Saturday, April 26, 2008

Viral expansion loop:

"To him that hath, shall more be given, and he shall have abundance. But from him that hath not, even that which he hath shall be taken away." Matthew 25:29

Remember back in the dark ages when everyone was telling restaurateurs that they had to have a web site. How naive we were back then, so twentieth century. Have you been to a restaurant web site lately…ok wake up! Exciting places aren’t they? It is the twenty first century and high time we made that website interactive.

Adam Penenberg’s article about “Ning’s Infinte Ambition” offers restaurateurs another way to create customer advocacy.

“The secret is what's called a "viral expansion loop," a concept little known outside of Silicon Valley (go ahead, Google it -- you won't find much). It's a type of engineering alchemy that, done right, almost guarantees a self-replicating, borglike growth: One user becomes two, then four, eight, to a million and beyond. It's not unlike taking a penny and doubling it daily for 30 days. By the end of a week, you'd have 64 cents; within two weeks, $81.92; by day 30, about $5.4 million.”

What you may ask does this have to do with creating customer advocacy for my restaurant? Everything. Create a social network for your restaurant. Restaurateurs are always looking for ways to have guests interact by initiating club cards, member’s only parties, giveaways etc. Here is the most perfect tool by far. Social networking gives people who are loyal to your restaurant the ability to interact with each other and spread the word about your restaurant.

Create a social network, foster customer advocacy and get into the viral expansion loop!