RESTAURANT INDUSTRY - INSIDE - DataCore ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Marketing solutions for the
RESTAURANT
INDUSTRY
INSIDE
How to generate
awareness, drive traffic
and boost sales!
“ I don’t believe that direct mail
will ever be replaced. You can’t
refute the evidence that we got
from our lift.”
– Sharron Fry, National Marketing Manager, Burger King Canada
For more on how Burger King uses direct mail, see p. 13.
2
INSIDE
4 A message from our CEO
Our mission: to help you rebuild
10 Reaching audiences
that matter
16 Getting started
Using direct mail to drive results
your business Key generational insights so you for your business.
can tailor your message.
6 State of the industry 18 Finding an expert partner
5 key marketing challenges 11 Success stories No matter your campaign size
facing restaurants today. How restaurants are using or budget, they make targeting
direct mail. and execution easy.
8 The power of physical
14 Q+A with Marble Slab’s 19 Your direct mail
How direct mail can boost
your business. Marketing Director design checklist
Why this global company will What you need to do for the
never stop using direct mail. best results.
3
A MESSAGE FROM OUR CEO
“Our mission is to provide
you with actionable
insight you need to thrive
and we have the tools
you need to do it.”
– Doug Ettinger, President and CEO, Canada Post
At Canada Post we are committed to We believe that direct mail – what we various audiences. Your in-house
supporting the growth of Canadian call Canada Post Smartmail Marketing™ information, Canada Post consumer
business. We know you’re anxious to – is the best choice for quick serve insights, and data from third parties,
move your business forward after the restaurants like yours. That’s why we can help you find millennials, empty
recent and unprecedented setbacks created this important resource about nesters, families and other demographic
suffered by all sectors of the economy. how direct mail can help you overcome segments with the most potential.
We know you want to get customers the challenges and take advantage See page 10 for specifics on how to
back to your locations and enjoying of the opportunities you’re facing zero in on them.
your food. And we know you’re right now. These are the ingredients you need
doing all that while facing Our mission is to provide you with to make your campaigns – and
increasing competition. actionable insight you need to thrive your business – more successful as
Marketing will be a key. But with so and we have the tools you need to do communities and the economy recover.
many options in marketing today, it’s it. Restaurants across the country are
hard to know what approach will using them and getting results. You’ll
deliver the best results. How do you see how when you read the success
best reach the guests and patrons stories from Arby’s, Burger King and
who will build your business? How do Marble Slab starting on page 11.
you cut through the clutter to get These stories show you how to use
people’s attention? direct mail in your campaigns to target
4
“If you want to drive traffic and move sales,
Neighbourhood Mail™* is the ideal solution
because it’s measurable and it works.”
– Tony Balakas, Owner, The Park Kitchen and Bar, Calgary
*Canada Post Neighbourhood MailTM was formerly referred to as Unaddressed AdmailTM.
5
5 key marketing
challenges facing
restaurants today
Restaurant food is an everyday enjoyment Canadians are happy to spend
money on – as long as it’s convenient, the quality is high and the value is
strong. Quick service restaurants (QSRs) offer all that, which explains
why this industry is the largest food service segment in the country.
Nevertheless, recent events have also impacted QSRs – rebuilding in
the recovering economy presents new realties and challenges.
6
QSR is a high-volume, low-margin enterprise that depends on staying
top-of-mind and driving traffic. Here are 5 driving forces to consider.
1 3
Disruption Appealing to
The recent crisis caused unprecedented disruption various demographics
to the quick serve restaurant industry, closing Who goes to QSRs? Everyone. From teenagers
doors to patrons and reducing your business to boomers, from single millennials to parents,
to takeout and/or delivery. Add that to the your patrons represent all demographics. That
disruptions already facing your sector. presents a marketing challenge, since each of
those groups responds to messaging differently.
Technology has become a key to your business Where you find those potential guests, how
and you have to keep up to keep the doors open. you get their attention and drive them to
Many QSRs have their own apps to increase engage with you has to differ from group to
customer convenience, so the expectation for that group. For more on how to speak to all of
technology is growing. If your company doesn’t them, see page 10.
have an app yet, it should have one soon.
