One of the biggest challenges that our pizza restaurant faces is the threat of competition from other restaurants in our area. Though we did have great success twenty years ago, the choices available to our potential customer have increased and in turn, they are less likely to frequent our establishment.
Even though the food that we serve is the best in our area, we don’t have the lowest price. Since the economy is not doing as well as we would all like, we have seen a decrease in customer retention and frequency of orders, which in turn has led to a decrease in revenue. This put us in a position where we would either have to reduce the price of our pizzas, or work harder to get more customers.
In our case, we decided that we would take a more proactive approach and use direct mail marketing to increase our customer base. We decided that contacting prospective customers and offering them the opportunity to try our pizza at a discount would let people know what they were missing and in turn increase both customer retention and profits.
Since we purchased consumer mailing lists and sent out our marketing materials, we have seen a 15% increase in business, with many of these new customers placing repeat orders. In fact, the response has been so good that we are going to make it a part of our regular marketing strategy.
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