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Having Words With ... Scott Shaw, Founder, Fishbowl Inc.

Having Words With ... Scott Shaw, Founder, Fishbowl Inc.

Back in 2000, when technology stocks were crashing and dragging the American economy toward the last recession, Scott Shaw saw an opportunity in new media where others saw only risk. Shaw, who by then had spent 17 years with three separate foodservice startups, founded Fishbowl Inc., a firm that specializes in permission-based e-mail marketing for chain and independent restaurants.

“Fishbowl grew out of the e-mail marketing I had done at my own restaurants,” he says. “It was connecting me with my customers and extending the customer relationship beyond the four walls of the restaurant.”

E-mail marketing clearly worked, Shaw says, but there was no turnkey service for using such services until he spawned Fishbowl. Today, the Alexandria, Va.-based company has expanded its reach to be a one-stop shop for online ordering and reservation management as well.

How important has targeted marketing become, especially during an economic crisis?

The restaurant industry is the last industry of any size that doesn’t know who its customers are. The consequence of that is that you’re extremely limited in the kind of marketing and customer relationship management you can do. When you solve that problem, by building a customer database, it opens doors to doing personalized, relevant messaging.

I think it’s become absolutely critical, because at this point there’s not a growing base of restaurantgoers. You’ve got to stay connected to regular customers and work to keep your share of their dining dollar, or at least find other ways that you can serve them. For example, maybe the consumer who used to dine with you twice a month and spend $100 is now ordering takeout once a week through our online-ordering portal and spending $50. They’re still happy and perceive a value there, and you’re making the same $200 a month from them.

Knowing who your customers are and making it convenient for them to do business with you in other ways are the two themes of 2009. It could be a focus on online ordering, it could be casual dining accepting reservations, or it could be stronger local-store marketing and community programs.

FAST FACTS

HOMETOWN: MiamiBIRTH DATE: Jan. 11, 1960EDUCATION: bachelor’s degree, Yale UniversityPERSONAL: married; two daughters

So are you somewhat optimistic for next year?

The optimism I feel is that this is a new golden age of restaurant marketing. Fifty years ago, we were all independent operators, and we all knew our customers. Today with new marketing technology, it’s possible for even the largest of chains to reconnect with customers and do it at a fraction of the cost of mass media.

How about for independent operators?

Independents can use marketing technology to hold their own and stay connected to customers.

It’s got such a powerful impact that it’s not about chains or independents anymore. It’s about those who are using new tools and those who aren’t. It’s between engaged and nonengaged restaurants.

Restaurants have a huge reservoir of trust and affection, and that will migrate online if used responsibly.

Does staying connected involve messages other than just selling food?

Staying connected is definitely a two-way street. Listening to guests when making menu or location decisions make them part of the brand and part of your success.… We don’t believe it’s all about this one-way delivery of offers and promotions. That strategy misses the larger opportunity, which is to engage customers with a variety of communications. The buy words are interest and relevancy.

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