4
Well before the recent crisis, delivery apps were
disrupting the QSR industry, changing business
New marketing
patterns and impacting your cost structure – but channels
also providing new marketing opportunities. Connecting with prospects and clients has
never been more important. It’s also never
2
been more complex. Will investing in digital
Increased competition and social channels deliver profitable returns?
From classics like burgers and pizza to What’s the best way to reach the kind of
international fare and adventuresome audiences that can move your business
offerings, the number of restaurant locations forward? And, once you’ve won a new client,
is on the rise. With over 31,000 casual dining what’s the best way to build your relationship
restaurants across the country today, and 2% with them and retain their business?
annual growth expected until at least 2023,1
you need to work harder to stand out.
5
More to do, less time and money to do it
Nevertheless, recent events have also impacted QSRs – rebuilding in the recovering economy presents new
realties and challenges. The solutions for acquiring new customers and driving business need to cut through
the daily clutter and work to drive your bottom line.
The good news
These challenges are also opportunities that you can seize. Keep reading. In this resource we’ll show you how direct mail
can be used, targeted and integrated with digital to help you better connect with the audience that is important to you
and your bottom line.
1. IBIS World, Fast Food Restaurants in Canada - Market Research Report,
www.ibisworld.com/canada/market-research-reports/fast-food-restaurants-industry/
7
THE POWER OF PHYSICAL
How direct mail can
boost your business
When it comes to marketing for restaurants, direct mail is unlike any
other channel. It cuts through the advertising clutter and gives you
what you need most – results. That’s why even in the digital age,
it remains the go-to channel for the restaurant industry.
STAY TOP-OF-MIND MAXIMIZE TRAFFIC
The numbers: When you add direct DURING PROMOTIONS
mail to your digital campaigns, you The numbers: 79% of Canadians
drive 39% more attention, 10% save print advertising brought into
higher brand recall, and 5% greater the home, 68% of us are likely to
emotional response. share that direct mail, and 34% of us
The insight: The QSR industry in always or sometimes display advertising
Canada had been growing steadily mail of interest to us at home. That’s
since 2014 and remains on a solid a lot of opportunity for sustained
footing. But now, as never before, it is brand exposure, reminders of
important to let customers know that location openings, and special offers
you are open and operating – and and coupons.
how you are operating. The insight: Coupon redemption
can be an important driver of QSR
The tip: Use direct mail to make sure success – a third of people’s buying
customers know that you are open and decisions are based on deals and
operating with public health measures special offers. Not only can coupons
in place. You can also make them aware lead to new and increased sales, they
of promotions and encourage can lead to new customers.
repeat visits.
The tip: Use multiple channels to
support promotions. Complement
digital campaigns by incorporating
direct mail to reinforce your message.
8
DRIVE CUSTOMERS ONLINE EXTEND YOUR REACH Integrate your mix
The numbers: 64% visited a website The numbers: More than 1.9 million
after receiving direct mail1 and 54% Canadians live in apartments or condos Did you know that, compared with
engaged with social media after and only Canada Post delivers mail to single-media digital campaigns,
receiving direct mail.2 those addresses. integrated direct mail and digital
campaigns elicit significantly more
The insight: Technology has become The insight: Many of your
attention?
a central part of how people access high-frequency customers live in
QSRs, whether ordering directly online apartments and condos. In large It’s true. People spend 186% more
or using delivery apps. Both offer urban centres, you’ll find singles, time with integrated direct mail
added convenience for your customer, millennial couples and retired and display campaigns than
and they also allow you to capture boomers in residential towers. display-only campaigns – that’s
valuable data on your guests. 40 seconds vs. 14 seconds. The
trick to successfully integrating
The tip: Get results by using direct
your mix is to ensure items online
The tip: Use direct mail to encourage mail in a target-rich environment
have the same look, feel and tone
website visits and app downloads. like this.
as the items you send in the mail.
1. Swiss Post. Comprehensive Mail Study, 2014.
2. Royal Mail MarketReach. The Private Life of Mail, 2015.
9
Reaching audiences
that matter
Your customers come from different generations, and those age groups
may respond to your messaging differently. It’s important to understand
how each of your key customer groups will respond to your various
advertising channels.
