Here's a question you should be asking. How do I determine what kind of money to spend

on my marketing? Well, the real question I think is what's a customer worth to you? If

you don't know what a customer is worth to you, you really need to nail it down. I've

seen plenty of studies, you know, restaurant-wide, but you should look at your average ticket

item. You should figure out how often you think your customers are coming back to visit

you, and if you changed a few things, maybe you could get them to come back a little more

frequently, then how frequently would that be and what would they be worth. I think you

should be thinking in terms of the lifetime value of the customer. Here's a very good

example. One of our customers owns a deli, and her average ticket for a customer is right

around $14, and she thinks that her customers visit her once a week, so that means that

her customers are worth about $700 a year. Now, I guess you could argue how long these

customers would be customers of hers for a lifetime, but I think it's safe to say that

if you're doing a really good job and people like your restaurant, and they're coming in

there about once a week, there's no reason that they won't come back to visit you for

as long as they are in the area. Well, if you figure that the average person moves about

every seven years, I think seven years is actually a pretty good time. So her lifetime

customer is worth seven times $700. That's not bad for a deli. She's approaching a $5,000

value for a customer. So when it comes to getting that customer

and hanging onto that customer and getting that customer to buy more product from you,

your efforts should be around about thinking in terms of that person is worth about $5,000

to you. They should also be thinking in terms of well, how could I make that person maybe

worth $10,000 to you. How could I get them to come back more, or how could I get them

to spend more on average with me when they're here. This is part of your strategic thinking.

Your strategy should be around these kinds of things. What do I need to do to get people

to come more often, spend more money, and get more of them in my store? You need to

understand who they are, what they're doing, what kind of money they're spending. Do some

math, really understand what they're worth to you, and then kind of back into how much

can I really afford to spend because I think that people shortchange themselves on this.

They start thinking, "Oh, I spent too much money on marketing. I've spent too much money

on that advertising campaign that didn't work out." It needs to be thought of in terms of

what is it costing me to get a customer, what is it costing me to keep a customer? What

is it costing me to get that customer to spend more? That's the formula for growth, and you

need to do it from a standpoint of what is it really worth to me, so do some math, think

about your customers, think about your ticket items, think about how maybe you can increase

those ticket items, and think about how you can increase frequently, and think about how

you can get more people to come into your restaurant because if you want to hit your

goals, you got to understand what are they worth to you, how frequent can I get them

to come visit me? How can I get more of them, and how can I get them to spend more money

with me when they're here? If you're thinking in terms of those things, you're thinking

in terms of growth, and it all starts with really understanding the value of your customers.

Hey, if you liked this video, there are over 20 more of them. All you got to do is go to

this website, type in www, here let me help you, www. just enter the website, go there,

totally free. Enjoy yourself.

Restaurant Marketing - How Much Money Should I Spend on Marketing?

Here's a question you should be asking. How do I determine what kind of money to spend

on my marketing? Well, the real question I think is what's a customer worth to you? If

you don't know what a customer is worth to you, you really need to nail it down. I've

seen plenty of studies, you know, restaurant-wide, but you should look at your average ticket

item. You should figure out how often you think your customers are coming back to visit

you, and if you changed a few things, maybe you could get them to come back a little more

frequently, then how frequently would that be and what would they be worth. I think you

should be thinking in terms of the lifetime value of the customer. Here's a very good

example. One of our customers owns a deli, and her average ticket for a customer is right

around $14, and she thinks that her customers visit her once a week, so that means that

her customers are worth about $700 a year. Now, I guess you could argue how long these

customers would be customers of hers for a lifetime, but I think it's safe to say that

if you're doing a really good job and people like your restaurant, and they're coming in

there about once a week, there's no reason that they won't come back to visit you for

as long as they are in the area. Well, if you figure that the average person moves about

every seven years, I think seven years is actually a pretty good time. So her lifetime

customer is worth seven times $700. That's not bad for a deli. She's approaching a $5,000

value for a customer. So when it comes to getting that customer

and hanging onto that customer and getting that customer to buy more product from you,

your efforts should be around about thinking in terms of that person is worth about $5,000

to you. They should also be thinking in terms of well, how could I make that person maybe

worth $10,000 to you. How could I get them to come back more, or how could I get them

to spend more on average with me when they're here. This is part of your strategic thinking.

Your strategy should be around these kinds of things. What do I need to do to get people

to come more often, spend more money, and get more of them in my store? You need to

understand who they are, what they're doing, what kind of money they're spending. Do some

math, really understand what they're worth to you, and then kind of back into how much

can I really afford to spend because I think that people shortchange themselves on this.

They start thinking, "Oh, I spent too much money on marketing. I've spent too much money

on that advertising campaign that didn't work out." It needs to be thought of in terms of

what is it costing me to get a customer, what is it costing me to keep a customer? What

is it costing me to get that customer to spend more? That's the formula for growth, and you

need to do it from a standpoint of what is it really worth to me, so do some math, think

about your customers, think about your ticket items, think about how maybe you can increase

those ticket items, and think about how you can increase frequently, and think about how

you can get more people to come into your restaurant because if you want to hit your

goals, you got to understand what are they worth to you, how frequent can I get them

to come visit me? How can I get more of them, and how can I get them to spend more money

with me when they're here? If you're thinking in terms of those things, you're thinking

in terms of growth, and it all starts with really understanding the value of your customers.

Hey, if you liked this video, there are over 20 more of them. All you got to do is go to

this website, type in www, here let me help you, www. just enter the website, go there,

totally free. Enjoy yourself.