Restaurant chain Shakey’s Pizza Parlor achieved a 10 percent conversion rate on a one-day mobile coupon offer it sent out to opted-in consumers.

Shakey’s has been working to create a database with consumers’ mobile phone numbers by urging them to opt-in via several marketing channels. It then pushed out one-day-only mobile coupons to customers who opted-in and significantly boosted foot traffic to its locations.

“Shakey’s primary goal has been couponing and driving in-store traffic, which they have been very successful with,” said Dan Lansman, senior vice president at Options Media, Boca Raton, FL. “As they have built this database, they can use it for sweepstakes and surveys.”

Options Media Group managed the SMS campaign for Shakey’s.

This was Shakey’s first mobile initiative.

The campaign
Shakey’s promoted its opt-in SMS program through a number of marketing channels, including advertisements on radio, print and in-store.

The company tested the efficacy of the various marketing channels by assigning each a different keyword, and then comparing the results

The keyword that generated the highest volume of responses was “PIZZAPARTY.”

That call to action was placed at the point-of-sale in participating Shakey’s locations.

“The goals were to build a mobile list of customers,” Mr. Lansman said. “We were testing various forms of advertising – radio, print, in-store.

“We gave a good discount to entice people to text in,” he said. “Shakey’s is a great brand with loyal customers.

“We were able to build a sizeable list in a short amount of time.”

On May 29, Shakey’s pushed a one-day offer to 9,800 consumers who opted-in to redeem a free medium pizza.

Here was the call to action:

“Thanks from SHAKEY’S PIZZA. Get 1 FREE MEDIUM PIZZA, today only, 5/29. Dine in only. Present this text to cashier. Not transferable.”

More than 1,000 consumers who received the text redeemed the offer.

Another message Shakey’s pushed out to 14,223 consumers on July 26 read:

“Shakey’s salad bar only 99 cents. Good today 7/26 after 2PM only. Dine in. Show text to cashier. Limit one. Nontransferable.”

Mobile drives in-store traffic
A number of restaurant chains have been using mobile tactics to drive foot traffic to their locations.

For example, Chili’s Grill & Bar offered coupons to customers who checked-in to its restaurants via mobile social network (see story).

In addition, Starbucks pushed sales of its Frappuccino drinks with an on-air SMS call to action at MTV’s Movie Awards this summer (see story).

“The reason we think SMS is effective is, first, the immediacy of it,” Mr. Lansman said. “Unlike direct mail or email, people are on their phones and check messages within minutes or seconds.

“Unlike email, it’s convenient – customers can check while in the store,” he said. “A combination of factors and overall return on investment make mobile an ideal format for a lot of different casual restaurants and any type of retailer.

“The key thing is being able to opt-in while you’re in the store.”

Final Take
Peter Finocchiaro, editorial assistant at Mobile Commerce Daily, New York