As a restaurant owner, you might be knowing that marketing is the key to your success. But what are the best ways to market your restaurant? In this blog post, we will discuss one of the most effective restaurant marketing strategies: geofencing.
Geofencing is a technology that allows you to target customers in a specific area with ads and special offers. You can even consider it as a powerful tool helping you reach more diners and increase sales!
Restaurant Marketing: Geofencing and Other Strategies
In a nutshell, restaurant marketing is the strategy to engage your customer base. Now, there is no single way to do this. You can perform a series of actions across multiple channels to reach your audience. These channels can be online, print media, email, social media, and offline.
Besides, you can use different types of restaurant marketing strategies to promote your business. These can be social media marketing, print advertising, and local newspaper ads. But one of the most effective methods often used by restaurant marketers today is geofencing.
So, what is geofencing? Specifically, it’s a technology that allows you to target customers in a specific area with ads and special offers. You can send targeted messages to people near your restaurant or who have visited in the past. Also, you can target people attending nearby competitor locations. As a result, it allows you to reach more diners and increase sales for your business!
- You can use different geofencing strategies to market your restaurant. For example, you can create a geofence around your restaurant to target nearby customers. Simultaneously, you can reach people who have visited in the past.
- Geofencing also allows you to set up virtual fences around locations where your target audience often visit. Such as, popular shopping areas or tourist destinations.
- Another great way to leverage geofencing is with mobile ads. Using geotargeting and location-based retargeting, you can reach more customers and deliver digital ads. As a result, you can bring in more sales and revenue for your restaurant.
So, if you are looking for an effective marketing strategy for your restaurant, geofencing can be the best option. It is simple and easy to implement. Furthermore, it has the ability to target the right customers at the right time. Undoubtedly, these compelling benefits turn geofencing an effective restaurant marketing tool for today.
Benefits of Restaurant Marketing
Restaurant marketing offers the following benefits:
- Easy to reach more customers
- Increase in sales and revenue
- Stay ahead of your competition
Effective marketing is crucial when you are starting a new restaurant or planning to grow the existing one. Besides, it becomes easier to increase the customer base. It is when marketers think about targeted advertising and special offers. Using these strategies, you can connect with people who may or may not be familiar with your restaurant. Additionally, an effective restaurant marketing can drive sales and increase revenue for your business.
Significantly, with the right strategies in place, you can;
- Increase customer engagement
- Boost repeat visits
- Convert more leads into paying customers.
Of course, the importance of restaurant marketing extends beyond generating revenue. It helps businesses stay ahead of the competition and maintain a significant profit over the long term. Moreover, you can build strong relationships with your customer base; making them loyal to your brand and standing out from competitors.
In addition, leveraging the power of restaurant marketing you can increase foot and online traffic to your business. Other advantages are:
- High customer retention and increase in customer lifetime value.
- Easy to attract new staff members.
- Create new opportunities for distributors and vendors.
- Improve brand awareness within the industry.
- Increase visibility to new audiences and markets.
- Build long-lasting relationships with the local community.
- New business partnerships and collaborations.
So, are you ready to take your restaurant business to the next level and attract more customers? Start using geofencing and other powerful marketing tactics today!
How Much Should You Spend on Restaurant Marketing?
Considering the minimum percentage, your marketing and promotion budget should be three to five percent of your projected revenues. You need to consider this while building your business plan. Let’s understand how you can execute your restaurant marketing plan.
In the first few years of your business, you can ask your friends and family to visit your restaurant. Later on, these customers will spread the word to their friends about your restaurant.
In addition, the key to successfully allocating your restaurant marketing budget is identifying the most effective channels. Therefore, you need to find the channels that help reach new customers and generate repeat sales. Your restaurant marketing strategy may include:
- First, create a user-friendly website with online ordering capabilities.
- Next, run paid advertising campaigns on social media platforms like Facebook, Twitter, and Instagram.
- Then, develop an email marketing campaign to engage past customers and drive them back to your restaurant.
- Partner with local businesses and organizations to cross-promote or offer discounts.
- Finally, utilize geofencing technology to target potential customers based on their location.
Here’s what The U.S Small Business Administration recommends:
“Many businesses allocate a percentage of actual or projected gross revenues. It is usually between 2-3% for run-rate marketing and up to 3-5% for start-up marketing. But the allocation depends on several factors. These include the industry you are in, the size of your business, and its growth stage. For example, in the retail industry, businesses spend up to 20% during the early brand-building years.
According to a general rule, small businesses with revenues less than $5 million allocate 7-8% of their revenues to marketing. You can split this budget between brand development costs and the costs of promoting your business. The brand development costs include channels used for brand promotion, such as your website, sales collateral, etc. On the contrary, the business promoting costs involve campaigns, advertising, events, etc. This percentage also assumes you have margins in the range of 10-12%. You can calculate this once you have covered other expenses, including marketing.”