Defining Your Ideal Customer - And Why It’s Important
As a restaurant owner, you may not be thinking about or prioritizing who your ideal customers are. But if you aren’t, you’re leaving money on the table. Today we’re talking about who your ideal customer is, how you can define them, and why you need this information for marketing. Let’s dive in!
Who Is Your Ideal Customer?
For marketers, knowing a brand’s ideal customer, or establishing what is called a ‘buyer persona’ is a way to define your target audience. While you may consider your target to be people whose money is green and bellies are empty, it’s not the most lucrative way to market your business. A buyer persona is a fictionalized representation of who your ideal customer is. Beyond being hungry - who are they? Where are they? This information can help you market to the most lucrative segment of your customer base and increase your restaurant’s profitability. Let’s look at an example for context.
Brandon runs an upscale restaurant in a downtown area of a mid-sized city. He’s noticed that he’s doing a great job of attracting tourists, but not locals. He knows that locals are more lucrative to his business, because they will be repeat customers more often than tourists. He starts by looking at local data on the city he’s in. He sees that there’s a growing number of people ages 35 - 45 moving to the area, and that their median household income averages $170,000. Then Brandon looks in his point of sale system to determine the average cost of a dinner for two at his restaurant, which is $250. By his estimates, this demographic moving to the city would be excellent customers, and be able to afford eating at his restaurant multiple times a year.
Why is this important?
To continue our example, let’s say that Brandon decides to target this demographic through his marketing. With his trusty marketing agency by his side, he sets a goal of creating an additional $100,000 in revenue. Based on his point of sale data, dinner for two averages at $250, so he would need to add about 400 restaurant visits from this campaign to reach his financial goal. His marketing team gets to work, targeting by location, age, and income bracket to make sure that these customers are aware of his restaurant.
His marketing agency even gets creative and decides to partner with a popular local realty firm. When the realty firm gives the new residents local information, they provide a coupon to Brandon’s restaurant to entice them in for an initial visit, where he knows his delicious food and excellent service will wow them. Within a month, the number of transactions in his restaurant is up by 75 visits, and well on his way to meet and then surpass his goal of 400 additional visits a year!
By knowing who your target customer is, having an idea of how old they are, their income and where they’re located, you can effectively target your marketing campaigns and spend your ad dollars wisely so you get the most return on investment in marketing. Sherane Chen LLC is here to help you identify your ideal customers, create campaigns, help you set goals, and increase the profitability of your restaurant. Contact us today or call (386) 627-3628 for a consultation!