CHINA BAR SIGNATURE
China Bar Signature (CBS), an Asian Buffet Restaurant, was a resounding success and a benchmark for buffet restaurants in Australia. Located in a business park in the Southeastern suburbs of cosmopolitan Melbourne, CBS’s customers are mainly suburban families and couples. During lunchtime though, the diners mainly comprise of retirees and the workers from the business park.
THE SITUATION
Weekday lunches were quiet, performing between 20% and 50% seating capacity.
THE PROBLEM
CBS’s profitability was not maximized as:
- Most costs are fixed;
- Seating capacity is fixed;
- Weekend lunches were overcrowded, performing
between 100% and 120% seating capacity;
- Weekday lunches were quiet, performing between only
20% and 50% seating capacity.
THE SOLUTION
A “Buy 2 Get the 3rd Lunch Free” Promotional Campaign (Campaign) that was valid only during weekday lunches. Purpose of the campaign was to encourage diners to visit CBS during weekday lunches, filling up the seats to maximize profitability.
What is “Buy 2 Get the 3rd Free”?
Every 3rd customer in the same group would eat for free during a weekday lunch. The customer only needed to present a coded voucher to get the discount. The voucher could be obtained through 2 very simple methods:
Online
- Visit http://www.chinabarsignature.com;
- Fill up and submit a form;
- Print the e-mail that CBS sends.
Offline
- Get a copy of one of the magazines that CBS advertised in;
- Fill up the form;
- Bring the form to CBS during a weekday lunch.
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| THE AMAZING RESULT |
CBS received 5110 applications to receive the “Buy 2 Get the 3rd Lunch Free” Vouchers, and collected a total of 1214 Vouchers from its customers.
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| WHAT DID CBS GET OUT OF THIS CAMPAIGN? |
Direct Revenue Increase
Average daily customer numbers increased by 75%, and average daily revenue increased by 74%.
New Loyal Customers
Statistics show that for every Voucher used there were 5.2 diners, so the 1214 Vouchers brought CBS approximately 6312 customers.
A survey was also given to all customers who used the Vouchers, and 48% (3029) responded that they were new customers who had never dined at CBS before. 98% (2968) of these responded that they will return and will bring families and friends along.
Brand Awareness
The Radio Advertising, Print Publications, Website Tell-A-Friend Function, Facebook Link, and Word of Mouth aspects of the Campaign not only promoted the Campaign, but also served the purpose of promoting CBS as the perfect dining destination. CBS successfully saved on unnecessary advertising costs by promoting the restaurant through the advertising campaign on promoting the “Buy 2 Get the 3rd Free” Vouchers.
Database
CBS acquired a massive database of 5110 customers’ details from application of the Vouchers. CBS’s e-newsletter subscription, also managed by GXM, has also increased significantly during this period, but we do not wish to claim that it is entirely due to the Campaign. The Facebook page, which now belongs to CBS, is another source of database collection, giving CBS more access to its potential customers.
Return On Investment?
Based on CBS’s investment in the campaign, and the amount of customers who used the Vouchers to dine at CBS (6312), minus the discounts that have been given, we have computed that CBS’s ROI on the Campaign is at 739.21%. Impressive. |
| SUMMARY |
CBS approached GXM with a unique situation where we decided to employ a target promotional campaign. CBS benefited greatly from the Campaign, including Direct Revenue Increase of 74%, 3029 New Loyal Customers, Brand Awareness, 5110 Customer Database, and an incredible ROI of 739.21%. |
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