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Email Marketing Brings a Faster Return on Investment.

By: Maria Cardinal - Freelance franchise contributor to RedHotFranchises.com

 

Article reposted with permission from AIS Media:

AIS Media, Inc. a e-business solutions company announced the results of online polling of America’s restaurant industry and its approach to the internet and online marketing conducted March 19-23, 2007. For the poll 5937 restaurants nationwide were contacted and were broken down by the following categories: fast food; family; sports; food/bar; upscale; and other. The poll has a margin of error of +/- 3.27%.

In polling the restaurant survey, AIS Media sought to determine whether online technology plays as dominant of a role in the restaurant industry as in other industries. The results showed that 89% of restaurants responding had a website and 11% did not. Restaurants having websites were more likely to be in the Pacific coast and across the South with upscale restaurants being the most likely to have a website with 94% having a website; followed closely by food/bar restaurants with 93% having a website, and family restaurants with 86% having a website. A majority of the restaurants surveyed saw their website as a primary marketing source.

“In today’s information age, the savvy consumer researches everything online including where they will dine out,” said Thomas Harpointner, CEO of AIS Media, Inc. “Restaurants are cognizant of this fact and are developing interactive websites that allow consumers to see their menu offering, the amenities of the restaurant, specials offered by the restaurant, subscribe to email newsletters and in some cases place orders online for delivery or pickup.

With over 89% of restaurants in America currently having a website, the competition for restaurants will be to have a highly specialized website that speaks to their specific clientele,” continued Harpointner.

“More and more in today’s technology driven world, consumers are making their decisions based on the Internet as it has become such an integral part of our everyday lives,” said Harpointner.
In the poll, email marketing is now tied with magazine and newspaper advertising by the restaurant industry in seeking customers. Word of mouth recommendations is still seen as the best forum to attract new business although limited in its reach. Sixty-eight percent of respondents stated that email marketing was now a primary way to reach new customers with 29% of the respondents of the respondents doing a monthly targeted campaign. The use of Email marketing mimicked the application of websites in the Pacific coast and across the South.

“Email marketing brings a faster return on investment at a lesser cost than traditional advertising,” said Harpointner. “With newspaper circulation down and the advent of Tivo, the best way to advertise for restaurants is through the email inbox. Although as in any industry, nothing speaks louder than customer satisfaction and with the internet. Today, it’s all too easy for a customer to post both complaints and praises all over the internet and a large number consumers base decisions on customer feedback.”

Unlike other industries, the poll showed that restaurants build their email lists through their existing customers instead of purchasing lists, with 68% of respondents saying that their email address collection is done through website opt-ins, 61% adding to their list through on-sight sign-ups, and only 18% contributing through business card promotions. A key finding showed that many restaurants do not utilize outside sources at all for creating their targeted marketing list.

Despite signs of a sluggish economy when traditional marketing decreases, the poll showed that 50% of respondents expected to increase their marketing services through the internet; 43% expected to maintain their current level of internet marketing; 4% expected to decrease their spending; and 3% were undecided. Leading in expectations of increased internet services were upscale restaurants with 57% intending to increase; followed by food/bar establishments at 52%; and family style restaurants at 46%.

“Success in marketing methods is marked by if a company will continue with its current methods or seek other venues,” said Harpointner. “The fact that over 50% of restaurants expect to increase their spending on internet marketing services, particularly in this uncertain economy, demonstrates that restaurants are seeing a strong return on investment with the internet with 43% of respondents saying that increased profitability was their reason for selecting internet marketing.”

“With increased spending on internet marketing, the consumer can expect to see more targeted and specific advertising within the Internet,” continued Harpointner. “General email advertising is not as effective and profitable as targeted email advertising. For example, an older consumer who enjoys the local sports bar from time to time would not be likely to respond to an email for a wing special to watch the All-Star Game or Super Bowl with a huge crowd. However, they may be more responsive to a weekly special that would allow them the atmosphere without all of the people. Restaurants that develop targeted campaigns based on their customer demographics can expect to see higher success rates with their email campaigns.”

In developing restaurant websites and email campaigns, the survey showed that 61% of restaurants outsource their email and internet sources with only 36% doing it in-house.

 
“To be viable and competitive, a website and email campaign has to be constantly changing and evolving to continue to attract attention,” said Harpointner. “For most restaurants it’s more cost-effective and efficient to outsource the management of their email marketing program to a professional services firm than to have a full time person on staff.”

About AIS Media
Founded in 1997, AIS Media is an award-winning provider of professional Internet solutions that empower businesses to increase revenue, reduce expenses and improve productivity. The company has developed a suite of Web-based applications under the proprietary “Excerpo” brand, which focuses on email marketing and e-commerce. AIS Media’s suite of professional Internet services includes professional website design, application development, credit card merchant services and Internet consulting. AIS Media’s solutions are available directly and through its global network of certified partners