Before Saltgrass Steak Houses became an18-unit casual dining chain throughout Texas, the four-man ownership group realized future growth would require a strategic plan -- and seasoned marketing expertise.

Despite having three locations in Houston at the time, Saltgrass' management was divided as to who constituted its customer base. With the assistance of The Watson Group, a series of research projects were initiated -- focus groups of existing customers, specific comment card questions, face-to-face surveys, demographic surveys and development of a data base for psychographic profiling. These cumulative efforts helped identify two previously unknown groups -- adult family members seeking a "night out" and young professionals "going on dates".

This information provided a critical foundation for Saltgrass' first direct marketing efforts and eventual creation of a site selection module for expansion outside of its Houston base of operations to the Dallas market.

Under The Watson Group's direction, a series of targeted programs -- first-time customer and problem direct mail; Gold Star school achiever award; two-for-one special postcards, and in-house food specials generated six percent of total revenues during 1995.

Not only did these programs produce a minimum of $100,000 monthly, more importantly they introduced the Saltgrass concept to a group of guests who would become long-term customers -- without expensive advertising. Sophisticated tracking determined that the average revenue on these special offers -- after deducing coupon, food and promotion costs -- was $37 per response.

In the fall of 1996, The Watson Group introduced its most dynamic direct marketing strategy by having the United Way distribute a Saltgrass special offer to every company employee in the city of Houston receiving a pledge card. This exposure to millions of qualified individuals was achieved without costly postage -- and in exchange for a donation per response.

Many of the marketing programs established by The Watson Group are still being utilized by Saltgrass today -- making their revenue impact in the multi-millions of dollars. When Saltgrass launched its Babin's Seafood Houses in the summer of 2000, The Watson Group was called upon again -- and delivered with a four-to-one return on investment through direct sales calls to companies and hotels and innovative chamber broadcast fax and co-op distribution programs.