Millennials and their preferences are a key driver of growth in food service sales. They’re motivated by having an experience
and they crave food innovation. They’re driving change in your industry by insisting on delivery via an app, the ability to
pay with their phone, and menus that change regularly. With more disposable income than Gen-Xers and boomers, they’ll
reward businesses that adapt to their preferences.1 Here’s what you need to know to cater to this discerning cohort.
Direct mail and millennials
Don’t believe the myth that millennials only react to digital. Research shows they eagerly engage
with print because they value the physical and have a desire for real experiences. Here’s what we
know about how millennials engage with direct mail.
44 % 42% 50%
91% vs. 75% keep promotional are excited to see
mail pieces for what’s in their
future reference. physical mailbox.
of millennial respondents of millennials in young of millennials with-
81%
were driven by print or families engage with out kids engage with
direct mail promotions. print or direct mail print or direct mail use a physical method
promotions. promotions. to follow promotions.
GENERATION X BOOMERS
For time-starved parents, the convenience QSRs deliver on value and opportunities
of QSR satisfies. to socialize.
84% use a physical method to follow promotions
42% were driven by print or DM promotions
46% keep promotional mail pieces for
future reference
1. Restaurants Canada, 2018.
1010Success stories
How are businesses using
direct mail today and, most
importantly, is it getting the
results decision-makers want?
The answer is yes. For everything from sales lift to customer
acquisition and coupon redemption, restaurants across the country
use direct mail and can attest to the fact that it works. Here’s how
three recognizable brands put it to work for them.
11Success stories
Canada Post
Neighbourhood Mail
more than pays off for Arby’s
A Smartmail MarketingTM campaign generates a redemption
rate nearly 50% higher than a free-standing insert campaign.
He compared the results with those of CLIENT NOW COMMITS
an earlier free-standing insert (FSI) TO CANADA POST
campaign. At that time, 45,000 of the
same offer coupons were inserted in a
FULL-TIME
Windsor daily newspaper, with an With those results, Laughton decided
additional 45,000 in ad bags and to leave the newspaper and commit
15,000 in community newspapers. to sending out 117,000 pieces of mail
What happened? Laughton saw a 3.7% each month. It was a smart decision.
redemption rate with Neighbourhood When Canada Post studied the
Mail versus a 2.5% redemption rate with behaviour of ad mail recipients, it
the FSI campaign. found that 75% of millennials – those
fast-food-loving consumers who rarely
That’s clear evidence Neighbourhood
subscribe to newspapers – read, share
Millennials are engaged with the advertising mail Mail works, but since costs are lower
and display the ad mail they receive.
they receive. At least 75% of them read it, with FSIs, Laughton wanted more
share it and display it. “Arby’s overall sales are greater and
proof. He decided to alternate the
advertising channels monthly and traffic is better,” said Canada Post
noticed sales in his restaurants were Sales Representative Franca Pheby.
REDEMPTION RATES significantly up in months in which “Direct mail puts your brand into your
HIGHER FOR DIRECT MAIL; he’d done the Canada Post mailing. customers’ hands, and increases the
SALES EVEN HIGHER “We’ve had positive experiences with motivation response. That’s why
Canada Post from the word go,” Windsor Arby’s is staying with us.”
In early January 2016, hoping to increase
sales and brand awareness, Arby’s Laughton said. “There were more Laughton agrees. “We’ve had proven
franchisee Brian Laughton conducted a coupons coming back from Canada results: Returns are an average of
test to see which advertising channel Post, but the convincing detail was 20% higher with Canada Post
delivered the most bang for his buck. the way those mailouts influenced Neighbourhood Mail,” he says.
Using Canada Post Neighbourhood Mail the top line.”
service, he sent 117,375 coupons to Coupons
Campaign Quantities redeemed
homes within a 5km radius of his
Canada Post
restaurants in and around Windsor. Neighbourhood Mail 117,375 4,335 50%
Free standing inserts 105,000 2,668
12Success stories
Coupon offers get
more enticing when
Burger King® adds science to art
Predictive eye tracking analysis and refined targeting increase coupon
redemption rate by 26%. Adjusting a layout or refining targeting may be
all it takes for your mail campaign to capture a bigger market share.
