Last year my daughter's-girl-friend's-mother gave my wife a call about going over to the new California Tortilla store for a freebie. "Write down this password and give it to the order taker," she told my wife. The offer was only good that one hot day in July. My wife met many other folks that we know from our daughter s school and that was on a Thursday, and they were all in line waiting to get a free meal. Returning again on Sunday for a paid meal we met some of the same folks and met other families that we know.I thought the giveaway was pretty clever, not to mention a low-cost marketing program to produce a loyal following. Once in the store on a second visit we were asked, "would you like a free frequent buyers card?" After so many purchases customers are entitled to another incentive and again I think with the viral marketing mixed with the loyalty program the cost of doing business is less, much less say than advertising in the Yellow Pages. Not only is this type of marketing cost effective, measurable results are produced that lead to more and predictable types of marketing. Their Burrito Elito loyalty card is web activated and allows members to lookup points from their past purchases. For followers visiting the California Tortilla website and joining Taco Talk newsletter, a free taco (bottom of page) could await you if you reside near a store location.
Several months have passed and we continue to frequent California Tortilla. Revisiting their website I found that they expanded their franchising efforts and are using Webinars to attract interested franchisees. Management at California Tortilla use social sites Facebook, Twitter and incorporate FourSquare to promote local deals by geo-positioning. The telephone remains an insignificant part of their business model and about the only reason to call them is to setup a catering order. Their stores are equipped with POS and phones yet California Tortilla seems to remain connected with their loyal following using social media instead. I spoke with Bob Phillips, President and Stacey Kane, Director of Marketing to get a sense of how they feel about social media. Bob said, "Social media keeps our fans engaged." Stacey told me, "Our marketing model is awareness, trial and usage."
Do Social Media Tools Deliver? challenges the ROI, and effectiveness is still questioned by some No Jitter readers. California Tortilla started in 1995, is a Maryland company located 30 minutes from my office. I don't recall hearing of their company until last summer (2009). They ve now expanded into five states and to the District of Columbia (D.C.). Recently, I was reading, "That Sneaky Exponential--Beyond Metcalfe's Law to the Power of Community Building" by Dr. David P. Reed. What s interesting is how Dr. Reed uses Bob Metcalf, inventor of the Ethernet, as a launch into arguing why social or "community building" is valuable and relevant. He writes:
I've discovered that some network structures create total value that can scale even faster.... Networks that support the construction of communicating groups create value that scales exponentially.... I will call such networks Group-Forming Networks, or GFNs.
When you read Dr. Reed's arguments you could conclude maybe this is academic artistry. Dr. Reed also goes on to say, "So paying attention to network value is a crucial strategic issue, especially as businesses move their customer and supplier relationships into the net." Check out Dr. Reed's Group Forming Networks Resource Page for more info. Value is something we all are familiar with but still is there a hard dollar return?
Both Bob and Stacey went on to tell me that store sales rise above 20% of prior sales when they engage customers. One success that California Tortilla realizes is that the "secret password promotion is viral and people will come in--get some items free but they go on to spend in excess of the average ticket."
They struck a nerve last summer and since then I m glad I persevered and got a connection there. The key in understanding how California Tortilla is successful is "awareness, trial and usage"--their marketing model that fits using the social media medium perfectly. There s nothing better than having customers act as sales agents for good old fashioned word-of-mouth marketing. So maybe the question for your company/industry should be re-defined as, "Is social media a good fit?" Then addressing "how" should be telling as to whether or not it even makes sense to follow the herd.
