What if you could entice potential restaurant guests with a mouth-watering promotion minutes before they enter the movie, concert, or event near you?
Then remind them to take advantage of your restaurant deal before they even leave the area?
With geomarketing, you can personalize every message and deliver it at the optimal time, increasing sales and brand awareness.
Before implementing a geomarketing strategy, you will want to assess your restaurant’s geomarketing return on investment (ROI). Measuring the gains and costs of location data paired with marketing can be tricky. Once you know what to look for, it’s easier to determine the value.
In this post, we’ll review why digital mapping is essential and explain how to measure the ROI of geomarketing while offering actionable tips like using MapQuest for Business, to support a business case.
Why is Geomarketing Important for Restaurants?
As local mobile ad spend grows, it gets harder to make your food and beverage brand stand out from the competition. Consumers expect relevant search results and won’t settle for generic sales messages or untimely promotions. Moreover, trying to reach customers using only internal data confines your reach.
However, geospatial solutions put your restaurant on potential guests’ radar, increasing interest, awareness, and sales. Plus, a tool like MapQuest for Business can reduce operational inefficiencies and improve your bottom line.
How Can You Measure the ROI of Your Geomarketing?
Proximity-based marketing can increase direct sales and make ad campaigns more effective while reducing internal costs. But, is it feasible for your restaurant? Once you figure out which figures to include, you can measure the ROI of geomarketing using this formula:
- ROI = (Gain from Investment – Cost of Investment) / Cost of Investment
Determine Potential Gains From Geomarketing
The benefits of geomarketing extend from customer experience improvements to operational efficiencies. To measure potential geomarketing gains, you must consider several data points, such as:
- Increased response rates for direct marketing campaigns
- Higher quality of website traffic resulting in more sales
- Brand awareness and reputation enhancements
- Guest experience improvements leading to increased loyalty and retention rates
- More effective ad targeting producing higher advertising ROI
- Savings from restaurant process improvements
- A reduction in delivery expenses
Find the Cost of Investing in Geomarketing
Each software and marketing solution and platform comes with a cost. However, your upfront expenses can pay for themselves quickly, which is why it’s important to remember that your ROI for the first month will differ from month three or five. Possible costs of geomarketing include:
- Building your system with MapQuest for Business
- Implementation of your digital mapping solution
- Employee training and workflow optimization
- Monthly subscription, support, and maintenance expenses
- Marketing and advertising costs
Calculate the Geomarketing Return on Investment
For accurate measurements, compute your estimated ROI for the first month or until you break even, along with calculations for long-term value. Tally the numbers in each category and put your figures into the formula. For example, if your restaurant earns $5,000 from using MapQuest for Business but spends $1,000, the formula looks like this:
- $5,000 profit – $1,000 expense = $4,000 / $1,000 expenses = 4
Turn this into a percentage by multiplying the result by 100. In our example, geomarketing resulted in a 400% return on investment.
Making the Business Case
You know that location intelligence increases sales and customer engagement, but how do you get restaurant leaders on board? Create a strong business case by helping restaurant owners visualize the problem MapQuest for Business solves and why it’s essential for growth. Build your business case by:
- Being confident that you have the right strategy
- Showing measurable results with a clear return on investment
- Providing an implementation timeframe
- Presenting statistics on expectations for personalized and localized promotions
- Offering details on how competitors use geomarketing to gain a competitive edge
- Revealing possible problems with failing to leverage location data
- Discussing the importance of partnering with a reputable company, like MapQuest for Business
Optimize Your Restaurant With MapQuest for Business
With hard numbers and an explanation of how location data adds value to your restaurant, stakeholders can visualize success. By investing in mapping and navigation technology, your food and beverage business can stay ahead of the latest consumer food and mobility trends.
Additionally, you’ll benefit from partnering with a trusted provider, such as MapQuest for Business. Learn how geomarketing can improve your restaurant sales by sending us an email at info@MapQuest.com or calling 1 (800) 827-7950.
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