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This is an overview of an eight year loyalty program at Pizza Hut in Brazil (São Paulo). The presentation describes the success of using in a same smart card, the advantage of a digital gifting reward system, together with a simple prepaid program ( HutCash® ). Both resources can be used for the same group of card enrolled clients. Over 100,000 clients have enrolled and over 95 % have been able to enjoy at least one of the benefits. This is an astounding success story for any card based loyalty program in the World. The first public presentation of this slide show was in Las Vegas, on May 14th at the CARTES America Conference, at the Mobile Payment Ecosystem Views program.
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Mobile Payment Ecosystem Views The Effective Use of Prepaid Wallet & Digital Discount Gifting in Card Loyalty Programs
Neissan Monadjem C.E.O. E-Safetransfer S.A
Population: 19 million 5,800 Pizzarias 2nd largest market worldwide, after New York Largest single outlet sales of 11,200 Pizza Hut restaurants
Loyalty Program in São Paulo:
Loyalty Program at Pizza Hut: Safe Loyalty: Loyalty Concept, System Management, Program Customization and Card Supply Pizza Hut (IRB/São Paulo): Campaign Strategy, Marketing, Card activation (Loyalty enrollment)
Program History at Pizza Hut: Concept: 2003 Phase I: 2006 Phase II: 2007 Phase III: 2014
Subject of this presentation: loyalty through digital gift and discount units
Loyalty Program at Pizza Hut: Phase I: prepaid+bonus: 2006 - 2007 Phase II: 1 free pizza +12 (1/week) 40% discount units Phase III: 1 free pizza +90 x 50% discount units
Only one in 12 clients is offered a card Enrollment cost: $ 22, so client must decide: Am I planning to return? Do I like it here? Is it worth it? 1/6 of invited become a loyalty “Clube” member
Loyalty in Casual Dining:
Loyalty Campaign Strategy:
System Management:
On-line & Off-line capture:
Program / client usage:
A
lber
to G
aut R
onne
r C
NP
J: 0
56.5
09.9
98-7
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ua V
illar
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ldor
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ta: 2
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resa
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ata
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4/09
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ande
irant
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sita
: 29/
09/2
011
Ban
deira
ntes
02
Visi
ta: 0
9/10
/201
1 P
inhe
iros
03
Visi
ta: 0
2/11
/201
1 P
inhe
iros
04
Visi
ta: 1
1/11
/201
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ande
irant
es 0
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sita
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Eld
orad
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Pin
heiro
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Vi
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: 03/
01/2
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Eld
orad
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sita
: 17/
01/2
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Est
adãõ
09
Program / client redeeming:
Reload / Sales (2010/2012):
Sold & Reloaded
Sold
Loyalty / User Data:
Loyalty / Pizza-Hut 2014: Launch of a New “Gold” generation card
2012: 100,000 cards
Revenue Model:
Card Activation
Transaction Fee: $ 0,44 X 21 (3 reloads)
$ 1,70 A: B: Client, first time card load: $22,00
+D: $ 22,00 +C: $ 22,00
1,2,3,4,5,6, 7 1,2,3,4,5,6,7
1,2,3,4,5,6,7 returns per load
Future Steps:
Gift Card Internet sales:
Gift Card + Loyalty:
1st Cycle:
Gift Card
2nd Cycle: Loyalty
Sal
es I:
Inte
rnet
or R
etai
l
Sal
es II
: in
franc
hise
1
st R
eloa
d
Mobile 1 MOBILE 2
2014 A+B: C: 2016 / NFC Android
Franchise Point Equalization:
Loyalty Program Results: +100,000 clients enrolled exclusively at points of sale Most successful card based digital discount gifting in Brazil Average expense per visit in loyalty enrolled clients is 23% higher then regular customers Clube card holders generate 10% of revenue with only 3.5% of the transactions
Other Loyalty Programs:
1 Fast food 2 Fast casual 3 Casual dining 4 Fine dining