Many companies capture large quantities of customer data. But few use the data to deliver a competitively differentiating customer experience.
Pizza Hut is now offering preference-driven communications and more personalized pizzas as it shifted towards more personalized customer interactions whereby the consumers register themselves and share their preferences with the pizza brand.
The company is then using that information to differentiate suctomer experience.
“We now run targeted campaigns built with intelligence around customers’ preferred product categories, typical purchase times and channels of choice,” Juliana Lim, Senior Marketing Director for Pizza Hut said.
Pizza Hut recently shifted to a more personalized customer interaction by segmenting its customer-base in 6,000+ groups based on characteristics, purchase tendencies, and behavioral indicators.
A brief overview
Pizza Hut seeks to provide customers with a registration process to define their personal communication and pizza preferences and delivery instructions. Customers can order online, via traditional call-in, via a mobile site, and even via an ordering app on an Xbox 360 system. Online registration allowed customers to get exclusive deals and even set pre-orders for up to 7 days ahead.
The Result
• A 200 percent jump in average campaign hit rates across customer segments
• A 38 percent improvement in Pizza Hut’s customer retention rate
• A 9 percent increase in customer visit/purchase frequency in just seven months
• Up to 6 percent extra sales generated every month since the program started
The study proves significant hypothesis. For starters – customers are willing to provide personal information to a brand they trust, to get more personalized offerings. Online interactions provide the customers with the flexibility to change and alter their preferences.
What do we learn from this?
1. Customers Perceive Personalization as a Service
2. Customers want to be involved, from the creation to the final delivery, of the offering.
3. Companies can generate engagement, get valuable customer preference information to tone and develop their offering, simply through a promise of personalization of product.
