The $300k Email

Is it surprising to think that businesses invest anywhere from a dollar to hundreds of dollars to acquire a customer?

Consider this scenario: You own a cafe or restaurant and want to attract more customers. You decide to introduce a new offering, such as a special coffee blend or a unique oversized burger. After unleashing your creativity and expertise, what's next?

Many establishments resort to using a flyers, social media posts, or sandwich boards to promote their new offerings and then wait for customers to respond. If this approach sounds familiar, you're not alone. While restaurants, cafes, and banquet halls excel at serving customers and creating memorable experiences on-site, they often struggle with customer engagement and building their customer database.?

In essence, owning a database of customer emails and phone numbers allows you to engage with loyal customers effectively when the time comes, often at no additional cost.

Like many others, I operated a business for years without collecting any customer data, assuming it was just the norm until I realized otherwise. Owning your customer data is like building future value in your business. While a customer's purchases represent income, being able to reach thousands of customers with a click of a button to promote a new offering or special deal represents equity.

In other words, advertising to a customer once is like renting a house, whereas being able to market directly to a customer is like owning a house (you just buy it once)

Before selling my restaurant, I had amassed a customer database of over ten thousand individuals who cherished our business and frequented us whenever we had something noteworthy to share. When the pandemic hit and restaurants were mandated to close or operate solely on a takeout basis, my team and I brainstormed ways to support our community. We decided to launch an online butcher shop where customers could order meat directly from us for home delivery. Our supplier enthusiastically embraced this initiative as their business had plummeted by 90% due to closures and they were seeking new revenue streams.

I sent out a mass email to our customer list, and the response was overwhelming. This initiative led us to tap into a completely new market for our restaurant, generating an additional $300k in sales in the first year and $350k in the following year, excluding restaurant sales. The key takeaway here is that by implementing strategies to cultivate customer equity, such as maintaining a customer list, you essentially have a profit-generating resource that you can leverage whenever needed. I like to refer to this as the Profit Faucet - a tool that allows you to capitalize on opportunities like promoting new burgers, offering Mother's Day specials, or sending out holiday greetings with ease and efficiency. Just turn on the faucet and watch the profit roll in.

Looking for ways to start creating your database??

I have put a list of 12 different ways that you can start collecting information from your customers. All businesses are different and some of these may work and others won’t but no one knows your business like you do. So what can you do in your business that might get more customer info??

1. Online Orders: When customers place orders online through your website, ensure to incorporate an opt-in checkbox for receiving promotional emails and newsletters.

1. ?Reservations: When customers book a table through your website or a third-party platform, remember to include an opt-in checkbox for receiving promotional emails and newsletters.

1. Wi-Fi Sign-In: Offer free Wi-Fi in your restaurant but require customers to sign in using their email address or social login like Facebook or Instagram. This is a non-intrusive way to collect emails and can be very effective.

1. Loyalty Programs: Encourage customers to join your loyalty program by signing up with their email. Highlight the benefits, such as discounts, special offers, and exclusive updates. This is a common one but it has to be right otherwise it doesn’t represent the brand well.

1. Comment Cards: Leave comment cards at tables where customers can leave feedback along with their email addresses or contact info for follow-up offers and updates. You can go one step further and make this digital and do a giveaway every month as an incentive.

1. ?Social Media Contests: Host contests on your social media platforms where participants sign up using their email addresses. Offer prizes that encourage participation, like a free meal or discounts. *Be sure to create it in a way that you can get customer's information not only on socials but their email and phone numbers.

1. Website Pop-Ups: Use a pop-up form on your website inviting visitors to subscribe to your newsletter for exclusive deals and news. Make sure it's user-friendly and not too intrusive.

1. Birthday Clubs: Offer a special discount or a free dessert on customers' birthdays as part of a birthday club. Customers can sign up with their email to receive their birthday offer each year.

1. ?Events and Workshops: Host events, workshops, or cooking classes at your restaurant and require registration via email. This can also enhance your restaurant’s community presence.

1. Feedback Surveys: Send surveys to customers asking for feedback on their dining experience. Include an option to sign up for your email list at the end of the survey.

1. Receipts: Include an option on your receipts inviting customers to sign up for your email list to receive promotions, perhaps with a QR code that leads to a sign-up page.

1. QR Codes: Place QR codes around your restaurant (on tables, in the menu, or at the cash register) that direct customers to a sign-up form for your newsletter.

1. Referral Program: Create a referral program where existing subscribers can refer friends to your email list. Reward both the referrer and the new subscriber with a discount or free item to encourage participation.

In conclusion, the journey from owning a business without collecting customer data to leveraging a robust database can be transformational. The story of the "$300k email" shows the power of customer equity and the impact it can have on business growth and resilience, especially during challenging times like the pandemic.

By prioritizing customer engagement, building a loyal customer base, and implementing strategies to collect customer information, businesses can create a valuable asset that serves as a “profit faucet” ready to be activated when needed. Whether it's promoting new offerings, launching innovative initiatives, or simply staying connected with customers, having a database of engaged customers can be a game-changer for any business.