The Business

As one of the largest global pizza chains in the world, Pizza Hut has spent the last few years developing their cross-channel digital media strategy to drive sales across 380 franchisee owned Pizza Hut delivery huts. Pizza Hut’s strategy in the competitive UK market is all about being relevant, easy, and distinctive in everything they do, from developing campaigns to delivering pizza to outer space! 🚀

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“Our strategy at Pizza Hut is all about being relevant, easy and distinctive. We’re driven not only by delivering a functionally frictionless experience but also by building meaningful relationships with our customers. Delivering customers the right message at the right time via the right channel is paramount to that goal. Using data and personalization, Emarsys enables us to keep our customers at the heart of everything we do, powering vital lifecycle and loyalty campaigns that drive conversions, retention, and relevancy. We look forward to continuing to scale these programs through the Emarsys platform to deliver better experiences to our customers.”

Catriona Woodward
Catriona Woodward
Head of Digital Marketing, Pizza Hut
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The Challenge

The UK pizza delivery market is competitive, and one bad experience can send a customer to a competitor. In an environment where customers are easily swayed towards the cheapest deal, loyalty is hard to nurture. 

To stay within the hearts and minds of customers, Pizza Hut had to maintain exceptional customer experience, while keeping up with emerging trends and changing demands.

Pizza Hut needed a 360-degree understanding of their customers to better communicate throughout the customer lifecycle. In the past, Pizza Hut sent generic batch-and-blast emails with undifferentiated discounts, making it difficult to determine whether they were using the best pricing strategies. 

As is common, Pizza Hut’s data was siloed. Understanding what data to focus on, and bringing it together in a tangible way, was overwhelming and labour intensive. Even after combining all these data points, it was unclear how to identify the right insights and track if new marketing efforts are contributing positively to ROI. 

Pizza Hut needed support to align the right technology, with the right strategy that they could scale and optimize over time.

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The Solution

With support from Emarsys, Pizza Hut improved their data capture to set the foundation for creating personalized campaigns. By using self-reported data paired with real-time customer engagement behaviour data and Emarsys’ predictive AI, Pizza Hut gained clear insights and actions to grow revenue. With this data strategy and Emarsys’ automations, Pizza Hut was able to send relevant 1:1 communications to customers through personalized post-purchase and lifecycle campaigns which improved loyalty, revenue and margins. 

  • In just 30 days, Pizza Hut’s marketing team was provided the ability to fully leverage their data to create critical lifecycle campaigns such as Welcome, Abandoned Cart, Abandoned Browse, and Lapsing Win-Back to achieve a quick time to value and boost their CLTV and loyalty.
  • In their Welcome campaign, Pizza Hut gained first-party customer data by incentivizing customers to share their dining preferences, dietary restrictions and party size. This information gave Pizza Hut the opportunity to segment customers and nurture them through various customer journeys, tailoring discounts and content to ensure relevancy. 
  • One key differentiated journey was based on the Average Order Value for each customer type. For example, customers ordering pizza for their family were more likely to spend £30 or more and thus would most benefit from a personalized discount bracket targeting a higher spending amount. 
  • When customers were idle in the later stages of the funnel, Pizza Hut used Emarsys’ behavioural signals to send customers automated emails that encouraged them to purchase. These super-fast reminders were sent within 3 minutes from the basket or browser being abandoned. 
  • Pizza Hut increased repeat purchases through their custom loyalty program by nudging loyalty contacts to unlock their next personalized reward, and informing them of the number of slices of pizza they received from their free pizza.
  • They increased the signups to their loyalty program by connecting their behavioral segments and custom scoring to Emarsys to create differentiated journeys based on lifecycle stages and loyalty status, and executed an A/B tested, interactive campaign that gave customers the option to choose a free pizza instead of just getting a free side.
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The Results

As a result of partnering with Emarsys, Pizza Hut was able to capture data that was crucial in identifying the right incentives for its customers. Their results are a testament to their strong understanding of differentiated discounting and a commitment to learning more about customers: 

  • 2x higher conversion rate month-over-month from differentiated Welcome journeys, fuelled by enriched self-reported data.
  • 3x increase in conversion rates in 30 days after implementing real-time signals for basket or browser abandons, as opposed to general reminders sent on the same day.
  • 15% onboarding conversion for those who received mobile communications, along with email, within 24 hours of signing up.
  • 33.8% engagement increase from their custom loyalty program, as well as a 0.4% re-conversion rate within 24 hours from the initial purchase.
  • 195% increase in loyalty program signups from A/B experiments within interactive campaigns.