Client Success Case Study: Menchie’s spent $657 and made a 53x return
Menchie’s frozen yogurt was founded by Danna and Adam Caldwell in 2007, opening its first store in Los Angeles, California. Since then Menchie’s has quickly grown into a popular choice for frozen yogurt enthusiasts with over 500 locations worldwide. Danna and Adam’s vision was to create a world class frozen yogurt experience and put a smile on people’s faces while doing it. Menchie’s delivers this experience by employing the 3-P principle: People, Place, and Product. Through partnering with CityGro to deploy customer retention marketing they have continued to grow and deliver on their promise of putting smiles on their customer’s faces.
Menchie’s transition to digital loyalty
As Menchie’s has grown in popularity so has their need for customer retention and marketing solutions. They wanted to be able to bring happy customers back into their locations consistently. CityGro has helped Menchie’s do just that by transitioning to digital loyalty and deploying custom retention marketing campaigns. This has been extremely successful for the frozen yogurt chain. For every dollar, Menchie’s has spent on customer retention marketing they have received $53 back! Most top marketing agencies are happy when they can get their client’s a 3 to 1 ratio, Menchies managed a 53 to 1!
In the following paragraphs, we are going to dive deeper into those metrics as we go over their case study. We feel very honored to serve Menchie’s as one of our valued clients and hope this client success case study will help to both educate and inspire others.
Leverage customer data collection
But first, repeat after me:
MORE MESSAGES SENT = MORE CUSTOMERS =MORE MONEY MORE OFTEN
Let me explain. You see, most brick and mortar businesses have steady foot traffic coming into their locations every week. Yet, there are two common challenges we see almost every small business facing.
- most businesses are unable to effectively collect, track, and communicate with their customers
- most businesses are not marketing experts and therefore are ineffective at reaching back out to those customers/promoting to them.
Customer retention marketing strategies
This is where CityGro can really help grow your business. We bring customers back to your locations using industry-leading customer retention marketing tools that collect, track and communicate with your customers.
Now, you might be wondering, how will bringing customers back into one of my locations affect my business? Let’s do some quick math if every customer came back into your business just one more time:
1,000 customers + $12 average spent at your business + 1 more visit = $12,000 in additional revenue!
Could you use an extra $12,000 in revenue this year? Of course, you could, and remember these people already like your product or service so it’s very easy to get them to come back.
Now, what if we could get every customer to come back one more time every month?
1,000 customers + $12 average spent at your business + 1 more visit per month = $144,000 in additional revenue!
Now, are you getting excited by the possibilities? You should be! Most businesses are not leveraging the loyal customer base they already possess!
How Menchie’s turned $1 of Marketing Costs into $53 of Revenue
So how did we use these tools effectively for Menchie’s?
First, we helped Menchie’s set up a digital loyalty kiosk (shown below). This helped Menchie’s capture their customer’s contact information and other valuable data. Most businesses have steady foot traffic but have no way of capturing their customer data or use outdated paper loyalty programs that hard difficult to keep track of. With digital loyalty kiosks from CityGro, this data is easily tracked and can be extremely valuable. Wouldn’t you like to know how many times people are coming back? How about their contact info so you can reach back out to them when you are having a sale?
Second, we set up customer retention marketing campaigns for Menchie’s in the form of text message campaigns. The more messages Menchie’s sent to their customer base, the more money they made!
Check this out, in 2016 Menchie’s spent a total of $657 to market to their customer base and earned a massive $53 for every dollar spent! The average visits per contact were 3.5, meaning more messages brought back more customers into their locations which resulted in an increase in sales!
Key takeaways from Menchie’s client success case study:
Collect customer data using a digital loyalty program. This makes customer data collection, tracking, and communication much easier and more effective. The loyalty program can be something simple such as buy 9 meals, get the 10th meal for free by signing up. Just ask for the name, email, and phone number and they are automatically entered.
Communicate with these customers, don’t be shy! Like we mentioned early in this case study, most businesses are not doing this which gives you the upper hand. Something as simple as a coupon for 20% off sent to your customers in a text message can dramatically increase your sales.
If you haven’t already, sign up for our 30-Day Free Trial and see how we can transform your business just like we did for Menchie’s!