Capozzi’s : How to Promote Your Restaurant Business: A Pizza Marketing Case Study

A Marketing Story by Welcomemat Services about capozzispizza.com

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capozzispizza.com

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Challenge

In 2005, local pizza restaurant owner John “Bud” Capozzi was seeking the answer to a pressing question: How to promote your restaurant business in the local community? Capozzi’s opened to create a casual family friendly atmosphere with mouthwatering menu items perfected from growing up in New York. Although Capozzi’s was establishing a great reputation with their customers, most new customers were acquired from word-of-mouth marketing. With a small location in a suburban strip mall that can hardly be seen from the road, Capozzi’s realized they needed a fresh new strategy to bring in new pizza customers and compete with some of the bigger restaurant chains in the community.

Solution

Welcomemat presented Capozzi’s with an innovative and turnkey approach to targeted direct mail marketing. The solution? A new mover marketing program infused with long-term ROI tracking and detailed demographics reporting. Capozzi’s branded direct mail piece for the Welcomemat Program features a one-time gift offer for a free 16″ cheese pizza. Offering a welcome gift brings in the customers who have the highest likelihood of coming back and paying full price for the next 5.6 years, rather than discount-driven customers who are often only as loyal as the next discount. Welcomemat’s patented data models allow Capozzi’s to target a certain amount of new movers every month to build a steady stream of new customers throughout the year. Capozzi’s also claimed exclusivity over their target area, allowing Capozzi’s to be the only pizza restaurant inviting new residents to try their delicious pizza. With a simple scanner app to scan in Welcomemat redemptions and unlimited ROI tracking to prove the program’s success, the results below exceeded Capozzi’s expectations!

Document Design

Results

The ROI from new pizza restaurant customers gained at Capozzi’s has outweighed the average monthly direct mail advertising costs for the Welcomemat Program month over month for 14+ years! Capozzi’s sees a redemption rate of 7% on the Welcomemat mailer, which is more than 3X the average direct mail response rate of 2%! Capozzi’s 14 years of Welcomemat redemption data show an average of 424 new customers a year from the new mover program. Utilizing national pizza industry standards for the average amount a typical pizza customer spends in a year, a marketing ROI of 667% after accounting for the Welcomemat Program costs can be calculated.