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our universe - Toppers Pizza Franchise Opportunity

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SECTION TWO<br />

how does this relate to what we do? Well, we’re able to do both of these things on a modest budget<br />

because (as you’ll see later on) <strong>our</strong> on-point messaging reaches the right target at the right time.<br />

in effect, this helps yield a high rate of return for franchisees.<br />

in the consumer decision j<strong>our</strong>ney, people will make their initial purchase from companies with<br />

whom they feel a connection. Future purchases will be made with companies they feel familiar with.<br />

at <strong>Toppers</strong>, we swing both ways. errr, we play for both teams. umm, we’re bi…no…we eat from both<br />

sides of the hot dog. hmmm. at <strong>Toppers</strong>, we embody both. We satisfy both.<br />

here Are A feW more inTereSTinG<br />

TidBiTS ThAT mAKe <strong>our</strong> ComPeTiTion<br />

ShAKe in Their KniCKerS:<br />

• 96% of customers who have a bad experience don’t report it. 91% of those<br />

don’t do business with you again.<br />

• Dissatisfied customers tell 10 or more people who will never do business<br />

with you.<br />

• It costs five times as much to recruit a new customer as it costs to keep an<br />

existing customer.<br />

• The probability of selling to a new prospect is 5-20% while the probability<br />

of selling to an existing customer is 60-70%.<br />

• When we talk about loyalty, we’re not talking about punch cards. Loyal<br />

customers form emotional bonds with y<strong>our</strong> business that aren’t going to be<br />

broken when the place down the street offers their product for a discount.<br />

We’re looking at you, Domino’s and Papa John’s.<br />

• Loyal customers effectively deserve a seat at the<br />

table for choice-making opportunities.<br />

26<br />

SECTION TWO<br />

other than us, cmpanies... whoops, sorry about that typo, we were too busy patting <strong>our</strong>selves on the<br />

back. anyways, other than us, one company who also excels at retention marketing is Zappos.com.<br />

on any given day, approximately 75% of purchases are from returning customers and those repeat<br />

customers order at least 2.5 more times in the next 12 months. Zappos’ repeat customers have higher<br />

average order sizes. First-time customers in Q4 of 2006 racked up an average order of $111.98 and<br />

returning customers during the same quarter spent an average of $143.22 per order. That’s a sizeable<br />

amount of clams when you think about all the people ordering from their site. Take a look below if you<br />

don’t believe us.<br />

$1B<br />

900M<br />

800M<br />

700M<br />

600M<br />

500M<br />

400M<br />

300M<br />

200M<br />

100M<br />

$0M<br />

ZAPPOS.COM GROSS SALES S<strong>our</strong>ce: © 2009 Zappos.com, Inc.<br />

2000 2001 2002 2003 2004 2005 2006 2007 2008<br />

27

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