APPEALED WITH SCIENCE TESTED AND PROVEN
In March 2015, Burger King Canada The Burger King direct mail piece was
underwent a major digital makeover, put to the test with predictive eye
revamping its website to be mobile- tracking. Some modifications were
friendly and aligning it with the brand’s recommended, such as increasing
new global visual identity. The focus was contrast around the call to action,
on digital, but Burger King knew that in keeping the main offer coupon close to
the QSR business, coupon mailers are a the tagline, using simple background
proven marketing tactic that brings images, and increasing the number of
people in the door. Did their coupons coupons included in the self-mailer.
need a fresh look, too? Using Canada Post’s Precision Targeter™
At the time, Sharron Fry, National Marketing tool, Burger King also changed its By showing the visual path (green to red areas), predictive
Manager for Burger King Canada, heard targeting approach, applying several eye tracking allowed Burger King to measure the amount
of attention their offer's key elements would get and to
about predictive eye tracking from demographic filters and using driving
know which modifications to apply for higher results.
Canada Post Senior Sales Manager distance from its stores, instead of
William Washington, and it piqued her radius. The new criteria uncovered
interest. A follow-up meeting with Diana neighbourhoods with strong potential
Lucaci, head of the neuromarketing for the quick-service restaurants. MOUTH-WATERING RESULTS
research and strategy firm True Impact All in all, the costs involved were minimal, + 26% in redemption rate
Marketing, convinced her. “Predictive eye but the results were maximized. “Even + 46% in gross profit on coupons
tracking allows you to pinpoint certain parts though our established ad mail campaigns
of a stimulus that are capturing a person’s were successful and profitable, we were
attention,” explains Lucaci. In a world blown away by how well customers
where everyone is competing to trigger “Frankly, I don’t believe direct mail will ever
responded to this new approach,” says Fry.
action in three seconds, such knowledge be replaced. You can’t refute the evidence
can make all the difference. Burger King mails 15 million coupons per
that we got from our lift,” adds Fry.
year. Thanks to predictive eye tracking
Relying on a mathematical algorithm, feedback, adjusted layout and refined To learn more about Canada Post’s
predictive eye tracking predicts what targeting, the coupons can receive increased predictive eye tracking, visit
draws visual attention, with more than noticeability and benefit from simplified canadapost.ca/predictiveeyetracking
80% accuracy.1 It’s the equivalent of 40 or talk to your Canada Post representative.
messaging and maximum impact.
people looking at your communication
for 5 seconds.
1. When compared with full-eye-tracking research. 13Success stories
Q+A WITH MANDY ETIENNE
Direct mail
delivers hot results
for a cool brand
For Mandy Etienne, Director of Marketing at Marble Slab, a global
chain of take-out ice cream shops, direct mail is an integral part of the
marketing strategy, the results are measurable, and franchisees are
asking head office to invest in more of it.
CPC: As a growing franchise, CPC: How do you typically go CPC: How do you use direct mail
what is your greatest challenge? to market? in digital campaigns?
That’s easy: it’s technology. That We focus on building excitement We encourage our customers to sign
includes many things that affect the for our customers, so many of our up for our mailing list to be rewarded
customer experience and are evolving marketing initiatives highlight new with exclusive offers, and we also
at a rapid pace. Some of the things products and flavours. We’ve found have coupons available on our website
we think about are self-serve kiosks, a multi-channel approach works for those browsing organically. But
digital menu boards, POS updates best. That often includes direct mail, people need to see a message an
and our digital presence online. digital / social, third-party partnerships, average of 15 times before acting.
We also need to stay in line with like our relationship with CAA, radio That’s why we’re focussed on solid,
customer expectations to have and specialized magazines at differentiated marketing channels.
everything available on their phones holiday times. We send email communication, then
by providing an app, which will also a direct mail piece, then we pump it
allow us to capture data to segment up with another email or social
better. We’re focused on growth. We outreach. We have great redemption
have to drive awareness so our brand compared to digital only. That
is always top-of-mind and we have to integrated approach delivers greater
keep our current customers happy, results than any channel by itself.
loyal and coming back.
14SUSHI FLYER?
