May 7, 2005

Red Lobster’s e-newsletter members spend more

Here’s a great story about how Red Lobster markets to its email newsletter list (780,000 members and growing) with giveaways and coupons. When people sign up for their "Overboard Club," they  get a special occasion coupon ($5 off), and are entered into their "Passion Prize" drawing for a dinner for two, lobster delivered to your door, or a vacation.

They combine their email campaign stats with website analytics to measure ROI. Their results are very interesting…

Their results?

  • 62% of coupon recipients redeem within 48 hours.
  • Members spend more time at their website
  • Members spend 10% more on gift card purchases
  • Members spend 6% more on live lobster

Some other interesting tidbits:

  • They send newsletters about once a month, and
  • they mix is up with offers, rewards, and surveys.
  • Their best day for sending is Tuesday.

And of course they use double opt-in for their subscription process:

Friedman admits that the Red Lobster’s double opt-in policy could
hamper growth. But there is no sign that it has. "We felt it [double
opt-in] was the most appropriate way to respect our consumers,” he
says. “Also, from a legislation standpoint we don’t want to be lumped
in with other people who don’t do it right."

Check out the article here: