None!
Simple.You hand every guest a sign up card and they enter their information. You don't have to do any work.
Fast.Your guests just text BDAY to your text line (in your area code) and we prompt them via text what to do next.
GIVE IT A TRY...
Give this card (with your info) to EVERY guest who visits your restaurant
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