Fanminder Blog

If you’re a restaurant, this is a must-read just in from Wall St Journal: http://on.wsj.com/bGmZsz

Key excerpts amount to a playbook on the amazing benefits of free food giveaways.

Out of the 600,000 people who entered the Denny’s contest, 450,000 opted to join the Denny’s Rewards program, which regularly emails updates on new menu items and specials. Denny’s bets these emails will draw more loyal customers to its 1,545 restaurants, Mr. Dillon says.

Jesse Martin camped out overnight this month outside a San Marcos, Texas, Chick-fil-A for a chance to win a year’s worth of chicken sandwiches. The Atlanta-based fast-food chain gives away free meals for a year to the first 100 customers at new stores’ grand openings. So far, Mr. Martin, a 34-year-old college pastor from Austin, Texas, has been to five Chick-fil-A grand openings and won at four of them.

Subway in February announced a food giveaway to promote its “Five Dollar Footlong” sandwich. In it, 71 winners will win free sandwiches for a year, amounting to a $260 gift card. Subway was able to add 400,000 customers to its marketing database with the promotion, says Tony Pace, the company’s chief marketing officer.

An estimated 30% to 40% of free-food coupons are redeemed, says Mr. Flickinger. By contrast, just 1.5% to 2% of coupons offering discounts are used.

This video contest helped add about 68,000 new customers to Quiznos marketing database. “That’s the best way to advertise,” says Trey Hall, chief marketing officer for Quiznos.