Mark Rummel is the owner of Mancino’s in Fenton, Michigan. He recently joined for a quick update on how he is faring with our marketing systems for his restaurant. A short five minute video.
“I wanted to update you on our overall success of the Birthday Mailer you mailed for us. We redeemed 54 gift certificates out of 185 mailers sent. That’s a 29.18% return with a cost of only $294.15. Our total sales were $2335.62 which gives us a 1 to 8 ROI. So we made money with cold birthday’s mailers and, as you can see, we now can measure results unlike radio or TV ads. How sweet is that? However, the best part is that we acquired 54 new customers this month with absolutely no work on our part! We love your system. If this continues throughout the coming months, we could have well over 650 new customers this year. Dean when I first saw your unique approach to cold birthday mailers I knew they were winners and you proved me right. Thanks!”P.S. I’ve dropped those other people that I was using for New Mover mailers and plan on only using your systems starting this month.
Michael Thibault, Waves Restaurant, St. Clair Shores. MI.
“Here’s a success story for you! Last month your cold birthday mailers helped us have the 2nd largest weekend in sales ever! The only exceptions have been Mothers Day and New Years Eve. My wait staff is excited and we are rocking and rolling. The fun is back in this business. Let me give you my statistics on the mailers; we had an 18% return with over $7305.18 in sales and a net of $2995.43. Plus, we gained 203 new customers. Do you think were excited? You Bet!!
Thanks to you and your personalized mailers, we have had not only a great weekend, but a great month. With all the New Customers coming in and the other Marketing Ideas from you, our business increased over 4% from last year, which is much better than most everyone else in the Ohio area.”
Bob Scofield, The 356th Fighter Group Restaurant & Banquet Center, North Canton, Ohio
“Thanks for working so closely with us to make our mailers effective. You are very easy to work with and the mailers are bringing in lots of new customers. We are getting about a 25% redemption rate on the cold birthday mailers you are doing for us. The initial purchases are enough to cover our mailing costs, so we are essentially getting new customers for free. As you know, we just increased the number of mailings each month because the system is working so well. Thanks Dean!”
Randy Blair President of Pizza and Pipes Santa Clara, CA.
“Just a note to let you know how much we like the cold birthday mailings. June was our third month and we are simply amazed with the results. There was a small change that I wanted to make and it was as easy as one phone call. Everyone in your office is wonderful to work with. Looking forward to working with you for a long time to come. We are currently sending out over 1000 mailers per month and with a redemption rate of 15.3%, that’s over 150 new customers per month. What a great investment!!”
Rodney& Carla Miller, Stoll’s Country Inn Restaurant, Bakery & Catering
Evansville, IN and Linton, IN
“Wow, your cold birthday mailers are a huge success! With over a 29.83% response, it was all we could handle. Frankly, I’ve used other direct mail companies with little or very weak return and was extremely surprised and pleased with the response we received. Thanks for working with us on our birthday mailers. You really helped to make them a big success and we appreciate your quick response to the changes we requested for our next month’s test.”
Coleman Anderson, Wolftrap Restaurant, Vienna, VA
“Working with you is a real treat. He “gets it” – results count. You completely understands our kind of marketing. He is not only ready, willing and able to make recommendations, but he is also eager to test changes for better results, then tweak and test AGAIN for even better results. You also add a tremendous amount of value with his creativity and slight twists on proven marketing pieces.”
Craig Neubecker, Zebra’s Bistro and Wine Bar, Medfield, MA
“This was our first attempt at Cold Birthday mailers. We mailed out to a 3 mile radius with minimum income and frequency of dining out demographic requirements. We sent out 773 mailers and had a GREAT response. This really opened our eyes to what we could do with birthday mailers. Most of the customers redeeming the coupons seemed genuinely appreciative of our “gift”. Many commented on how original the concept was. Almost all the customers were first timers that have passed us by but just never got a chance to stop in. We immediately called Dean and increased our radius to 4 miles. With a base of 773 we had over $4000 in profit. We hope the new radius will continue to track the same. We are sending two different bounce back offers and we’re going to track which one works better. We need more like this one!”
