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Functions Of Marketing Department

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The History Of Frequent Diner And Customer Loyalty



Since the creation of restaurants, owners have always wanted and needed to know who their customers are and what they like to eat and drink. This information is vital to the ongoing success of a restaurant.

In addition to knowing their customers they sometimes gave away food or drinks in an attempt to buy favor with those customers. While this worked in most cases there were no controls in place to prevent abuse by employees nor were there any requirements other than the good mood of the owner.

Abuse of this method of rewarding customers was rampant. Employees would take advantage of this and give the same favors to their friends. This drove food and bar costs skyward, while making the employees rich through additional tips from their happy friends.

In an attempt to control this madness someone came up with punch cards and stamps. The abuse of the system slowed but was not stopped. How many of us have gotten an extra punch in our cards or extra stamps from a waiter in an attempt to get a better tip? This happens daily in restaurants with this system.

Then came the counterfeiters of these cards and stamps. Recently the Subway chain had to end their 20-year old Sub Club stamp program for this very reason.

The Need To Manage Frequent Diner And Customer Loyalty

The need is great.

As the business owner you need your point of sale system to provide accurate customer information on buying habits, number of visits, frequency of visits, entice repeat visits and purchases through reward programs. Do all this while managing the programs and preventing "sweet hearting" by employees.

No small task. Especially with the creative employees that so many restaurants employ.

The Solution For Managing Frequent Diner And Customer Loyalty

Some point of sale products come standard with a frequent diner or customer loyalty package that does all these things and more.

Some Frequent Diner Module utilizes secure methods of tracking your guests and their buying habits. You establish a database of guest's information with an account number. This number can be their phone number or any number system you desire. However, the most popular and most secure method is through magnetic cards with your logo on them. These cards act as a constant reminder of your restaurant by having your logo in their wallet or purse.

These Frequent Diner Module will secure the reward programs you put in place and preventing the employees from giving away food. Rewards are giving only when earned through purchases, frequent visits or for items on your menu that you wish to highlight. The establishment of reward programs takes your employees out of the game and puts you in charge.

You may establish multiple reward programs and assign them to customers on an individual basis. Not every frequent diner has to belong to every program. You have the choice of which customers are involved in which programs.

Reward programs can be established to highlight a new item, feature a portion of your menu or encourage your customers to come back during a specific meal period. Programs can be created to reward customers after a specified number of visits or for how much they spend.

Rewards can be a % off, $ off, a specified item free, or other creative rewards. You have the option to have instant rewards or make the reward good on their next visit.

The Benefit Of Managing Frequent Diner And Customer Loyalty To You

Imagine being able to market directly to your customer base. Imagine having detail knowledge of their buying habits how often they came, when was their last visit, their anniversary and birthdays. With this information you could create marketing materials targeted at your customers and bring them back more often.

Imagine having the ability to establish reward programs to build meal periods that have been traditionally slow. If you need to build your lunch business, establish reward programs based around this meal period and then distribute your frequent diner magnetic cards to businesses and their employees in your area. Don't just sit back and wait on someone to walk in your door. Go out and get them!

Imagine having the ability to highlight low cost menu items and use them to reward customers.

In real dollars and profits the frequent diner module can generate huge results. Let's say you have a $10 ticket average per person with a 35% food cost. If you created a program that rewards a customer with a free appetizer every 5 visits. Appetizers have an average price of $4 and have the same 35% food cost.

If the person ate alone for those 5 visits you would have enjoyed $50 in sales and $32.50 in profits.

Your customer has now earned a reward of a free appetizer on their next visit at a cost to you of only $2.60.

This means that you have a net profit of $29.90 on sales that were increased through rewarding the customer for repeat visits.

If this guest brought a date then your profits would have been $62.40 with a cost of the program of only $2.60!

Imagine the rewards YOU will get for increased sales of your repeat customers.
Functions Of Marketing Department
Realistically, if your marketing department cannot fill the rooms the remainder of the hotel function is superfluous. Applying this theory, marketing had better fulfill its appointed task and scour agencies, tour operators, local businesses and organizations, for volume traffic; and the operations management, i.e., the general manager, assistants, and service staff should care about maintaining the guests? experience. That has worked for years and numerous extraordinary hotels, with enviable reputations, operate with success employing these identical programs.

