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Implementing text promotions for quick service restaurants

By Robert J. Wesley

Market researcher Gartner Inc. recently confirmed that one in five U.S. consumers are open to receiving promotions on their phones. The survey was based on 2,000 consumers in the United States.

For us in the mobile industry, this is not surprising news.

Mobile coupons and offers have proven to be a valid and highly responsive marketing channel as compared with traditional marketing channels.

Retailers, especially in the quick service restaurant (QSR) industry, can influence their customers' purchasing behavior at the "moment of decision" with what, when and where to eat, such as at specific times of the day or specific locations.

QSRs also can increase sales via their customers' frequency of restaurant visits and spend per visit.

Lastly, they can improve customer loyalty by eliminating the time-consuming need of having their patrons manually clip coupons. And with mobile promotions, QSRs can genuinely develop highly personalized one-to-one customer communications.

A number of QSR companies, such as Pizza Hut, Subway and Quiznos, have launched mobile marketing programs. A merchant trying to build on the mobile channel must understand the dos and don'ts to maximize this marketing medium and properly direct coupons and product information to their on-the-go customers.

Here are some best practices about mobile coupons that should be implemented by QSR retailers.

â?¢ Fast and easy enrollment process. QSRs can't be tied down with manually signing up customers who want to eat-and-run. The simplest way to have a consumer join the program is via a text-to-join using SMS service. There are now more than 150 million text-message users in the United States, and all handsets sold in the last five years offer SMS service.

Text-to-join is a process where a keyword is sent from a handset to a short code, which can be a four-, five or six-digit number approved by the mobile operators. While WAP applications are prettier, very few consumers can download them or have the functionality to use them.

â?¢ Opt-in process. To have a quality customer database, it's also imperative to have an opt-in process. A double opt-in process protects privacy invasion and ensures higher participation and satisfaction among users.

An opt-in campaign is effective because it is pull-based and voluntary, therefore reducing bad data and signups. With a strict opt-in agreement, patrons are also less likely to opt out further down the campaign road. It is best to strictly follow and enforce the Mobile Marketing Association's guidelines for the opt-in/opt-out process.

â?¢ Fast response measurement. Retailers need to reduce marketing campaign cycles from days to hours. They also require a quick response mechanism to the mobile offers so they have the choice of pulling the offers if they were not well-received. Or, QSRs should have the option of immediately altering the offer to help increase traffic and sales.

By communicating with their customers in real time via text messaging, retailers have an immediate measurement method.

â?¢ Delivery timing of the offers. A program must influence the restaurant patrons just when they are about to make their decision about breakfast, lunch or dinner.

If a QSR has an objective to increase its lunchtime traffic, for instance, the precise delivery timing of the offer is crucial. Thus, the SMS offer should be delivered approximately at 11 a.m., one hour before the noontime rush and about the same time customers are thinking about what they are going to have for lunch.

â?¢ Expiration dates. Because immediacy and instant feedback are critical elements for mobile offers, expiration dates of the offers are an important consideration. The shorter the time period for an offer, the better. Mobile offers should be valid for either a 24- or 48-hour time period.

â?¢ Recency and frequency. When communicating with on-the-go restaurant patrons, how many times should customers receive the offers -- daily, every other day, semi-weekly, monthly?

In order to avoid overburdening customers with too many offers, it is best to send one promotion per week. The expectation is that this grace period gives customers enough time to look forward to the next offer and does not frustrate customers with excessive over-communication.

â?¢ ROI metrics. Retailers need to gain unprecedented insight into influencing their customer buying behaviors with specific return on investment metrics.

Measuring the success of mobile promotions can be accomplished via several measurements: acquisition of mobile phone numbers, opt-out rate as well as response rates to the individual offers based on weekly store trips, weekly store sales and specific stores' fiscal-year revenue comparisons.

Changing where and how patrons dine, what to buy and when to buy can be accomplished with mobile promotions and advertisements. But a key element to mobile promotions' success is creating relevant and targeted offers. On-the-go patrons only want mobile offers that will give them value, not clutter.

Robert J. Wesley is president/CEO of Modiv Media, a retail interactive media delivery solutions firm in Quincy, MA. Reach him at .