Dennis Thacker, Ragona’s Lighthouse, Allentown, PA
“Just a quick note to let you know how well our Cold birthday mailers are working. We received a redemption rate of 16%! That’s 34 people that came in. Now here’s the best part… they spent $1700 with a net profit of $421.24! So, not only did I acquire 34 new customers, I made a great profit! Thanks to you and RMS for helping me expand my marketing efforts.”
Clark Covey, The Homestead, Walla Walla, WA
“Hi,
I wanted to let you know about our Birthday and New Mover mailers campaign. Both of them have been a great success with the birthday mailers receiving approximately 15% to 16% redemption rates and new mover mailers just slightly lower. We are very pleased with the results. Both systems make us money and continue to bring in a boat-load of new clients, which is exactly what we need!
Also, our new customers have been complimenting us on the personalization of our mailings. Can you believe they actually noticed all the hard work that you’re doing to insure that they open our mailers? Well, keep it up it working!
Also, we would like to compliment you and your staff on how easy it is working with you and how quickly you respond to our requests. For example, when we asked you to place our granddaughter’s picture on our postcard, you did it without hesitation. Thanks so much for a system that brings in new customers and doesn’t cost us an arm and a leg like yellow pages (which I have now dropped). Thanks again!”
Michael Clark, Ed & Joe’s Restaurant, Tinley Park, IL
“Hi,
Just a quick note to say your mailings are unbelievable. You mentioned sneak-up mail getting your pieces opened… well I really thought your mail was hand-printed, not off a laser printer! Also, the real specialty stamp, not the same old bulk flag stamp really made it special and I was totally fooled! Keep up the great work!”
Peggy, Apple Holler, Sturtevant, WI
“Just wanted to give an update on how GREAT your birthday program is. We have averaged 20-22% response consistently in all six locations for three months straight! It is absolutely NO WORK, other than bringing the box to the post office when it arrives. I strongly recommend you to all restaurant owners.
Thanks again,”
Rob Ryder, ROR Restaurants
“I just wanted to share with all of you the huge success we’ve had with the Cold Birthday Mailings. For those who don’t know, the company will send gift certificates to people near the restaurant who are not already in your database. They’re valid during the month of their birthday. We had been e-mailing our own certificates, and usually sent out an average of 275 certificates per month. Over the past 4 months, we averaged a 20 percent return of these certificates. This generated average sales of $3789 per month.
We started the Cold Birthday Mailings in January, with 589 certificates sent. In just the first week, 48 of the certificates were redeemed in our restaurant, generating $2867 in sales. By the end of the month, we’ve had a total of 194 certificates redeemed…that’s 33% of all that were sent out! And best of all, our sales from this promotion came to $11,413! This helped our sales increase by 22% over last January. We believe that many of these people have never been to our restaurant, and we hope to give them a wonderful dining experience in order to get them to return!
Just wanted to share this success story with all of you who may not have tried this yet. Please feel free to email me if you have any questions.
Thanks,”
Chef Jeff Baldwin, J. Baldwin’s Restaurant & To Go
“Hi,
I wanted to send you a quick note to let you know how well your “New Customers Now” system for direct response birthday mailers is working. When we first saw your system, both Henry Duchscherer and I knew it was something unique. However, we didn’t realize how well it would perform. Of course you told us how great the program was but as my mother would say, “The proof is in the pudding!”
Well, we now have several restaurants using your system and all of them are excited! Not only about the number of new customers, but also the positive ROI they are obtaining from your mailings.
Based on their check average and a guess of 38% cost of goods, we figure that one customer is getting a ROI of more than $20,000 a month! The same customer has increased his purchases from Sysco by 50% over the previous months and two others have also increased their purchases.
We can only hope that more of our customers see the value and let you bring them the New Customers Now System!
Thanks… Keep up the great work and we will continue promoting your systems!”
Kevin McCardle, Business Review Manager, SYSCO Food Services
“Here’s a quick note telling you about our outstanding success with your monthly birthdays. We are redeeming between 18-20% of the letters we send out. Our customers love it and say that we are the only ones that have sent them something on their birthday! We are making a great impression on our clients – plus we can measure our success!”
