Podcast Summary: Restaurant Strategy – Episode "Email Marketing By The Numbers"

Host: Chip Klose
Release Date: February 27, 2025

Introduction to Email Marketing in Restaurants

In the episode titled "Email Marketing By The Numbers," Chip Klose delves into the critical role of email marketing for independent restaurant owners. Emphasizing that email remains the preferred communication channel between diners and their favorite restaurants, Chip outlines how leveraging email effectively can ensure that a restaurant stays top-of-mind for its patrons.

“You need to stay top of mind. You need to be in the consideration set when they get hungry, so they need to think of you when it matters most.” [04:15]

Key Email Metrics to Track

Chip introduces several pivotal metrics that restaurant owners should monitor to evaluate and enhance their email marketing strategies:

1. Open Rate (22%)

   • Industry Average: 22%
   • Insight: Achieving an open rate above 22% signifies outperforming the industry standard.
   • Quote: “22% is the industry average for open rate. If you are beating that, you are winning.” [07:30]

2. Click-Through Rate (2%)

   • Industry Average: Less than 2%
   • Insight: Surpassing a 2% click-through rate indicates effective engagement.
   • Quote: “Average click through rate is less than 2%. So if you're getting a larger open than 22%, you're already winning.” [08:10]

3. Unsubscribe Rate (2%)

   • Benchmark: Keep below 2%
   • Insight: A low unsubscribe rate suggests that the content resonates with the audience.
   • Quote: “If your unsubscribe rate is below 2%, you are totally fine. You are not pissing people off.” [09:00]

Optimal Timing for Email Sends

Timing is crucial for maximizing email engagement. Chip identifies the most effective time windows for sending emails to restaurant diners:

1. 10:00 AM to 12:00 PM

   • Reason: Diners begin to plan their lunch outings.
   • Quote: “10 to 12. It's when people start getting hungry for lunch.” [10:15]

2. 3:00 PM to 5:00 PM

   • Reason: Patrons shift focus to dinner plans and dining choices.
   • Quote: “3 to 5. It's when people start fading from their workday and start thinking about dinner.” [10:45]

Additionally, for e-commerce related emails:

• 8:00 PM to Midnight (Weekdays) & Saturday Mornings
  • Quote: “If you have an e-commerce product between 8 and midnight, that is typically what I found are the best times to send e-commerce emails.” [15:30]

Data Capture Points for Growing Email Lists

A robust email marketing strategy hinges on effective list building. Chip outlines the necessity of establishing multiple data capture points:

1. Minimum of 5 Data Capture Points

   • Examples:
     • Reservation systems
     • Online orders
     • Digital waitlists
     • Gated Wi-Fi access
     • Website forms (footer, pop-ups)
     • Loyalty programs
     • Community or charity events
   • Quote: “Five is the minimum number of data capture points, meaning you have to be gathering information from a lot of different sources.” [12:00]

2. Implementation Tips:

   • Utilize digital solutions for waitlists.
   • Ensure emails are tagged appropriately for segmentation.
   • Leverage existing customer interactions to collect emails passively.

“If you're not harvesting the data from those capture points and using them to actually send communications to them, then that's a red flag.” [13:45]

Email Frequency and Content Strategy

Maintaining consistent communication is vital. Chip recommends sending a minimum number of emails per month and adhering to a focused content approach:

1. Minimum of 4 Emails Per Month

   • Frequency: Weekly
   • Higher Frequency: Brands with casual, frequent offerings may send up to 10-15 emails monthly.
   • Quote: “You’ve got to send at least four emails a month. You do the math. That is weekly.” [14:30]

2. One-to-One-to-One Principle

   • Concept: Each email should contain one message and one call to action.
   • Application: If discussing multiple topics (e.g., catering, new menu items), send separate emails for each.
   • Quote: “One email, one message, one call to action. This is an email about catering. Click this button to order catering.” [16:00]

Learning from Competitors and Industry Leaders

To refine email marketing strategies, Chip emphasizes the importance of studying other successful campaigns:

