Effective Use of Prepaid & Digital Discount Gifting in Card Loyalty
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This is an overview of an eight year loyalty program at Pizza Hut in Brazil (S達o 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速 ). 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.
Effective Use of Prepaid & Digital Discount Gifting in Card Loyalty
- 1. Mobile Payment Ecosystem Views The E鍖ective Use of Prepaid Wallet & Digital Discount Gifting in Card Loyalty Programs Neissan Monadjem C.E.O. E-Safetransfer S.A
- 2. 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 S達o Paulo:
- 3. Loyalty Program at Pizza Hut: Safe Loyalty: Loyalty Concept, System Management, Program Customization and Card Supply Pizza Hut (IRB/S達o Paulo): Campaign Strategy, Marketing, Card activation (Loyalty enrollment)
- 4. 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
- 5. 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
- 6. Only one in 12 clients is o鍖ered 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:
- 9. On-line & O鍖-line capture:
- 10. Program / client usage: AlbertoGautRonner CNPJ:056.509.998-70 RuaVillarDAlho26,apto36-A CEP03604-010,S達oPaulo,SP Visita:12/05/2012Eldorado01 Visita:19/05/2012Eldorado02 Visita:29/05/2012Estad達o03 Visita:06/07/2012Alphavile04 TeresaL.Sorbonne CNPJ:072.396.776-55 RuaDaMata225,apto908 CEP04530-001,S達oPaulo,SP Visita:14/09/2011Bandeirantes01 Visita:29/09/2011Bandeirantes02 Visita:09/10/2011Pinheiros03 Visita:02/11/2011Pinheiros04 Visita:11/11/2011Bandeirantes05 Visita:23/11/2011Eldorado06 Visita:02/12/2011Pinheiros07 Visita:03/01/2012Eldorado08 Visita:17/01/2012Estad達探09
- 11. Program / client redeeming:
- 12. Reload / Sales (2010/2012): Sold & Reloaded Sold
- 13. Loyalty / User Data:
- 14. Loyalty / Pizza-Hut 2014: Launch of a New Gold generation card 2012: 100,000 cards
- 15. Revenue Model: Card Activation Transaction Fee: $ 0,44 X 21 (3 reloads) $ 1,70A: 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
- 16. Future Steps:
- 17. Gift Card Internet sales:
- 18. Gift Card + Loyalty: 1st Cycle: Gift Card 2nd Cycle: Loyalty SalesI:InternetorRetail SalesII:infranchise1stReload
- 19. Mobile 1 MOBILE 2 2014A+B: C: 2016 / NFC Android
- 21. 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
- 22. Other Loyalty Programs: 1 Fast food 2 Fast casual 3 Casual dining 4 Fine dining