Freebies for Foodies

MediaPost did a great little round up of free offers from various restaurant chains in the last few weeks. What they noticed was that several of these brands were able to achieve similar results to Denny’s without having to buy a SuperBowl ad:

Quiznos gave away a million subs in three days after using only banner ads, Facebook and Twitter presence and some free local radio exposure.

International House of Pancakes just completed its third annual National Pancake Day on Tuesday, in which it gives away a small stack of pancakes and in return asks customers to consider donating to the Children’s Miracle Network or a local charity.

Since neither of these programs received much traditional advertising support, they exemplify the power of well managed social media programs:

Social networking and restaurants are a logical match, says Reggie Bradford, CEO of social media marketing consultancy Vitrue. “Food is naturally social,” he points out. “Where do you want to eat? Do you want to grab something here? This is translating to online conversations around restaurant brands. We’ve seen tremendous adoption of social media strategies among QSRs and fast-casual restaurants.”

Combine social media with freebies, and you’ve got marketing dynamite. “Giving away food in these uncertain economic times obviously resonates strongly with consumers,” Bradford says. “Huge gains are being made by brands who are reaching out to consumers with something tangible.”

Given the economic “nuclear winter” that we find ourselves in, free is one of the few words that will truly turn heads. Sure, any moron can give stuff away free. The question becomes, can you give stuff away in such a way that you attract and then maintain new customers as well as reward existing customers for their continued loyalty? Denny’s certainly tried by doubling up their wait staff and making sure that the chefs were up to the task. I can’t speak for IHOP and Quiznos but certainly with all the store traffic their freebies generated, they had the huge opportunity, an opportunity made all the easier via social media.

Serving up Free

So what do you do when you have been around forever and newer brands seem to have passed you by? And yes, bitching and moaning won’t help. First, of course, you’ve got to talk to your lapsed customers and find out what’s wrong. Then you’ve got to fix the problem, typically by upgrading your product or service. And then you need to do something dramatic, something newsworthy, something disruptive that causes your lapsed customers to become reacquainted.

“Nice theory Drew but does it work?” You bet your sweet hotcakes it does. Just ask Denny’s. Denny’s? Yes, the very same brand that you have been driving by everyday and probably haven’t eaten at for 10 or more years. Denny’s who very familiarity caused it to blend into the landscape. Eight years ago, CEO Nelson Marchioli described his company as “in a ditch.” It took him most of that time to fix the food quality, add new products and get the service up to par. And once it was fixed, he knew they needed to do something dramatic to get folks reacquainted with his restaurants.

Marchioli is quoted in USA Today as saying “I’d rather give something away than discount it.” He added, “if I’ve got something that I think is wonderful, I want to get it into the mouths of customers.” Thus was born their “free Grand Slam breakfast” campaign that was kicked off with a three million dollar ad on the SuperBowl. The results of their $5 million marketing investment are nothing short of astounding:

  • Denny’s served roughly 2 million free meals on Tuesday (2/3/09)
  • The campaign generated over $50 million in PR coverage
  • Denny’s and related promotional terms like “free Grand Slam breakfast” were 5 of the top 40 search terms on Google Tuesday
  • Denny’s sold enough high-margin beverages to pay for the cost of the food
  • Denny’s generated tremendous good will among many of the customers that visited

“Free is an emotional hot button. When free is concerned, there is not downside” says Duke professor Dan Ariely. So Denny’s used the promise of free food to get back on consumer’s radar. Smartly, Denny’s was ready for the burst of attention both online and in their stores. Denny’s purchased several keywords to make sure consumers could find their local restaurant as they searched online. In-store, Denny’s doubled their staff to make sure their new customers had a positive experience.

Time will tell if this was simply a blip on the radar or a new beginning for old Denny’s. In the meantime, feel free to serve up something free to your lapsed customers and see what kind of sizzling response you can cook up.

Denny's hit a Grand Slam with this free promo
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