Know-How Exchange : Strategy

If I were asked to increase sales by at least 10% next week, I would have started in the summer when I noticed sales dropping.

Most things you can do that will be dramatic short term will cost you profit and most likely revenue too in the short term. You can offer discounts - BOGO's - with the hope that you will increase the number of customers. The parameters here are: 10% off, you'll need to increase sales 22% to make up for the revenue drop per unit. BOGO - you need 220% of present sales in units to make up for it. If your client's price elasticity is right, this may work. If price is keeping them away.

As far as the a text campaign, you're right, the first piece is making sure the clients accept the technology. The present older clientele may not be right for that technology. Additionally, it takes a very good offer to get people to enroll - a free meal, for instance. That's not going to get you where you want to go short term - because like MOST marketing activities, you're looking for LONG TERM effect, not short term.

Your client has compounded the problem by having had problems, fixed them, and not promoting the rectification. So, any actions taken for short term impact are made less effective by the negative reputation.

I just had a similar conversation with one of my clients this week. He was bent on getting an email message out to 1700 prospects aiming at selling his product. Having analyzed the buying process, we had determined that many on the list will need his product sometime, but few will be looking just now. So, he could send out a very targeted message to find the 17 or so who might be looking right now and risk the rest opt out - forever, or be patient with the marketing campaign. plant seeds and grow over time.

The same is going on here. Most short term actions will either be ineffective or will damage the business long term or both.

The best thing you can do is level with your client: 10% or more in a week most likely won't happen. And any actions that would make it happen would ruin his business for the next week and month and year. It's time to institute some basics.

First, who is the appropriate target customer for what he can do - his core competencies? Older people? Kids? Families? Health-inclined people?

If he needs to change his market target, then he'll have to understand how to attract the different market. For instance, if he wants to attract the HS kids, he'll need to understand their needs and wants. for instance, is the reason the HS kids don't stop there really because of cost perception or do they just like burgers and fries better than chicken. Or is it because they don't want to eat in a place aimed at older people? (Note: Older people aren't usually spend-thrifts so if they thought McD's was "cheaper," they'd be there too).

If he's a franchise (KFC, for instance), he may not be able to change his target and then the task at hand would be to get more of the corporate target demographics in. Understanding his geography would be valuable. How many of the targeted demographics are in his geographic target area? What is his brand recognition in that area?

If he's not a franchise, how much control does he have with his menu? Could he offer food for a new target? Like chicken sandwiches and fries for students?

Some things he might offer than would attract students and not scare away his present customer base:

1) Ask some of the older folks if they would volunteer to tutor HS students in English, Math, Science - whatever subjects they would feel comfortable doing and then offer the students a "Tutoring Hour" after school. It's probably a light time at that time of day anyway. Have "Tutoring Hour" specials - Tutor/Tutee BOGO on Chicken Sandwiches, free drinks with a sandwich and fries, and so forth. You wouldn't be cannibalizing your present business because chances are you don't have any at that time anyway.

2) Get a couple X-Box360's and have a Guitar Hero tournament after school. For every meal, you get a "slot" in the tournament. If you lose, you get another change to compete again if you buy another meal. You can offer other games on different days, too.

3) Offer special student discounts. This brings in extra revenue versus giving everyone a discount

4) Offer coupon books for students - for $19.95, they get 5 sandwich meals - normally priced $4.99

These things will take time to ramp up - they most likely won't result in 10% in a week. But, it's a way to change the target market.

I hope this helps.

Wayde