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Data-Driven Insights – Which Promotion Drives the Better ROI?

Data is hugely important in the digital era. It’s the key to successful restaurant marketing.   With the help of guest data, marketers have the opportunity not only to maximize performance, but to proactively drive the results they want.  Although not all restaurant marketers use offers, for those who do, what data can they capture and what are you doing with it?  Which offer will yield the best results? Do rich offers destroy their ROI?  Did they optimize their campaign performance?  A restaurant marketer needs to capture the data to answer those questions.  But after obtaining the data, the next challenge is perhaps harder:  they must glean the right insights from that data to drive their marketing investments – and to change guest behavior.

 

offerManagerDDI_chart1Let’s look at some concrete examples from our work in the industry.  A casual dining client recently ran a series of A/B tests on triggered promotions.  For the Welcome Offer, the client wanted to determine the better offer between the usual “$5 off” coupon or the richer “Free Entrée” promotion.  The data showed that not only did the Free Entrée perform better by far, but that it generated higher net revenue despite the bigger discount.  Understanding which offers perform better for which guests is a key insight that the client could leverage in future campaigns.

 

offerManagerDDI_chart2Let’s look at a second example from the same client.  After determining which Welcome offer provided higher ROI, the company ran a Birthday Offer test using two different subject lines.  In the original test, the control subject line generated the highest redemption and conversion rates.  However, when guests received a retargeting email, the subject line with the lowest open rate had the highest conversion rate (defined as redemptions by those who opened).  This is a key insight for the client – subject lines matter, just as the content of the offer matters.  When optimizing their promotions for future campaigns, there are multiple levers to push in order to influence guest behavior.

 Insights that you can use to proactively and predictably drive future results.  But first, you have to capture the data