Ask Michelle Gardner, and she'll probably tell you breakfast is the most important meal of the day. Gardner, marketing manager at Caf Express Restaurant Holdings LLC, used a breakfast promotion to test the effectiveness of various marketing channels e-mail, traditional mail and social media. The test, which launched in mid-September, brought a lot of newness together into a single effort. The Caf
Ask Michelle Gardner, and she'll probably tell you breakfast is the most important meal of the day.
Gardner, marketing manager at Café Express Restaurant Holdings LLC, used a breakfast promotion to test the effectiveness of various marketing channels — e-mail, traditional mail and social media.
The test, which launched in mid-September, brought a lot of newness together into a single effort. The Café Express fast-casual chain hadn't extensively used targeted marketing or social media. Furthermore, Café Express has been offering breakfast items only since May, and the offer was for a free breakfast valued at $3.99.
But Gardner was eager to explore new direct channels, as she had seen direct mail work successfully for McAlister's Deli, her previous employer.
Direct response firm Dukky provided the test's infrastructure, creating personalized, barcoded mailings designed to mimic the feel of gift cards. The pieces also feature PURLs, personalized Web addresses incorporating the recipient's name.
Not Perfect
Gardner acknowledges that the test has its flaws. The original design called for 20,000 e-mail efforts to target recipients in Houston, with 20,000 mail pieces sent to consumers in Dallas. (The two cities, aside from making up the major part of Café Express's footprint, demographically offer a valid A/B split, Gardner says.) This would have allowed the chain to compare channel response on a head-to-head basis.
But the URL for those in the Dallas direct mail test was in a testing stage when the effort was sent out, Gardner says. Dukky and Café Express added an additional 20,000 e-mail names to the Dallas effort so there would be enough data from the city.
Why weren't consumers in both cities sent efforts through both channels? Café Express locations didn't have the scanners necessary to determine whether a given customer was approached via e- or traditional mail, and Gardner hoped assigning each city a unique channel would enable the chain to gain a quick read on redemption rates.
In addition to claiming free breakfasts themselves, recipients could post the offer to a variety of social media sites like Facebook, LinkedIn or Twitter. According to Gardner, 722 recipients — roughly 1.2% of the total number of consumers contacted — shared the offer through social media. Those doing so were entered into a drawing for a $100 gift certificate.
Was this a good percentage? Unlike the 2% standard applied for decades to undifferentiated direct mail, the social media channel is too new to have set expectations. Still, Café Express seems satisfied with the results.
Says Gardner: “722 may not seem like a lot, but with the average user having between 250 and 300 friends, that's a big number. You are exposing your brand to many more people than just the one who responded.”
The numbers for online sign-ups look even better, with 3,882 individuals — almost 6.5% — logging on and volunteering information about themselves. Gardner estimates that 40% of those came through social media channels.
The Dukky program provides a dashboard that allows executives to track at any given moment how many people were at each stage of enrollment, whether just logging on, filling out a questionnaire about demographics, casual dining habits and food preferences, or completing the process and activating their cards.
The dirty little secret of the offer was that folks didn't have to go online to activate their cards, Gardner acknowledges. Restaurants gave out one free breakfast to all who presented cards, and during the month the program lasted, served up 1,100 breakfast tacos, sandwiches, pastries and accompanying beverages.
The Results
The Café Express campaign did more than just stimulate brand awareness and sales, although half of those activating their cards were either brand-new or infrequent customers, based on answers to a questionnaire each filled out as part of the sign-up process. Demographic questions confirmed what the chain's core customer looks like: a woman in her 40s with a household income in excess of $100,000.
Was it worth it? Gardner says the average check per customer is around $9. Café Express anticipates a 20% return on investment above the $30,000 price tag of the test once participants return for paying visits, and that's without taking into account its market research benefits. And, the 3,882 individuals who activated their cards online are primed for further communication.
The ultimate validation is a test continuation. In 2010, Gardner anticipates doing tailored direct mail campaigns with Dukky to drive traffic to each of the chain's 17 locations.
