Nov
15
2013

Closing the digital loop – how to turn website visitors into paying customers

This week we were mentioned in a great piece by the Wise Marketer. The article is titled ‘The restaurant that got 300% ROI from email‘ and explains in detail how Shaka Zulu achieved a massive return on investment from a very simple idea – a free cocktail for visitors signing up via their website, it’s  a must read for all operators in the hospitality sector. In this short post we’re going to look at the numbers, what was different about this campaign and why this example of email marketing is important for hospitality businesses.

 

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300% ROI in figures:

Over a 6 month period 12,515 people signed up for the offer, 8,285 individuals opened the email (66%) and a whopping 2,479 people actually redeemed the voucher. That’s close to 20% redemption rate based on the opened emails – this is which compared to the industry average of 1% is breathtaking.

The Wise Marketer explains the ROI simply and clearly:

In terms of return on investment (ROI), each customer entering the venue spent a minimum of £10, resulting in estimated additional revenues of some £24,790. The cost of running the campaign with Footfall123 was £546 per month, plus an estimated cost of £2 per cocktail given away. Therefore, with a total cost over six months of £8,234 the resulting profit equated to an ROI of 301%.

What was different about this campaign?

Put simply this campaign converted online visitors to the website into real world paying customers. This is an industry leading campaign in terms of conversion success & redemption rates  (we were nominated for best use of email for this campaign alongside the Olympics and Barclay’s).

Why is this important for the hospitality sector?

At a time when competition is fierce, margins are squeezed and customers are seeking the best value for their money this offer stands out for its simplicity and excellent use of technology. The fact that the success can be measured in a clear financial return should give operators in the sector the confidence to do more in the digital space to attract new and reward existing customers.

If you’d like to find out how we can help you to achieve success in your business, please contact James Thomas on 0207 078 8323 or click here to send an email

 

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About the Author: James Thomas

I work with retail and hospitality businesses to develop their digital strategy, specialising in loyalty marketing. I ride a bike, I like to swim and enjoy a nice cup of tea. You'll find me in the kitchen at parties. Drinking real ale. From a jug.

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