Tuesday, September 30, 2008

RGR

Day in and day out we talk about the effectiveness of our marketing. How do we track the ad we put in Philadelphia Magazine, how do we track the billboards we put along I-80 and how do we tell how many people came from our ad in the New York Times? The marketing vehicles may be different in your business, but the issues are the same. What is working? How do I measure that? Was it worth the investment?

In the search for the silver bullet that will open the proverbial sales flood gates we cannot forget the lowest cost form of marketing - getting your present guests to return. It is an age-old marketing lesson that it costs less to get your present guests to return than it does to attract new ones. Additionally, the word of mouth that a happy guest can provide is invaluable and inexpensive.

A measurement that we should all focus on is RGR or rate of guest return. Are your present guests returning and how often? They know your product; they like your product and they know how to get it. The retention of this guest is far less expensive than obtaining and informing a new one.
Track your marketing. Spend dollars wisely on what marketing vehicles you believe are working. But, do not forget to listen to your current guests, find out what they like and do not like and accommodate them. Those dollars are some of the best dollars you can spend.

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