How to turn first-timers into steady regulars

Kamron Karington

Build Repeat Visits 2X Faster

Back in the day when I got good at attracting new customers...

...I quickly discovered - that was only half the battle.

Getting them back for a second visit is when the ride really begins.

That's because 5 out of 7 "new" guests will not return without some sort of follow-up.

There's a laundry-list of reasons why guests don't make it back... but it doesn't matter.

What DOES matter is that you can easily double your "second-visit" results with real simple stuff.

And a second visit doubles your chances of a third visit... pretty soon, a habit is formed (and you have to go out of your way to mess it up from there).

See where we're going here?

What you'll learn today:

1. Why having "good food" is helpful, but not a deciding factor

2. How to generate the all-important "second" visit

We start by erasing a restaurant-killing myth right now.

Question: Who makes the absolute best hamburgers on earth?

Doesn't matter.

The nearest McDonald's sells more burgers than they do.

My point is... good food is a huge plus. But it is zero guarantee of getting a newbie back for the all-important second visit.

Over the years, I've seen restaurant after restaurant with "the best food in town" crash and burn because they were too stuck up to give new customers any incentive to break other long-established dining habits...

...they simply assumed everyone that walked through the front door would return again, and again, and... "hey where'd everybody go? Why can't we pay the rent this month? Whut?"

Let's get started...

How to turn first-timers into steady regulars

MOST restaurants are in a spend, acquire, lose and start over freak-show pattern.

They're constantly on the hunt for "new" customers, but do nothing to convert the newbies into steady customers.

Consider this: Whether a customer buys from you once or a thousand times, your initial marketing cost is the same. The only thing that changes over time is your return on investment. Every time that customer makes a purchase, your cost to acquire that customer goes down and your profits go up.

So, how do we lock in the second visit?

A couple of ways.

1. Old school (but highly effective):

Imagine for a moment… you’ve just stopped by a restaurant for the first time. The meal was good. The service was good. But, something unexpected happens. As the server brings your check to the table – you notice a woman following. She waits just a second till the check has been presented – then say’s, “Hi, my name’s Kimberly Streeter, I’m the owner. I certainly hope everything was to your liking.”

With that said – she hands you a little envelope and says “It’s been our privilege to serve you today and I hope to see you again soon.” She smiles and walks away.

You open the envelope and discover a handwritten “thank you” card, signed by Kim. It also offers a free appetizer next time you visit.

What has Kim just done? She has made a rock solid impression on you, that’s what she’s done. The "owner" has made you feel special. She has acknowledged you. She said, “thank you.”

Plus, what Kim has also done that you are completely unaware of is – she has slipped you a “stealth” bounce-back. Heck, you didn’t even notice that till I just mentioned it. The bounce-back is disguised as a thank you card (free appetizer, remember?) Bang!

Even though a handwritten offer on a card is more personal, you can also use the high-perceived value of a gift card. Simply put a $5, $10, $20 (whatever makes sense) gift card in with the thank-you card.

Implementation:

1. Go to OfficeMax or Office Depot and buy their little boxes of thank you cards. They’re dirt cheap. Keep a specific pen handy for writing on these cards (always use blue ink).

2. Write out (or have someone with decent handwriting do it) something like this: “Thank you for stopping by. I really appreciate your business. And, please – use this card for a free (whatever makes sense) on your next visit.” Then sign it.

3. Now, the reason I want you to use a specific pen for these cards is this… if you can get the customer’s name – by all means, take out that pen and write their name on the top of the card, and on the envelope (don’t forget to put a little comma after it).

4. Then, servers and order-takers simply ask unfamiliar guests if this is their first visit... "have you dined with us before?"

Boom...

2. New customer conversion:

Do you have a loyalty program? If so, you can automate a conveyor-belt of repeat traffic.

Here's how you do it.

Place a "call-to-action" offer on your Yelp page.

Link it to your loyalty program sign-up page (ask only for first name, email, phone number, and birthday on this sign-up form).

This offer will contain two hooks.

Hook #1: The offer itself (free appetizer, $3 off, whatever makes sense for your restaurant). But make it a Yelp-only offer (not available anywhere else).

Benefits to You: An offer gives people an additional reason to try you for the first time, so you attract more spend-ready guests.

Plus, the "Yelp-only" offer gives your staff the "heads-up" that this guest came from Yelp... so you know this is most likely a first-timer. And your staff knows they better treat this guest like gold.

Hook #2: Bonus points. If your reward threshold is 100 points, award the guest 50 bonus points

just for enrolling in your loyalty program (more about this in a minute).

Because they joined your loyalty program to get the Yelp offer, your new guest is earning points for this first visit, plus they earned those bonus points when they enrolled.

Here's why that is critical...

Endowment Effect: Customers "endowed" with bonus points upon enrollment have a higher second-visit ratio than those who don't get the bonus points.

That's because the bonus points plus the points earned on the first visit, gets them within striking distance of earning that first reward. They are vested in making that second visit.

FACT: Keeping customers loyal costs a tiny fraction of what it costs to attract a new one.

Next week... the most ridiculously easy way to increase your take-home profit (in many cases by 25%). Yup. I did it. My clients have... and you should too...