Using cash rewards to bring people to your restaurant

Today I stumbled upon a Web site that uses cash rewards to bring people to restaurants.

I won’t name it, but if you look in Google for Restaurant Marketing, they show up in the Sponsored links quite high (under the heading: Restaurant Promotions).

Once you go to their web site, they have this Heading: Drive Huge Traffic To Your Restaurant With A Big Prize Offer!

There are so many wrong things with this marketing approach that I don’t even know where to start…

Ok, perhaps I do, let’s try this:

  • You will spend lots of money attracting new customers.
  • These customers will go to your place only because of the Prize Offer.
  • You will probably fill the restaurant once.
  • These are bargain seekers, not quality customers (the kind of clients that you want to attract and cultivate).
  • They won’t come back again (at least that you give them more prices or freebies).
  • You will make little or not money, even with a full restaurant.
  • You may alienate your existing clients.
  • You will attract the cheapest customers ever.

Do you think that this is worth it? I really don’t think so.

Instead, spend your money bringing back your best clients. Give them incentives to come back with their family and friends. (I’ve talked about this in my previous blog, this strategy is also mentioned in detail in my Restaurant Marketing Strategies Seminar). This is the best way to spend your marketing dollars.

Forget about promotions, forget about ads in newspapers and magazines. Instead, spend your time and your money cultivating your existing clients.

If you do this, your return on investment will be always well spent. You will invest your money wisely and you will attract the best clients. If they don’t come, you don’t pay! Now this is being strategic!

Thanks for reading and happy sailing,

Jose L Riesco
© Riesco Consulting Inc.

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