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MARKETING | Staff Reporter, UK
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How KFC achieved 12%+ same-store revenue growth

KFC AmRest found success with four automated marketing campaigns.

Operating more than 1,000 restaurants in 13 countries, AmRest Holdings SE, recently released a mobile solution consisting of a white-label app, “KFC Club” and a CRM system. The solution works around customer loyalty, and includes a bonus loyalty program with mouth watering visuals that compel customers to return again and again to the stores. Together, the bonus loyalty program, a highly effective UX and the use of mouthwatering visuals have resulted in 30% app penetration. This high engagement and associated customer data allow in-app automated marketing campaigns to directly and positively impact revenue. This is achieved in four ways:

Bounce Back Coupons:

After KFC started their mobile app-based loyalty program, they found out that 70% of all restaurant customers experience a delay in returns after their first visit, a common situation for restaurants. To address the challenge, KFC launched a bounce back coupon campaign. All customers who have used the app for the first time receive an in-app coupon that they can use 7 days after their first visit. This works because customers still have KFC fresh in their minds, making it a “hot” opportunity: >27% of guests who receive the coupon, come back for a second time in seven days to claim the offer and bring +1.5% of incremental restaurant’s revenue per month.

Proximity Marketing Campaigns: 

Imagine that one of your guests is shopping at the mall and is hungry. Wouldn’t it be just great to be able to incent her with the right reason to choose your restaurant over others? This is how AmRest can leverage its KFC proximity marketing campaigns. The KFC app analyzes users in close proximity to the restaurant’s location, or geozone. The identified potential guest or guests receive a push notification with a special offer that is available only for just that day. Over 22% of those customers visit KFC after receiving the offer and 0.34% of KFC monthly revenue comes from proximity marketing campaign.

Automated Birthday Greetings: 

Congratulating a customer on her birthday is a great gesture and one that can be effectively delegated to a mobile marketing solution. When signing up for the KFC app, guests enter their birth date. The platform automatically sends a message to guests with an invitation to come to the restaurant within two weeks of their birthday to receive a special gift. For example: “Happy Birthday! Come to KFC with friends and get Chicken wings on the house.” The campaign conversion is more than 38% and the average check size included in the birthday offer is twice as big. The share of monthly incremental revenue increase coming from the birthday campaign is between two to five percent.

Winning Back Lost Customers:

AmRest marketers also leveraged a great campaign opportunity by using a feature that automatically defines customers who haven’t been to restaurant in the past two months and sends a special offer to them. One campaign example from KFC’s mobile app includes receiving a Free Colonel Sanders sandwich for lapsed customers. The result has been impressive -- 34% of guests clicked on the offer to learn about the details; 14% of guests came back during 2 weeks and on average, 2.7% of incremental revenue comes from this kind of campaign.
 

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