Part 3: Email Service Providers for Bakeries and Restaurants

Introduction

In today’s competitive landscape, bakeries, cafes and restaurants must utilize every tool at their disposal to engage with their customers effectively. One of the most impactful methods to accomplish this is through email marketing. On part three of our email marketing series, we delve deep into the world of Email Service Providers (ESPs). From understanding what they are, to identifying the features that matter most to you, this guide will equip you with the knowledge to choose the best ESP for your business.

What is an Email Service Provider (ESP)?

An ESP is essentially a software platform that allows businesses to send mass emails to their subscribers. These could include newsletters, promotional materials, event invitations, and more. Understanding what an ESP is can help you identify your needs and the tools that can best meet those needs.

Identifying Your Email Marketing Goals

Before diving into the technical aspects of ESPs, it’s crucial to outline your goals. This initial step will help you determine the features and metrics that are vital to your business. Here are some common email marketing goals:

1. Driving website traffic: If your goal is to direct more people to your website to see the latest menu, learn about catering, sign up for your loyalty program, and more, you’ll need to focus on metrics like clicks and click-through rates. This is what takes the subscriber out of their inbox and onto your website.
2. Increasing sales: While all operators aim to increase sales, if this is your primary objective, prioritize ESPs that offer robust tracking capabilities. Specifically, look for platforms that integrate with your POS system and provide comprehensive dashboards to monitor revenue directly attributed to your email marketing efforts.
3. Building community: If you’re keen on hosting community events and limited-time collaborations, tracking RSVPs and/or pre-orders becomes important. Some ESPs allow users to RSVP directly within the email, or you can insert a button or link that will take the user to a landing page to fill out a form.
4. Feedback and insights: If you’re looking to converse with customers, focus on features that allow you to gather and share feedback. Think about embedded surveys or polls to inform menu development and improve the customer experience. Make sure to highlight testimonials from highly satisfied customers.
5. Customer retention and loyalty: To foster customer retention and loyalty, seek an ESP that enables deep segmentation and tracking of customer behavior. This will allow you to send highly personalized messages and recommendations based on their past purchases. Also consider offering exclusive deals and loyalty programs to incentivize repeat visits.
6. Growing your customer database: If growing your subscriber list is your main aim, focus on metrics related to subscriber growth (how many people are part of your email list over time) and opt-in rates (how many people who visit your homepage fill out the form to join your email list). As part of this goal, you’ll want to create engaging, valuable content so that you minimize unsubscribes.

Metrics to Track

To gauge the effectiveness of your email marketing campaigns, certain metrics should be closely monitored:

1. Clicks and Click-Through Rates: These metrics gauge how many people interacted with your email by clicking on links. A high click-through rate indicates that your content is engaging and relevant.
2. Conversion Rates: This involves tracking how many email recipients completed a desired action, such as making a purchase or signing up for an event.
3. Deliverability: This metric indicates how many of your emails actually reach your subscribers’ inboxes. High deliverability rates are essential for effective email marketing.
4. Bounces: Emails that fail to reach their intended recipients can be categorized as soft bounces (subscriber’s inbox is full or temporarily unavailable) or hard bounces (email address does not exist). It’s important to minimize the hard bounces to maintain a clean email list.
5. Unsubscribes and Spam Complaints: Keeping track of these metrics can help you understand which content may be off-putting to your audience.

Wait…what about open rates?

Open rates were once a primary metric for email marketing success, but their reliability has decreased over time due to changes in email privacy settings. While they can still offer insights into initial engagement it’s essential to benchmark the numbers against your own historical performance. Aim for at least a 20% open rate, but look to other engagement metrics like clicks and replies to gain a comprehensive understanding of your email marketing effectiveness.

Essential Features of ESPs

Different ESPs offer various features, but there are some basics that you should look for:

1. Behavior tracking: Basic statistics on who opens, clicks, and unsubscribes.
2. User-friendly interface: Whether it’s drag-and-drop or pre-designed templates, the platform should be easy to use. Typically, ESPs from POS systems like Square and Toast care less about interface and more about data. This means you may be limited with some design elements.
3. Segmentation and personalization: The ability to categorize your audience and personalize emails is vital for effective targeting. The infusion of AI into ESPs allows for advanced segmentation and customer insights.
4. Split testing: Also known as A/B testing, this feature allows you to test different versions of your email to see which performs better.
5. Automation: Scheduling and automating email sequences can save you a lot of time.
6. Integration: Ensure that your ESP can integrate seamlessly with your existing POS system and loyalty programs.
7. Great customer service: When you run into tech issues (and you will), you’ll need easy access to the customer support team. Phone over email support is best.

Legal Considerations

Understanding the legal aspects of email marketing is crucial to ensure you remain compliant with regulations:

1. CAN-SPAM Act: This U.S. legislation requires you to include an unsubscribe link in your emails and honor unsubscribe requests promptly. Modern ESPs should do this automatically for you.
2. GDPR: Applicable to businesses in the European Union, GDPR requires companies to obtain explicit consent before sending marketing emails. Several U.S. states have passed their own consumer privacy laws that offer similar protections, including California, Colorado, Connecticut, Utah, and Virginia. Just because you’ve collected a customer’s email address doesn’t mean they’ve provided express sent to email marketing messages.
3. Bulk email rules: On February 1, 2024, Google and Yahoo started enforcing new requirements for bulk email senders. The guidelines largely focus on three areas: authentication of outgoing emails, reported spam rates, and the ability to easily unsubscribe from email lists. You’ll likely need technical support for the first.

Recommendations for Email Service Providers

Depending on your level of comfort and requirements, here are some recommendations to consider:

1. For those already using major POS systems: POS system-based ESPs such as Toast, Square, and TouchBistro offer seamless integration and are a decent starting point.
2. For those who want user-friendly features: Platforms like Mailchimp, Constant Contact, Klayvio, Flodesk, and Emma provide more features and sleeker interfaces, but require some setup. Not all have direct integrations with your POS or provide templates and automations specific to the food and beverage industry.
3. For advanced users: If you’re managing multiple locations or require more robust features, consider options like Thanks, Bikky or Lunchbox.

Looking for a more comprehensive marketing platform that includes web design and email marketing, among other features? Try:

• Owner.com
• Bentobox
• Popmenu

Conclusion

Selecting the right ESP for your restaurant or bakery is an important decision that can significantly impact your marketing efforts. By understanding your goals, tracking the right metrics, and selecting an ESP with the features you need, you’ll be well on your way to creating successful email marketing campaigns. Keep experimenting and analyzing your results to continue refining your approach.

Looking for more?

In the remaining part of our email marketing series, we’ll discuss common email marketing mistakes to avoid and share some creative email campaign ideas. Your digital success story is just an email away!