Restaurant Loyalty Program Case Study
Pizza Hut
Membership Data Analytics
Member Profile & Identity Management
Website
Challenges of This
Restaurant Loyalty
Program Example
Pizza Hut Hong Kong faced a significant decline in sales after the social movement protests began in June 2019. These protests disrupted malls and restaurants, leading to reduced customer spending. As a result, Pizza Hut, which heavily relied on delivery sales in a highly competitive market, experienced both a drop in revenue and customer loyalty. In addition to the revenue loss, the company struggled with fragmented data that was difficult to analyze, further complicating efforts to retain customers.
In Click Through Rate in 6 months
In open rate in 6 months
In sales conversion in 6 months
Taking You to the
Next Level of Success
The Restaurant Loyalty
Program Solution
RFM Segmentation
with Data Mining
To address these challenges, we built a data warehouse for Pizza Hut Hong Kong by collecting data from various sources. We analyzed transaction data from 2016 to 2018, allowing us to segment customers based on their purchasing behavior. This segmentation enabled us to create personalized communication across multiple channels. We tailored marketing messages to align with each customer’s preferences, including their favorite meal choices, typical order times, and party sizes. This personalized approach helped strengthen customer loyalty and increase the lifetime value of Pizza Hut Hong Kong’s customer base. Post-campaign analysis, including the use of control groups, confirmed the success of our strategy.
01
Enhancing Conversion Rates Through Predictive Customer Preferences & Rewards
To improve conversion rates, we analyzed Pizza Hut Hong Kong’s transaction records over three years. By applying these insights, we developed effective customer relationship management (CRM) strategies. For example, we introduced discount pricing options that appealed to customers and featured popular dine-in and delivery dishes in our marketing campaigns. This targeted approach streamlined communication and effectively boosted the conversion rate.
02
Automating Personalized Engagement for Higher Conversion Rates
We implemented automated, personalized content delivery across the most effective channels based on customer preferences. By leveraging real-time insights, we identified a critical retention period of 60 days for Pizza Hut Hong Kong’s customers. Engaging customers before this window closed led to a significant increase in repeat purchases. Our data-driven approach ensured timely engagement, minimizing customer churn and improving retention in a clear and professional manner.
03
60-Day Retargeting Campaigns to Minimize Churn
Our strategy focused on reaching out to customers within the key 60-day period before they became inactive. By promoting new dine-in and delivery options, we re-engaged customers with targeted offers and sent a final reminder to encourage them to return. This proactive approach successfully minimized churn and maximized retention rates, ensuring that customers stayed engaged with the brand.
04
Personalized Messages for First-Time Visits to Engage New Members
We discovered that over 30% of new members never made a purchase after signing up. To address this, we designed Electronic Direct Mail (EDM) campaigns specifically for this group. Our team used email, SMS, and in-app notifications to send personalized messages featuring their favorite items, encouraging their first visit to Pizza Hut Hong Kong. This tailored approach aimed to boost their initial engagement and enhance their overall experience.
05
Tailored Reward Redemption Reminders and Personalized Content
To further engage members, we reminded them of their favorite redemption items through personalized content. By analyzing customers’ food preferences, we created customized content and visuals for each reward group. In the second month, we increased the intensity of our messaging with more compelling visuals and a stronger tone to encourage members to revisit and strengthen their loyalty to Pizza Hut Hong Kong.
06
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