CPC: How do you know that your How do your franchisees feel
creatives will resonate and that about using direct mail? If you’re looking
your direct mail is generating
results?
I have franchisees tell me they’re
willing to top up and pitch in more
for more tips
We use different codes for direct mail money for direct mail campaigns. on how to use direct mail to
and email so we can track results. They’re part of our national campaigns, strengthen your brand, visit our
When coming up with campaigns, but they’re asking if they can do Business Matters blog, at
particularly direct mail campaigns, we direct mail campaigns at different canadapost.ca/businessmatters.
use predictive eye tracking on our art times of the year too.
work. That gives us the opportunity
to make sure the message has the
right hierarchy. We can also make
sure the digital outreach is aligned
with print.
15Getting started: using direct mail
to drive results for your business
Determining who to target is critical to the success of your campaign
and you have options in how to approach this important step: you can
do it yourself with Canada Post’s online tools, or for more complex
targeting, you can work with a Canada Post Data Advisor. If you need
support with more than targeting, one of our expert partners can help
you from start to finish.
PRECISION TARGETER
If you have a creative concept and Precision Targeter can filter searches
you have a printer, consider using based on 14 demographic categories
Precision Targeter. It’s a free and and driving distance from your
easy-to-use online tool that helps you restaurant so that campaigns are
hone in on people with the most more likely to resonate and bring
potential to become customers. in customers.
With its interactive maps and rich To find out more about
demographic data such as age, Precision Targeter, visit
income, education and marital status, canadapost.ca/precisiontargeter.
16 16Find the right
customers
CANADA POST CANADA POST’S In addition, you can enhance targeting
DATA ADVISORS SMARTMAIL MARKETING and campaign integration with a
designated Smartmail Marketing
Running multiple campaigns for PARTNERTM PROGRAM Expert PartnerTM.
numerous locations can be complex From developing a concept to testing
and time consuming. Canada Post can To find a local Canada Post Partner
your creative and getting your mailing
handle that work for you and make that meets your needs, visit
delivered, our partners can help execute
sure you maximize results. canadapost.ca/directory
your campaigns from start to finish.
or see Page 18.
A Canada Post Data Advisor can do the Canada Post is connected to 250
following to optimize your campaign: partners across the country – direct
• Provide best practices based on mail marketing experts who can help
other QSR’s experience. you maximize your marketing
objectives and support your campaign
• Recommend targeting options to
goals based on your budget.
your specific store boundaries and
borders. You can use a partner to develop a
creative that drives consumer attention,
• Consider drive distance, drive time
emotional engagement and brand
or radius around your locations to
recall; to better integrate your marketing
identify the right areas to target.
mix across channels; and to make sure
• Review how to optimize campaigns your mailings meet print and
with demographics, behavioural or processing requirements. They can
business attributes. even clean your mailing lists for you.
And all while working to your
campaign size and budget.
17Your direct mail
design checklist
To optimize your direct mail for results, make sure it has these features:
R
Eye-catching visuals: It’s all about the food – invest in professional photography to capture the quality of your
menu and inspire “I want that now.”
R Astrong call to action: Whether that’s redeem a coupon, visit a new location or download an app,
make sure your call to action is specific, easy to understand and easy to find.
R T
ext that’s clear, action-oriented and concise Motivate potential customers and patrons with a short
message that’s to-the-point.
R S
imple design Don’t clutter the page – that makes it hard to digest your message.
R High
quality: Use high-res images, good paper stock and a reputable printer. Proofread your copy.
This will strengthen your trust factor.
Learn more about how to create direct mail that works
in our new Essential Guide to Direct Mail: Everything You’ve Ever Wanted to Ask.
canadapost.ca/guidetodirectmail
19Serving up results
with Canada Post
To learn more about integrating direct mail into your
marketing mix, visit canadapost.ca/betterresults,
connect with your Sales Representative or call our
Commercial Service Network at 1-866-757-5480.
Unless otherwise indicated, statistics mentioned in this resource come from market and neuromarketing studies ordered by Canada Post.
™ Trademarks of Canada Post Corporation. All other trademarks belong to their respective owners.
®
Burger King is a registered trademark of Burger King Corporation, used under license.
20You can also read
