The average consumer spends 127 minutes every day emailing, using social media and fiddling with the latest applications. If people spend this much time on their mobile devices, it makes perfect sense for restaurants to leverage this vehicle to offer discounts and promotions. Mobile promotions are a stroke of marketing genius for merchants because they a vehicle to acquire new customers and up-sell existing ones. From there, it’s up to you and your team to close the deal.
Mobile Coupons Really Work
Mobile coupons work just like traditional ones, except consumers receive their discounts via a mobile app instead of in paper form. This is advantageous in many ways.
- Mobile coupons are easier to track and evaluate return on investment
- Customers don’t have to clip, print or keep track of coupons
- Businesses save money because sending coupons via phone is cheaper than printing and mailing them.
- Patrons get their coupons in real-time.
According to a Juniper Research Report, the redemption value of mobile coupons will exceed $43 billion by 2016. Also, families earning more than $100,000 yearly are more likely to redeem coupons vs. households making $35,000 or less. So when enterprises send out mobile discounts that target people with more expendable income, they get a better ROI.
Mobile phones are more than just a way to chat it up with friends. These devices are a way of life for many people. Businesses that jump on the mobile-coupon bandwagon can increase revenue and reward their customers for their continued loyalty. Here are four tips you should know when you design your next coupon promotion at your restaurant:
Step One: Time the Offer
Understand the ebb and flow of your business and take the time to customize your promotion accordingly. Take the time to research when your establishment is busy, slow, and has perishable inventory. If you always sell out of your famous BBQ Brisket, don’t run a discount on it!
Step Two: Know Your Average Check Value
Knowing how much the typical customer spends in your restaurant is essential to guiding your offer promotion strategy. Coupons can help your business grow in two ways: increasing customer’s willingness to order more food and bringing in new business. In order to strategically create a promotion, you first need to know what the average check price at your establishment is.
Step Three: Strategically Pick an Offer and its Value
A coupon offering a 50 percent discount on orders over $20 will do you no good if virtually all your customers spend only $10. A great coupon needs to offer a price point that’s actually valuable to the customers. If your trying to maximize revenue from existing customers, you need to offer values at the ‘end of the ticket,” meaning deals on items customers might add to existing orders
To build interest in a new menu item or draw new customers to the store, you’ll need to accept some short-term losses. Offering great deals on new products may hurt your margins in the short term but allows your food to speak for itself.
Step Four: Set the Length of Promotion and an Expiration Date
Timing can make or break a promotion deal, so plan wisely. If your products are associated with some kind of event or season, you can generate free publicity and brand awareness by piggybacking promotions. For example, some pizza chains have had huge success offering single day coupons on local football game days. The short timeframe generates exciting and creates a “use it or lose it” attitude that inspires customers to buy.
Every coupon offer should have an expiration date, or you might find yourself discounting when somebody digs up an ancient coupon ten years from now. Choose a date that’s memorable, like the first of the month or a major holiday. Memorable dates will stick in customers’ minds and remind them to get to your shop before they lose their deal. Always include a year on the expiration date to avoid confusion.
Now that you’re a master at structuring offers, learn Our Five Best Tips for Push Notifications.