1. Follow at Least 50 Other Email Programs

   • Diversity: Include competitors, similar brands in different markets, and unrelated big chains.
   • Purpose: Analyze format, structure, voice, and promotional strategies to adopt effective tactics.
   • Quote: “Follow at least 50 other restaurants. Subscribe to their email list and learn from them.” [19:00]

2. Incorporate Insights from Big Chains

   • Rationale: Large chains invest significantly in marketing and offer valuable lessons.
   • Quote: “Make sure at least five or 10 of those 50 are big chains. They’ve already spent the money to learn the lessons.” [19:45]

Subscriber Growth Goals

Achieving a steady influx of new subscribers is paramount for sustaining email marketing efforts:

1. Minimum of 250 Net New Subscribers Monthly
   • Goal: Aim for 250 net new subscribers each month, with many restaurants achieving 500-1,000.
   • Annual Impact: 250 subscribers per month equate to 3,000 new subscribers annually.
   • Quote: “The bare minimum is 250 net new subscribers every single month. For most, that number is between 500 and 1000.” [21:30]

“It is a quantity game. Absolutely crucial.” [22:00]

Recap of Email Marketing Numbers

Chip concludes the episode by summarizing the essential metrics and strategies discussed:

• Open Rate: 22% (industry average)
• Click-Through Rate: 2% (industry average, aiming higher)
• Unsubscribe Rate: Below 2%
• Optimal Send Times: 10-12 AM and 3-5 PM
• Data Capture Points: At least 5
• Email Frequency: Minimum of 4 per month (weekly)
• Content Focus: One message and one call to action per email
• Competitive Analysis: Follow 50 email programs
• Subscriber Growth: Minimum of 250 net new subscribers monthly

“Email marketing is absolutely crucial. If you felt like you were in a fog, it was fuzzy. Here we go. I'm drill down. Chisel that stuff in stone.” [23:45]

Conclusion

In "Email Marketing By The Numbers," Chip Klose provides a comprehensive roadmap for restaurant owners aiming to enhance their email marketing strategies. By focusing on key metrics, optimal timing, robust list-building techniques, consistent communication, and continuous learning from industry leaders, restaurants can achieve predictable and substantial returns from their email campaigns.

Notable Quotes with Timestamps:

• “22% is the industry average for open rate. If you are beating that, you are winning.” [07:30]
• “Average click through rate is less than 2%. So if you're getting a larger open than 22%, you're already winning.” [08:10]
• “If your unsubscribe rate is below 2%, you are totally fine. You are not pissing people off.” [09:00]
• “10 to 12. It's when people start getting hungry for lunch.” [10:15]
• “3 to 5. It's when people start fading from their workday and start thinking about dinner.” [10:45]
• “Five is the minimum number of data capture points, meaning you have to be gathering information from a lot of different sources.” [12:00]
• “If you're not harvesting the data from those capture points and using them to actually send communications to them, then that's a red flag.” [13:45]
• “You’ve got to send at least four emails a month. You do the math. That is weekly.” [14:30]
• “One email, one message, one call to action. This is an email about catering. Click this button to order catering.” [16:00]
• “Follow at least 50 other restaurants. Subscribe to their email list and learn from them.” [19:00]
• “Make sure at least five or 10 of those 50 are big chains. They’ve already spent the money to learn the lessons.” [19:45]
• “The bare minimum is 250 net new subscribers every single month. For most, that number is between 500 and 1000.” [21:30]
• “It is a quantity game. Absolutely crucial.” [22:00]
• “Email marketing is absolutely crucial. If you felt like you were in a fog, it was fuzzy. Here we go. I'm drill down. Chisel that stuff in stone.” [23:45]

Final Thoughts

Chip Klose's episode serves as an invaluable guide for restaurant owners seeking to harness the power of email marketing. By adhering to the outlined metrics and strategies, restaurateurs can significantly boost their marketing efficacy, ensuring sustained patronage and enhanced profitability.