For years, Papa Murphy’s Pizza collected customer phone numbers from call-in pizza orders but had no cross-referenceable information to match the numbers to actual customer orders or contact information. This scenario also made point-of-sale data of little value to Papa Murphy’s for marketing purposes. Because the customers associated with these orders were unknown, there was no opportunity to reach and engage them directly and drive them back to the store — a common problem for almost all restaurant chains.
To find a solution, the pizza chain with more than 1,580 locations engaged Bridg for precision 1:1 marketing, driven by data insights and analytics. The first software company to leverage big data to drive precision marketing campaigns for restaurant brands was tasked with:
- Identifying and segmenting the individual customers and transaction histories from Papa Murphy’s point-of-sale data enabling insight-driven personalized marketing (encrypted customer name/id) and
- Driving sales growth
“We had existing customer data, but partnered with Bridg to extract, analyze, and leverage the information to make it actionable,” said Tim Vu, VP Digital Experience for Papa Murphy’s. “Connecting data across our customer database, point-of-sale systems, and custom eCommerce platform will help us deliver compelling offers and provide even greater value to families looking for a fresh dinner option.”
The Campaign Steps
Leveraging Papa Murphy’s point-of-sale data to derive lifecycle insight for each individual customer, Bridg used its proprietary technology to identify the customer and assign historical purchase behavior to each. This allowed Papa Murphy’s to segment and then market to customers using targeted messages.
Once the customer profiles and behaviors were aligned, Bridg identified segments of customers who had lapsed from their previous individual buying patterns. Understanding that this group would have the most imminent and incremental revenue impact, Bridg created a campaign audience of lapsed customers to receive a specific marketing message.
Armed with a database of actual customers, Bridg located these customers online, primarily on social channels such as Facebook and Instagram, and served targeted display advertisements to the individuals. The ads contained a coupon for $4.25 off a pizza and provided one-week window for redemption in-store or online.
Social ad channels were chosen as the initial digital channel due to their broad base and ease of targeting. The ads were presented in the central news feeds of the lapsed customers that were targeted. The flow of the ads captured email address and opt-in with two simple clicks and without leaving the Facebook environment. The flow auto-completes the form for the user with the Facebook profile and results in automatic delivery of a personal email with coupon immediately after the form is completed.
Once the user returns to Papa Murphy’s, with or without the coupon, Bridg’s technology detects the transaction, traces it back to the unique customer that was targeted with a digital ad, and reports a closed-loop, clear ROI. Pinpointing precise individuals that were formerly regular customers exceeded the results of campaigns that target unknown audiences.
Return On Investment (ROI): The campaign produced $3.58 in revenue for each $1 in advertising/technology spend from lapsed customers, comprised of immediate revenue within seven days, incremental revenues in the year, and yearly value of the opted-in emails.
Driving Immediate Revenue: Revenue derived within seven days exceeded the total media spend, driving $1.34 for every dollar spend in media.
Click-Thru Completion and Capture: 50 percent of customers that clicked on the ad joined Papa Murphy’s email database. These customers supplied a usable email address and opted-in to receive email marketing messages in addition to receiving a coupon. Scalability of this method is immense for those who want to make a quick impact to their business and are against time constraints.
Cost Efficient Customer Identification, Capture and Retention: The campaign produced these contacts at a cost of less than one third of their annual value (based on Papa Murphy’s known economic values assigned to each customer contact with an opted-in email address).