Successful strategy for Restaurant Pieterman

The Volendam restaurant Pieterman wants more reservations at off-peak times. They are partnering with WL Deals, a regional version of Social Deal. Every quarter, one deal comes online, running for a fortnight. In these two weeks, 3,500 tickets are sold to eat at Restaurant Pieterman at a reduced rate and this can be reserved for that quarter. The deal is very popular and always sold out. Guests really wait for another deal to come online.

The content of the deal is Volendam Tapas + a bread basket for a fixed price. Through WL Deals, guests receive 40% discount, in addition, commission per cover is also paid to WL Deals. Normally, the Volendam Tapas + bread basket cost € 44.30 p.p. Via WL Deals, after deduction of the discount (40%) and the commission (21% after discount), Restaurant Pieterman retains € 21 per cover (excluding drinks). So the selling cost per cover via WL Deals is €23.30.

Challenge

Restaurant Pieterman submitted the following questions to The Fully Bookers and we gladly accepted this challenge:

1. How do we become less dependent on WL Deals and sell more deals through our own channels?
2. How do we reduce selling costs and maximise profits?

1 Becoming less dependent on WL Deals

We did a test to see if we could make Pieterman less dependent on WL Deals and to explore whether we could reach the right target group with a deal through their own channels as well. In doing so, we also wanted to try to increase the number of guests signing up for the newsletter as this is an inexpensive way to reach them with future deals. The deal could be booked through a formitable ticket and was paid for immediately upon booking.

2 Reduce selling costs, maximise profits

With a deal through their own channels, they did not have to remit commission to WL Deals. The 'own' deal was the same as WL Deal's and looked like this:

1. Unlimited Volendam Tapas incl. basket of bread in advance
2. Normally €44.20, now €26.50 (40% discount)
3. Available from 7 November to 28 November
4. Reservations possible until the end of the year

So the only variable was that it was offered through its own channels. To further reduce sales costs, we also looked at ways to increase newsletter subscriptions. This will allow them to reach these guests cheaper and better in the future.

Strategy

This is how we approached this.

Step 1: On Monday, we sent out a mailing to regulars as a reward for coming to eat more often. We also explicitly mention that in the newsletter that they have the first choice and that the deal will come online for the general public later that week.

Step 2: On Friday, it was the loyal followers' turn. Four days after sending out the mail, we posted organically on Facebook & Instagram about the deal (see attachment). We deliberately chose Friday because people then read the message over the weekend. To make sure we reach Pieterman's loyal followers and regular guests, the post was promoted on the timeline, among remarketing audiences (engagers and website users) through a campaign.

Step 3: The final step is the general public. On Monday, so a week later and after regular guests and followers had a chance to take advantage of the deal, the general public got to see it. Through campaigns on social media, the message was promoted to new audiences in the Volendam, Edam, Hoorn and Purmerend region.

Result

1. Deal sold out in 14 days
2. 830 tickets sold
3. € 21,995 turnover realised
4. € 4618.95 commission saved

Result of campaigns

1. 860 people reached
2. € 161.54 budget spent
3. 60 directly measured reservations (average 3.32 covers per reservation)
4. 199 directly measured couvert
5. € 5273.50 turnover directly measured through campaigns
6. Selling costs per cover €0.81

Long-term results

With this result, restaurant Pieterman has gained enough confidence that they can also promote deals through their own channels. WL Deals has been scaled down to 1,200 tickets per quarter instead of 3,500. Their own deals will continue to be promoted through campaigns and newsletters. A successful strategy, then. Wondering what else we have done for clients? Take a look at the other customer cases.