I realize the prestige chains of today - Ritz Carlton, Four Seasons, Relais & Chateau, Mandarin Oriental, et al - have corporate policies for marketing; and in my opinion those policies may handcuff a creative marketing department. Today's marketing must be pro-active, using the web ? SEO, PPC, BLOGS, and social networking - and oriented toward more than just groups and organizations. Realistically, the decision for a group or company to host a function at your hotel is very seldom a group one; more often it is the president/organization head, or even his/her spouse, that will most influence a location and further which hotel to book in that location. Many hotel marketer's are blessed by their properties location ? La Samanna in St Martin, The Ritz Carlton in Naples, and the Ritz Paris all have reputations as 5-Star Hotels ? and their locations have not hurt that perception at all. Conversely, downtown Detroit, Michigan would be a tough sell to almost any group. However, if you are located in a major city the competition to keep your occupancy rate high can be daunting. Even with the many activities, restaurants, and museums located in most major U.S. and European cities, those advantages need emphasized by your own inventive marketing techniques.

Most of the premium properties do not rely on rewards programs such as Marriott and Starwood now tout. These hotels are more oriented to the frequent mid-level business traveler and these programs structured to be an incentive for people's booking on business trips, thereby gaining free advantages when they travel on pleasure, or with the family. However, the premium properties do maintain extensive computer databases on their frequent guests. Unless the arriving guest is a Tom Cruise type celebrity, these acknowledgments fall upon front desk personnel to fulfill. While this is successful in many cases, I believe your marketing should be involved in this aspect of operation. If a hotel executive greets a frequent guest, besides recognition by front desk personnel, you multiply the beneficial effect giving your marketing people an opportunity to meet directly with the guests. That meeting, along with others that may occur during the guests stay, present marketing with an opportunity to seed future visits; or perhaps book a business meeting with multiple room bookings.

My best experience with a 4/5 star hotel occurred in Munchen(Munich), Germany. At the time, this was Hotel Rafael, small and family owned, and operated. I was in Munchen for the first time on business for my client BMW AG. When I arrived by cab from the airport it was only 9:00 am. Since check in was not to later in the afternoon I expected to just drop my luggage and cab-over to the corporate headquarters even though my appointment was not until 2:00 pm. Of course, the previous guest occupied my appointed room; but I was promptly offered a basic room to shower while waiting for my room. When I did come back to the lobby, every employee already knew my name and gave a sincere friendly welcome. I still had some time before my appointment so I inquired into car rental; the concierge suggested I move to the restaurant for their breakfast buffet and he would arrange everything. When done my car was waiting outside, I signed the papers, received map and directions and was off to my appointment. When I returned, my room was ready, my luggage moved, and suits hung in the armoire. That night the bartender greeted me like a long lost comrade; and I realized that he spoke 4 different languages while tending bar.

I traveled to Germany 6-8 times each year for about 4 years ? each time the staff remembered me, down to the bartender remembering my drink and what brand I would drink. There was no way any other hotel in Munchen would ever get my business; I even had six of my staff members stay there when I needed to bring the whole contingent for a strategy seminar. Now the hotel operates as a Mandarin Oriental; and its standards are almost as good. Both the bartender and the concierge have retired and been replaced by your standard friendly employee ? but it is not the same. I am not blaming the employees but I do blame the marketing staff. It is their responsibility to empower the employees to move beyond the standard ? which may be to exceed the guest's expectation ? but will often fall short.

Unfortunately, now it is just a job to most. I still stay there when it is convenient but my inbred loyalty falters at times.

Staff should be friendly, without being familiar, and helpful to an extreme. It's staff that brings guests back to a hotel and it is staff that will get you referrals. Unless you depend on discounting to fill the rooms, you had better take the time to educate, or maybe I should say indoctrinate, each staff member on their part in marketing your hotel. In addition, you better get your marketing staff out of their offices and have them interacting with your guests to better understand, and ultimately fulfill all guests needs and wishes. The day of the basket of fruit, with a thank you note, in the room is long gone for the true Five-Star property.
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