Phil Morrow, Khaki’s Fresh Food
“We really love your monthly birthday and new mover mailers to acquire new customers. As you know, I’m opening another store and one of the first things I’m going to do is start your birthday and new mover programs. Just like everyone else, I’m so busy that I don’t have time to send out letters by myself. It’s great that you do everything for us, even the stamping!! Thanks for having such a great system that works!”
Bob Furlani, Sonny’s Restaurant, NY
“Hi ,
Just a quick note to say thanks for all your excellent birthday mailers. Here’s an update of how we’re doing. We are using you in all 3 stores, Kansas, Oklahoma, and Missouri and have recently increased two stores to over 750 mailers each! Our returns are unbelievable and we’re making more money and seeing new people every month! You and Shannon always respond quickly to any of our requests so keep up the good work!”
Jim West, Kobe Steakhouse, KS
“Shannon,
I wanted to let both you know what an essential part you’re playing in our total marketing system. As you know, we are planning on having the largest month ever at Langley’s. Consequently we are doing not only your monthly birthdays, but our house anniversaries, ½ birthdays, and secret shoppers. We know that you get response, can handle all our mailers, and we make money! Thanks!!”
Fred Langley, Langley’s On The Green, CA
“Here’s a quick note about our successful cold birthday mailers. Our store is in a new area without a major suburb close by. We asked you to extend our radius to ten miles to include the next nearest town. Even though you recommend only using a five mile radius, your mailers are so effective that we are still receiving over a 12% redemption rate with our ten mile radius. Thanks for working with us on our mailings. It’s sure great to have a system in place that’s all done for us each month and that makes us money rather than wasting it on newspaper or yellow pages!”
Aylmer Given, Aylmer’s Grille, NH
“We are so happy with your birthday mailers I had to let you know what took place this week. On Tuesday and Wednesday, the place was so busy they had to call my son and myself into the restaurant. He was pressed into cooking and I had to greet, bus tables, and even do some dishwashing. What a great feeling to see all of these people flocking through our door mid week. Thanks for your unbelievable mailers.”
Sylvia Kilcup, The Place Restaurant, WA
“We have been getting between 125 to 200 redeemed on 1000 to 1300 birthday mailers being sent. So with our 20 dollar discount, we get $10,000 to $12,000 in sales, after the 3 to 4 thousand comp, we are netting about $5,000 to $8,000 being spent by customers when they come in on their birthdays. So this definitely seems to be a winner! The un-measureable component of these mailers is that people will come up to us and thank us for thinking about them! Even if they didn’t use their certificate, they say it was so nice that we offered and were thinking of them. They say this to me, my dad, and my mother. This program is the equivalent of a hand-written birthday card in today’s world. So this has definitely generated a lot of positive feedback in the community. Thank you.”
Grant Pivec, Piv’s Pub, Cockeysville, MD
“Hi,
I was a very, very skeptical person who hated the idea of discounting when I heard you talk about how well your system worked for acquiring new customers. I thought “Oh sure, another advertising guy telling me how well he could bring new customers into my restaurant.” I had tried all of the conventional stuff, so I figured why not try something new and different, like your monthly birthday mailers!
Well, your stuff really does work!! I started out with just 300 mailers a month and have already increased to 800 mailers per month after only 2 months. I have seen over a 20% redemption rate and a very positive ROI. Thanks for the great system and working with me to target the right customers, instead of the customers I don’t want!”
Hunter Clark, Broussard’s Cajun Cuisine, Cape Girardeau, MO
“With just ONE MONTH behind us using your promotion, we had 99 customers come in with your certificates! That’s a redemption rate of 25% and a boost in sales of around $8,000! The best part of your promotion is that about 75% of these new customers were actually NEW customers, who have never been to our restaurant before! Giving them a gift for their birthday was a great first impression! Thanks for a great marketing idea that really WORKS!”
