Archive for September, 2007

Sep 27 2007

How Ruth’s Chris Got Them Coming Back

Published by Stephanie under Marketing, Restaurants

I’m an idea factory
– Donna Messer

 

 

It began with an article for Business Woman Magazine. Its Managing Editor and Networking Guru Donna Messer wanted to write about Lana Duke. She’s the franchisee of two Ruth’s Chris Steak Houses. “I could see she had a good story to tell,” says Messer, “and that she was a forward-thinking business owner.”

At the time, Duke was working with a PR firm that was getting her restaurants good exposure. She was also conducting a monthly draw for a free steak dinner, picking from the hordes of business cards accumulated in the large glass bowl at the restaurants’ welcoming stand.

Duke was happy with the business she was generating, and then Messer delivered the kind of question she often does: “Would you like to generate even more?” “Yes. Certainly,” answered Duke.

That’s when the tumblers starting turning in Messer’s mind. “What do you do with the remaining cards?” she asked.

Nothing, it turned out. ["We put them in a box."] Until then. Recognizing value in these dormant contacts, Messer proposed a plan to create an up-to-date database from which Duke could e-market using some innovative ideas Messer started cooking up.

Messer hired someone to build the database using the time-saving CardScan, which has stellar optical capabilities. The contacts were individually verified by phone to ensure that all information was current and correct.

With this database of 6,000 customers who have already bought into the Ruth’s Chris brand, Messer sent an email with a Subject field that read, “YOU’VE GOT A STEAK IN THE MAIL!.” In the body of the message, she installed the sound of a sizzling steak, which led the visitor to a page offering a free steak on their next visit.

What carnivore wouldn’t love a high-quality complementary steak? A $50 value.

No one’s fooling anybody. No one goes to Ruth’s for just a steak. Who would? They’ll want a starter, a side dish or two, some wine, maybe dessert and coffee. Brandy, maybe, too. And rarely will they go alone.

So, let’s do the math.

If only 2% of the email recipients take Duke up on her offer — which is on the low end of the range of response rates you can expect from a strategically targeted piece of direct mail — she’ll have to shell out about 120 of her gorgeous steaks.

And what does she get back? A 35% increase in sales.

Duke was also able to analyze the response to her campaign, identify her most receptive prospects, and use this new database to market special events like business meetings, corporate celebrations and Christmas parties to a growing, loyal clientele.

Nice work, ladies. Love those numbers. Love those results.

I feel like steak.

â—Š

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Sep 06 2007

Molecular Profiling, As Promised

Published by Stephanie under Chefs, Cooking, Marketing, Media

As promised, here’s the Foodservice & Hospitality profile of Cindy and Dominuqe Duby and their creative approach to ambrosia …

SWEET SCIENCE

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