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Do You Know How Much It Costs to Get a New Customer?
Howard Tinker • March 31, 2015
Know What It Costs To Get A New Customer
How much does a new customer cost?
This restaurant marketing tip will help you understand how much it costs to get a new customer. Most people don’t know this number. If I was to ask you how much your wine or meat costs, you’ll be able to give me a number. But, if I were to point to somebody in your dining room and ask, “how much does it cost you to get that person in here?” you probably wouldn’t know.
To achieve this restaurant marketing tip, you need to look at your marketing strategies. For example, if you put an advert in a newspaper on Thursday and spent $500 on that ad, and you know for a fact (through tracking) it has brought 10 people in over two days, then each person that comes in costs you 50 bucks. So the cost on getting ‘A bum on a seat’ from that strategy is $50. Now you know how much it costs to put somebody into that seat using this specific marketing strategy.
Alternatively however:
- If you do radio advertising, it might be $200 to get a person on a seat.
- If you do a joint-venture with another business person, it might cost you maybe $5 to get that person to a seat.
- If you do marketing out to your database, it might cost you 50 cents.
So make sure that you really understand how much it costs to get somebody into your restaurant. By choosing the marketing devices that are best for your restaurant, you create a position of power that can manage your resources more efficiently. It may be the cheapest strategy (going to your database), or maybe the strategy that brings your desired clients in (a joint-venture with somebody) that really yields the greatest results for your restaurant.
TAKE AWAYS:
- Knowing this number changes how you think about your business.
- This gives you great negotiating power with sales reps.
- This will save you heaps of money in marketing costs.
- This will give you real insight into what is working and what isn’t.
- This will encourage you to do “smart marketing” not knee-jerk marketing.
- This can give you real power over your competition.
Want to know more about marketing your restaurant? Book in for a quick, no-obligation chat with Howard by clicking the button below.
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