Angelo and Renia Marini, Sal E Pepe Restaurant & Bar, Newtown CT
“We started using the cold birthday mailings over 6 months ago. We have seen as a high as 34% response and it has been profitable every month, all by itself. The greatest benefit is that we add several life time guests to our house list and our guest counts every month thanks to this great program. We even get calls and get stopped in the store or the post office with people thanking us for remembering them on their birthdays. We are going to keep doing this for a long time to come. Thanks Dean and please thank all of you staff too. You’ve been great to work with. Very easy and automatic. Thanks again.”
Tory Nelson, The Wapiti Restaurant & Pub, Estes Park, CO
“Hi,
Just a quick note to let you know our results from your Birthday mailers. We had the biggest May ever in our 10 year history. With a whopping return of over 33% and 413 redeemed coupons, that’s a lot of new customers! You wouldn’t believe how many people asked, “How long have you been at this location?” I tell them 10 years and they say they have lived in the area for 8 years and never knew we were here! It just goes to show you that you can’t take anything for granted.
Most of my advertising wasn’t working, but your program sure does! You have put the joy back into my Restaurant, even in Michigan’s sluggish economy!”
Mark Rummel, Mancino’s of Fenton, Fenton, MI
“Your half mailers were the talk of my guests. The cleverness of the half letter in the half envelope was a proverbial Home Run and allowed for an easy conversation starter for my new clients. Our guests used these at the same rate as they did the other birthday coupons, therefore It allowed me to send out double the coupons each month which gave me double the redemption’s. The half birthday program was an certainly one of the more successful campaigns that I ran in 2008.”
Todd McKenzie
Chix Restaurant, Streator, Illinois
About 1/2 of all restaurants have a birthday rewards program for existing customers…you know…”tell us your birthday and we’ll send you a coupon” kind of thing.
Unfortunately, most restaurateurs don’t realize that birthdays are a great (mostly untapped) way to reach customers who have never been to their restaurant.
In fact, birthdays are the most celebrated holiday on the planet, and almost 70% of Americans go out to eat at a restaurant to celebrate!
Here’s how to take advantage of this:
1. Find a list of people who are having birthdays next month in your community (Google “buy birthday lists” for options),
2. Remove the names from the list of your current customers,
3. Write a letter about your restaurant and offering a gift to “come in and try”,
4. Send the letters out to the list (minus the current customers)!
It’s really that easy (and really that hard).
We’ve been doing this for restaurants all across the nation (400+) and have seen response beyond all expectations.
When movie studios first observed the emergence of VHS and the first “movie rental” places started popping up, the studios were afraid to death. Same goes for movie theater owners.
But, instead of replacing movies and the local movie theater, take-home rentals did little to dent the business. All of the hand-wringing was for naught…both prospered.
I am constantly reminded of the same kind of hand wringing in marketing (especially with the strong push on Twitter, Facebook, etc.).
Apparently, one of the preeminent marketing minds in the world agrees, here. (If you read only a few blogs, Drayton Bird’s blog should be on your short list)
So, instead of dropping direct mail and conventional media for “web 2.0″, consider doing both and not putting all your eggs in one basket.
Espeically in this economy, If you want to survive, you need new customers.
Any business, in order to attract new customers needs to be able to identify the group of customers:
1. whom you can specifically identify and economically reach,
2. with a specific problem to solve,
3. with the desire to spend money to solve that problem,
4. willing to act within a time frame you can live with.
You’d be amazed at how often businesses of any stripe (especially new businesses) have none of these.
Businesses error with #1 by trying to sell to “everybody”.
They error with #2, by trying providing a huge variety of products an services.
They error with #3 by trying to entice sales through deep discounting and coupons.
They error with #4 by running the same promotions to the same groups with no end in site.
A good marketing strategy keeps all four of these items in mind, and then puts the tactics in place to attract the new customers any business needs.
Funny article from Chicago.
Here’s an interesting quote from the New York Times:
“We’ll see some weeding out,” he said one recent lunch hour, sitting in a near-empty Applebee’s dining room overlooking 42nd Street. Noting a restaurant above him and another across the street, he said, “One of the three of us is not going to be here.”
