In hospitality, success depends heavily on repeat custom. Many marketers forget this and put their focus into gaining new ticket sales or bookings; however when 25-40% [1] of most business revenue comes from repeat custom, this channel cannot be ignored. Studies by Bain & Company state a 5% [2] increase in retention can lead to profit increases of 25-95%!
A sell-out event full of new customers is an amazing quick win, but what is your venue doing to ensure they visit again?
It’s likely that your hotel, restaurant, bar or events venue will have a basic database of information on past customers. This means you have the capability to reach people on a personal level; which can be used to increase loyalty and repeat custom through strategic email marketing.
At LeadDigital, it’s our opinion that email marketing is far from dead. In fact with the number of worldwide email users now topping 3.7 billion [3], plus the growth of email on mobile, it’s actually flourishing. How can email increase repeat business? Read our top 3 tips here below.
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1. The Personalised Approach
How well do you know your customers? Say for example, a person attends an event at your venue. Sure you have their name and contact details from the event booking, but what else?
For one you can probably assume their sex, potentially their age, and it’s likely you’ll have some insight into their interests based on the type of event they attended.
When it comes to email marketing, savvy marketers take this information and use it to personalise every interaction. You may even have experienced this yourself if you’ve attended an event and later received a ‘thank you for visiting’ style of email, addressed to you directly.
Sending a masculine-styled email to ‘Tim’ referencing the rock gig he attended 6 months ago & inviting him personally to a similar event, is much more likely to result in repeat business than a generic promotional message.
Personalised email communication enables more than just contact with existing clients. It also grants the ability to strategically target what you send, when it’s sent, and to who; maximising the return on each email. More importantly, regular personalised emails help maintain relationships with a group of people you know have bought services from you already!
2. Let Software Do The Hard Work
Automate Everything! Okay maybe not everything, but modern email marketing software does give businesses the ability to automate emails sent to existing customers. By utilising these features correctly, Hotels, Restaurants, Bars and other event venues can develop drip marketing strategies that increase repeat business.
What do I mean by drip marketing? Imagine a scenario where ‘Lana’ books a birthday party at your bar.
- First, you send Lana a personalised email confirming her booking.
- Next you remind Lana of her booking a week in advance and wish her a happy birthday.
- Two days after the event Lana receives another email, thanking her for choosing your bar and asking for feedback on her party. You learn she had a great time and particularly enjoyed the cocktails available.
- A few months later Lana receives an email, inviting her to an exclusive cocktails masterclass at your bar.
In this example, as she knows your brand, remembers her great party and loves cocktails, Lana books the masterclass event – job done, another repeat booking!
All of the above emails can be automatically sent, having been designed and scheduled well in advance – making email marketing scalable as your business grows. Working with an email marketing expert the right strategy can also save hospitality business time & money, that otherwise could be wasted on less effective marketing initiatives.
3. Make Existing Customers Feel Special
Leading on from the personalised approach above, email gives you the ability to make customers feel special, like they’re getting exclusive ‘backstage’ access to your Events Venue, Restaurant, Bar or Hotel.
People are becoming increasingly selective on who they give their email addresses to. When a customer gives you permission to contact them, they’re also telling you they have an active interest in your business. By picking up on core booking information and interactions, you can develop relationships that result in repeat business.
Wedding venues for example, know it’s unlikely they’ll get a repeat wedding booking from a recent bride. However that bride will have spent months comparing your venue with alternatives before booking, so clearly LOVES your location.
Email marketing gives you the perfect opportunity to make her feel special and remembered. People who feel valued, are both likely to book on another occasion and recommend your business! For example, how about emailing the bride just before her wedding anniversary, inviting her to an exclusive dining experience to relive their special day?
Exclusivity is a big deal in hospitality email marketing. At LeadDigital one of our clients is the luxury London private yacht company, Woods’ Silver Fleet. Their brand is associated with hosting luxurious functions & celebrations on the Thames, and LeadDigital are responsible for their email marketing strategy. Our greatest email successes for Silver Fleet have come from targeted, personalised invites which make previous clients feel remembered and important.
Conclusion
Email marketing for repeat custom can generate impressive revenue returns for your hospitality brand. Making your past customers feel special and taking a personal approach to communication builds trust & loyalty, resulting in more ticket sales, bookings and event enquiries!
LeadDigital are officially recognised email marketing experts, with over 20 years email marketing experience, specialising in strategies that increase revenue and grow customer loyalty. Need to improve your email marketing profit, then speak to us – we can audit current processes, develop a bespoke strategy and help you get the most from email!
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References
[1] The Importance Of Repeat Customers. SumAll. 5 April 2013
[2] Customer Retention Is King. Forbes. 21 January 2015
[3] Email Statistics Report 2017-2021. The Radicati Group. February
[4] Hubspot Alternatives. Serchen 2022
