The Loyaltees Awards highlight leading and innovative brands in the restaurant and retail industries. When it comes to incredible guest engagement strategies, this year's winners set a new standard of excellence.

 
 

California Pizza Kitchen’s Mobile Rewards Program Delivers

In April 2013, the CPK Pizza Dough® Rewards program was delivered to the hands of millions of guests via its branded Android and iOS apps. With the points-based rewards, members earn $5 of Pizza Dough® for every $100 spent with each POS or online ordering transaction. Today, more than 80% of Pizza Dough members interact with the brand’s rewards program via the apps. Members identify themselves at the restaurant, check reward balances, and receive highly relevant, visit-inspiring messages on their devices.

CPK takes advantage of the Paytronix Data Insights premium analytics service to dive deeper into customer and campaign data and to help make decisions about where to take the Pizza Dough program next. CPK has not only enjoyed the benefits of sending relevant guest communications, it has also bolstered the impact of the marketing investment by:

 

THE ORGANIZATION
In 1985, California Pizza Kitchen (CPK) opened its first restaurant in Beverly Hills and introduced diners to innovative California-style pizza. Since then, CPK has launched what has become a global brand known for creative California cuisine. Today, CPK is approaching 300 restaurants in 15 countries and 218 cities around the world. Dedicated to a unique dining experience, CPK is introducing its Next Chapter featuring reimagined menus, open kitchens, and unique renovations in all restaurants across the country.

THE CHALLENGE
In 2013, the CPK marketing department recognized how important it was to utilize highly targeted and relevant direct guest messages to fulfill its brand promise, which is to deliver a unique dining experience. At the time, the team was limited to the data typically available with an email club – name, email address, birthday and favorite store. The limitations prompted the team to seek a more robust guest engagement solution that would enable the team to quickly learn about guest behavior, test, and target effectively. 

The Solution In April 2013, the CPK Pizza Dough® Rewards program was delivered to the hands of millions of guests via its branded Android and iOS apps. With the points-based rewards, members earn $5 of Pizza Dough® for every $100 spent with each POS or online ordering transaction. Today, more than 80% of Pizza Dough members interact with the brand’s rewards program via the apps. Members identify themselves at the restaurant, check reward balances, and receive highly relevant, visit-inspiring messages on their devices.

CPK takes advantage of the Paytronix Data Insights premium analytics service to dive deeper into customer and campaign data and to help make decisions about where to take the Pizza Dough program next. CPK has not only enjoyed the benefits of sending relevant guest communications, it has also bolstered the impact of the marketing investment by:

Lifting Promotional Results

In 2015, CPK added a real-time element to its program by adding geofencing to its message channel mix.  The goal was to lift the results of its promotions by delivering messages to recipients in context – while they were likely making the “where-to-dine” decision – to compel them to visit CPK.

CPK did two different periods of geofencing messages over the course of National Pizza Month, October 2015.  The first message was designed to announce the promotion – and to build awareness for all Pizza Dough® Rewards members who were part of the targeted communication group about the $10 off $40 promotion, and to share the seasonal pizzas available during the month (Roasted Garlic Pizza and Shrimp Scampi Pizza). 

FIRST MESSAGE: On Oct. 2 the initial Geo-fenced message was sent to Pizza Dough® Rewards members who had not already redeemed their $10 off $40 reward and were within one mile of any CPK. 

SECOND MESSAGE: Alerted those who hadn’t redeemed the offer before it expired and were within two miles of a restaurant. In order to prove the efficacy of this communication method, CPK worked with the Paytronix Data Insights team to segment its population to have both a targeted (communicated to) population and a control population. 

The visit rate of the targeted group exceeded the control group by about 18%.  This also equated to a spending lift of 10%.

Testing and Optimizing the Program

CPK continuously tests its program elements – from promotional offers to the reward program itself – before rolling new ideas out system wide. The flexibility of the system enables the savvy marketing team to test for best performance to find the next high-impact, strategic idea.

For example, with each new campaign, CPK holds out a control group that matches the exact characteristics of the target group. This test-and-control methodology enables the brand to readily answer the common question, “would these guests have come in anyway?” to arrive at true insight into the efficacy of the team’s work.

In addition, CPK is able to test its core program in target markets to uncover methods for continuously improving the results of the overall rewards program. It has tested program hypotheses in representative markets and uses the rich data to inform go, no-go decisions.

The Paytronix premium analytics team acts as a direct extension to the CPK marketing team. It dives deep into customer and campaign data to help the team make decisions about where to take the Pizza Dough program next to maximize its impact.

The Results Since the launch of the Pizza Dough Rewards program, CPK has adjusted its strategy to deliver relevant, targeted messages coupled with new messaging channels such as geofencing. For CPK both open rates and responses are up, which translates into revenue. CPK relies on its Pizza Dough app as one of our primary advertising vehicles for reaching guests. As a result, the pizza chain has been able to push its digital ad spend out to its local markets.