In changing business world, blindly following 'sacred cow' concepts prevents progress

Nation's Restaurant News,  Oct 29, 2007  by Beau Fraser

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We all love our formulas, our rules, our processes. They're comforting and, above all, they're unassailable. But the problem is that they're dangerous. Business today changes too quickly for marketers to make decisions based on conventions like formulas, rules or processes.

I think of these conventions as sacred cows. And believe me, they all need to die.

Sacred cows are the cues, criteria, standards, processes, rules or actions that companies blindly follow because that's the way things always have been done, so why stop now?

Those pithy edicts are repeated and sanctified, followed blindly and passed down from generation to generation.

At some point the sacred cows of the business world made a lot of sense and even had value. But as time passes they become the one unchangeable business constant remaking everything else in their image. We end up adapting our business to suit a philosophy instead of adapting our philosophy to suit our business.

Nowhere is this truer than in the restaurant business. There are herds of sacred cows that deserve to be put out to pasture before they do more harm. What sacred cows am I talking about? Here are four of the fattest for your consideration.

A broader target audience attracts a larger user base.

I lament the redefinition of the word "target" to mean"total potential source of business." I don't know when it happened. But when it did, marketing lost its focus.

Marketers need to have the discipline to identify and concentrate on "perfect customers." Those are the potential buyers who have the most value for you and who are looking for precisely what you have to offer. You are perfect for one another. You do not have to "sell" to perfect customers. They are naturally attracted to who you are, what you offer and how you offer it.

With the perfect customer defined, you can work to create a cult following. The goal is get as many perfect customers as possible to buy from you as often as possible. No one else matters.

While Burger King's advertising deserves its recent kudos, the smartest and toughest decision BK made was selecting young men as their perfect customer and then, with myopic clarity, speaking only to them--even if their tone offended the sensitivity of others.

Restaurants need to create an experience.

This is the juiciest of all sacred cows. Clearly, a perfect customer's visit needs to be an enjoyable one. But too much effort is placed on talking about the experience. Instead, you should create a brand idea. And, sorry, but a mascot, a spokes-thing or a new menu item do not add up to a differentiating brand.

This article does not necessarily reflect the opinions of the editors and management at Nation's Restaurant News.

Beau Fraser is managing director of the international marketing communications firm, The Gate Worldwide, and is co-author of "Death to All Sacred Cows," which will be published in early 2008 by Disney's Hyperion Books.

A brand gives perfect customers a reason to choose you. While I don't remember what the

experience is like at Little Caesars, I know exactly what I am going to get: two pies for the price of one. And for many that is a reason to choose Little Caesars.

The predictable result of this lumbering bovine is that there are few brands in the restaurant category. Sure, name and menu awareness are high. But brand awareness--who you are and why people should care--is low and muddled.

If Clara Peller were alive today, she would yell: "Where's the beef?" And we would agree with her. There is little differentiating substance in the category.

Promotions build up more business.

It used to be that 80 percent of industry spending was behind the brand and 20 percent behind promotions. With the success of promotions, the industry created a new sacred cow: Promotions build and differentiate the business. Today, the industry allocates 80 percent of their marketing budget to promotions leaving a meager 20 percent for defining the brand.

That begs the question: Do promotions work because they sell the promotional item? Or do they work today because they build name awareness? I bet it's the latter. I really doubt many people choose Sonic drive-in restaurants because of their current Mango Iced Tea promotion. Customers may choose Mango Iced Tea once they pull up to the drive-in, but that's not the teason they chose to go in the first place.

So even if the promotional item sales are high, did this promotion work? If it didn't generate incremental business or loyalty among perfect customers, the answer is no.

Don't get me wrong, promotions are important. But the only promotions that make sense are those that support and further the brand idea. If it doesn't, don't run it.

Because while the promotion may entice trial, it is the brand idea that builds loyalty and generates repeat visits, getting perfect customers to return once the event is over.

Effectively showing the product will make people want the food.