Full article here.
Don’t be one of the weeds! We can help you fill those empty tables now!
National figures from the New York Times:
Since 1990, the number of restaurants and bars has grown to 537,000 from 361,000, a 49 percent increase, according to the National Restaurant Association. Population in the United States grew 23 percent in that period.
Amid the seeming prosperity of a credit-fueled era, people got in the habit of eating more and more of their meals out. The association’s statistics show that 48 cents of every food dollar is now spent at restaurants, compared with 40.5 cents per dollar in 1985.
Ohio Statistics from the NRA:
NRA still predicts Ohio will have 1.3 percent growth in total restaurant sales in 2009. However, that number is next to last among the 50 states. Only New York falls below Ohio at 1.2 percent growth.
Face it, we are not going to grow our way back to health. Different tactics and marketing methods need to be employed to fill empty tables.
Do you think newspapers are a good advertising option in the future?

Got your numbers? If not, take a minute and look at the previous couple of posts and get them…
OK, here we go.
Using the hypothetical numbers we already used, we know that a first time guest who becomes a long term (3 years) customer is worth $700. (see part 1 of this series below)
Now, let’s assume that we are pretty average at turning first time customers into long time guests (here Non-Perfect World). Let’s say that just 20% of new customers turn into those valued, long-term clients.
We now know, with a great deal of confidence, that we can spend up to $140 to entice a new customer to come into our restaurant. (For you math wizards, I’m multiplying the value of the long term customer, $700, by the likelihood that new guest will turn into long term customers, 20%)
Keep in mind, that’s NOT what we can afford to spend for every new guest that ends up being a long time customers. It’s what we can afford to spend in order to entice any first time guest into our restaurant – and still make money!
Stunning, isn’t it?
Also, not reality. I know.
Nobody spends that much in getting new customers into a restaurant with an average ticket of $18, like our hypothetical place could do.
But, now you understand why Amazon.com early on knew they could spend $33 for every new customer to their site. They knew the lifetime value of a customer,they did the math, knew how much they could really afford, and now they are making about a $1,000,000,000 (Billion with a “B) per quarter.
Now, I am not suggesting that you go out and start spending $140 per new visitor. What I am suggesting that investing in marketing can be a wise business decision that you can prove to yourself.
Even a modest investment of $30-40 for each new visitor in the right marekting plan can be a wise choice for most consumer businesses.
But, you need to do the math for yourself, just live we’ve done in the last few blog entries, in order to make that decision.
Welcome to Non-Perfect (imperfect?) world.
Here in Non-Perfect world, we have to make some educated guesses in order to make good decisions. In Non-Perfect world, if we waited until we had all the facts, verified them and tested them, we would never do anything, including crossing the street.
So, if you find yourself answering some of the questions in previous posts with words like “It’s all over the board”, or “I have no idea”, or “It would take me a month of Sundays to calculate that”. It’s OK!
Nobody (especially small and mid-sized businesses) has solid data to prove everything they’d like to know. If you wait to have data on everything, you’ll catch Analysis Paralysis and never achieve any of your goals. You can’t know everything about everything.
But, here’s the thing: You know your business better than anybody else in the world. You know it better than your accountant, better than your wait-staff, better than your spouse.
So use your knowledge (and your data when available) and plug your numbers into the formula below and get an understanding what a new guest is worth when they turn into a frequent guest.
Then, use your knowledge to answer one more, very important question: How often do first time guest become long term guest? To put it another way: How confident are you that when a new guest shows up and samples what you have to offer, they’ll return a second, third and forth time?
It’s important, because it’s the number you’ll need to know to calculate with great certainty how much you should spend in getting new customers.
Some business owners are really confident. “Man, if they’ll just try me once, they’ll be customers for life”. Some are not so confident: “New guests rarely become long time customers. I see them once, and then not often after that.”
Go ahead, take your time and think about an answer, here in Non-Perfect world. Is it 5% of the time that first time guest become long term cusotmers, or is it closer to 80 or 90%?
Pick a number. You are gonna need it.
We’ll continue with Part 3 next time.