Pubs and restaurants in the UK always experience a slump in January and February, a combination of wallets squeezed by Christmas, and dark nights and miserable weather keeping potential customers indoors. However, brands who are embracing loyalty marketing campaigns through new media are reaping rewards at this difficult time. It's important to consider how compelling offers can lead to increased loyalty, and ultimately, bolstered bottom line sales.
‘April is the cruellest month’, said T S Eliot, but I’m sure most publicans, restaurant owners and retailers would suggest January gives it a run for its money. After all the excesses and over-indulgence of the festive season, everyone creeps indoors, closes the curtains and hides away until they’ve paid off their debt and the temperature has crept back into double figures. This is bad news for the hospitality and retail sector as staff and rent still need to be paid. However, all is not lost – by thinking creatively and being innovative, customers can be enticed in and encouraged to spend money.
All customers like to think they are getting a good deal, and are somehow being treated more favourably than their peers. Another thing all customers love is great service. You only need to look on social media sites like Twitter to see how frustrated people get when they feel they have been treated unfairly. The key to satisfying these two needs is through loyalty programmes. If you have to leave the house in the dark and rain it needs to be to enjoy a night out, or buy a product that is more than the run of the mill.
Loyalty marketing does not have to be complicated. I’ve been working in the sector for years and one thing I have identified is that the simpler the deal, the better. So in January, rather than offering a complicated deal where the consumer has to put in a significant amount of effort, why not run a ‘buy a main course, get a starter free’ deal, or a ‘20% off shoes on a Tuesday’. Communicate with your customers through e-marketing, or via social media so they don’t have to worry about bringing any additional flyers or leaflets with them – the information is all available on their smartphone or tablet. We have worked with hundreds of pubs, shops and cafes who are astonished at how such a simple technique can bring customers flocking through the door and really boost their bottom line.
Once you’ve lured these customers in, don’t forget about them – you have their contact details and basic information about their preferences, which is gold dust in terms of marketing. Remember, February can be pretty bleak too, and you can’t rely on Valentine’s Day to bring in the punters. The beauty of a loyalty programme is that all your customers’ activity is stored online and can be easily analysed. So when a customer responds to one of your email communications and comes in to spend some of their hard-earned cash, thank them for it. Send an email or an SMS the next day letting them know you appreciate their custom, and offering them a further 25% their next meal. And when they sign up in the first place, make sure you get a few basic details from them, such as their address and date of birth, so you can send them a special offer on their birthday, or let them know when a new branch of your shop or restaurant in the chain is opening nearby. This personalised relationship building is what is crucial to the success of loyalty marketing, making customers feel special and locking them in for the long term.
Encouraging customers to visit in January is all about making them feel special. Technology has afforded organisations the luxury of understanding their customers and knowing what makes them tick. And these individuals are only too happy to let you know a bit more about them in return for a good deal. So don’t give up as 2014 kicks off. Invest some of the profits made over the busy Christmas season into developing some simple, yet compelling loyalty marketing offers. It may seem like you are giving away your product for free, but within a short time, you will see an immediate return on the investment, and continued update of offers will see those valued customers flocking back for more throughout the year.
By Ben Chesser, CEO of Footfall 123.
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