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New way to get restaurant SMS clients? - A Good Idea?

by XponentSYS
10 replies
Hey Folks!

I have an SMS "mobile rewards" program that I sell to local restaraunts. Nothing fancy here - most know the drill here.

We already have a fair amount of members but since the all LOVE the service, we want to ramp it up.

I was bouncing ways to do this off my girlfriend and she suggested that I create "accounts" for every restaraunt within 50 miles (hundreds) and just GIVE IT AWAY. Then, we'd just charge a fee for "redemptions".

The way it is now is more traditional - we bill a flat monthly fee to use the service for "x number of messages".

My GF, who is also a very savy business person reasons that HER WAY will have a higher close rate because it removes all the risk.

Obviously there are logical issues like tracking redemptions but we can do that.

What do you guys think? This method is UN TESTED but I'm thinking of testing it.

Thoughts?
#clients #good #idea #restaurant #sms
  • Profile picture of the author Aaron Doud
    Would be interested in the case study once tested. I really have no idea which would work better.
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    • Profile picture of the author XponentSYS
      Originally Posted by Aaron Doud View Post

      Would be interested in the case study once tested. I really have no idea which would work better.
      I don't know either. But alot of times we get into a situation where the restaraunt owners love the IDEA and they can see the value right away.

      But when "closing time" comes, some of them get stuck on the cost (risk in their eyes). It seems counter intuitive, I know but it is what it is.

      I was ranting about it when my girlfriend gave me this idea and I can't say it's a bad one.

      We own all our own infrastructure so number wise, I have the room to play with business models.
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  • Profile picture of the author javarog
    It wouldn't hurt to much to test it,Have you tried just charging them per text,, they pay for what they use?
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  • Profile picture of the author Mo Goulet
    I always give the services away for free for the first 30-days.

    Since I do not charge a per text fee, I can remove all the risks.

    I have a small index sized card that I give a restaurant owner that gets their attention immediately. You can see it and download it free on the top left of the following page.

    www.proapc.com/text.html

    Simply right click and copy it off the page.
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  • Profile picture of the author thomasmps
    there is a company called scoutmob that has a similar business model for daily deals and they are doing very very well rcieved millions in financing. Ben it should work,but what they do is charge X per each download of the coupon
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    • Profile picture of the author umc
      I'm new to the SMS game but here's what I just started doing. I produced table tents and have started sending them to local restaurants with a starter offer already programmed to their given keyword. They have a tent and can place it by their register and start immediately, and I give them and 30 days to try it out for free. They can contact me for more tents as needed.

      So far I've mailed out 30, and two local restaurants have at least given it a shot. I can look at their keyword and see that they texted in on it and gave it a try. So I know there is interest.

      My problem is that Im so busy in my regular offline business that I'm incredibly slow at getting my mailers put together, keywords set up, and actually mailing them out. I've got another 30 addressed and ready to stuff tonight when I get home. Not sure yet how it will turn out, but I think I'm along the lines of what you proposed.
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  • Profile picture of the author bigmaz
    Originally Posted by XponentSYS View Post

    Hey Folks!

    I have an SMS "mobile rewards" program that I sell to local restaraunts. Nothing fancy here - most know the drill here.

    We already have a fair amount of members but since the all LOVE the service, we want to ramp it up.

    I was bouncing ways to do this off my girlfriend and she suggested that I create "accounts" for every restaraunt within 50 miles (hundreds) and just GIVE IT AWAY. Then, we'd just charge a fee for "redemptions".

    The way it is now is more traditional - we bill a flat monthly fee to use the service for "x number of messages".

    My GF, who is also a very savy business person reasons that HER WAY will have a higher close rate because it removes all the risk.

    Obviously there are logical issues like tracking redemptions but we can do that.

    What do you guys think? This method is UN TESTED but I'm thinking of testing it.

    Thoughts?
    Hi XponentSYS

    I am looking to get into the SMS marketing in my local area. With no marketing experience, ouch... Anyway. When you say you will give it away free, what do you give away exactly? Will you make up your own deals for each restaurant and text them out? Or will you run the deals past each restaurant before you send them during the FREE period?
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  • Profile picture of the author Aaron Doud
    Any update on this?
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  • Profile picture of the author ATAC
    Thats is how I been doing it for years now.

    It is a great way to build a sustainable business....

    By giving a free trial you are going to build them a list of their customers fast that way you can sow them results .
    Well once you get about 100 to 200 of their customers on your SMS list ..You just got a customer for life... They will never leave you now because you can always go to there competition and charge double for your service with their customers on it...

    I still have all of my customers from day one...
    I outsource everything and have it set up to send messages every Mon & Tue twice a week we send out coupons or them ..All they do is text me there specials in the mornings on the day of which I have forwarded to my outsources using Google voice or now Google talk...

    You stand to make a lot of money if you do it right.

    Best of luck
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  • Profile picture of the author TrumpiaTim
    You may want to consider a full "freemium" model. From the initial posts it sounds like you're charging based on redemption which businesses may not like to here.

    Why not give the accounts away as a freemium business model, the first 50 redemptions are free and start charging after that. This way there's no risk to the business at all to get into SMS mobile marketing.
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