Method Marketing Newsletter: Issue 35
November 4th, 2002

Getting Personal:
Guest Relationship Marketing - A Primer

Synopsis:

An effective Guest Relationship Marketing program includes two arms -- one focused on sales building, the other on data collection. Both share the absolute commitment to put the guest first. This is not about finding more ways to interrupt their lives, but to engage them in meaningful, two-way conversations. They must provide guests with concrete benefits and information that they deem 'interesting & important'. As a result, the conversations spawn every-deepening relationships. It's not about us; it's about the guest.


 

"What is pleasanter than the tie of host and guest"

Aeschylus*
*Courtesy of the Quotable Feast


Your guests define 'value' by the totality of the experience: the service, the décor, the food and its flavors and aromas and the cost: all details that create a memory.

The most memorable experiences come from an organized, well-rehearsed and communicated performance. Great 'word of mouth' is built note by note, scene by scene, act by act, so that by the end of the visit your guest walks away 'wowed'. Or bored. Or, worse of all, disgusted. It's your choice.

For the longest time, I thought that dining was, at its heart, about the food. God knows, I love to eat. I savor every single mother-loving moment of flavor and sensation that accompanies an expertly prepared dish. But, that ain't it. Neither is it the ambience, nor is it the hospitality. Have I gone crackers? We're in the restaurant business, for crying out loud. At the core of all the effort is the guest. Yet, we restaurateurs spend little time cultivating the relationship with our current guest. Hey, we got them already. We're always on the lookout for the ephemeral 'guest I don't got'. We give our current guest the short shrift. How can you tell if you are part of this majority? Simple. Answer these questions:

  1. Do you know many of your current guests by name?

  2. Do you know where they work, their kids names?

  3. Do you know how much they spend with you, or how often they visit?

  4. Do you collect that information in a database?

  5. Do you have their phone numbers or e-mail addresses?

  6. Do you reward different guests differently, based upon their use behavior?

  7. Do you encourage guests to refer you to others in any standardized way?

  8. Do you have any systematic way of getting their feedback or gauging their satisfaction or loyalty?

  9. Do you communicate with them on a regular basis? Is there any methodology behind it?

  10. Do you actually share information they care about, or is it basic "sales talk"?

  11. Do you know if they have left your restaurant to call another restaurant their 'favorite?' And, if so, why?


Why does any of this matter?

  • The cost is five times as much to lure a new guest than to retain your current one.

  • Unsolicited 'word of mouth' is the most powerful advertising tool.

  • According to BMW, interaction with customers makes them three times more likely to believe in your story and become buyers.

  • Given too many choices, and the guests' susceptibility to brilliant advertising prevent you from assuming that "if you got them, they'll come back."


What should your Guest Relationship Marketing Program look like? It should have two components. The first is sales focus. The second is guest relationship/satisfaction measurement.

Sales Focused Ideas:

  • E-mail clubs that inform, reward and get in front of the guest on a regular basis

  • Loyalty cards that reward patronage and trigger management action

  • Guest referral programs that reward both the referrer and referred


Guest Relationship/Satisfaction Measurement Ideas:

  • Guest E-feedback that encourages an ongoing dialogue, with:

* Prompt response that inspires faith that you 'walk the walk' and really care what they think

  • Research participants culled from you e-base:

* Mystery shoppers, focus group members or quantitative research panel participants can and should be picked from your current audience

  • Training opportunities derived from feedback

* Trends can be spotted more quicly

  • Guests give immediate, articulate opinions

* With a constant flow of guest feedback, you now have new ways to celebrate the wins and learn from the mistakes. You'll find guests love to share their thoughts, if they think you are interested in listening


I concentrate on the electronic world, because of its combination of speed, lack of expense and intrusive potential. It doesn't ignore more traditional means of communication, but it is where the opportunity lies. Anybody can play in the electronic league. Because so many of the big guys rely on mass media as the means to create traffic, the 'Davids' of the world can slay the mighty 'Goliaths' when on-line. I love TV, but it is like starter fluid. It gets the fire started, but it won't make a friend.

Even with the tools mentioned above, you have to put yourself in the shoes of the guest. What do they want to see? What interests them about your concept or story? Base the conversation on their needs, and you will never go wrong. These are the folks who will bring others to your restaurant and sing your praises. They will be your evangelists and raving fans. Sounds like a plan to me!

 

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Seminars: Now, for a little shameless self promotion. Looking for a high-energy speaker, capable of personalizing a presentation to meet your needs? Just email me at rkhendrie@linkincmethodmarketing.com. I will get right back to you, so that we can discuss how I can be of service to your organization.


The Method Marketing newsletter gets published every three weeks and concentrates on concrete ways you can take advantage of the emerging "Experience Era".

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