California Pizza Kitchen’s Mobile Rewards Program Delivers 18% Lift in Incremental Visit Rate

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.

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California Pizza Kitchen’s Mobile Rewards Program Delivers 18% Lift in Incremental Visit Rate

The Challenge

The CPK marketing team wanted to improve the results of its promotions by delivering messages when recipients were likely to be making the where-to-dine decision, hoping to compel them to visit CPK.

The Solution

CPK set up two different periods of geofencing messages over the course of National Pizza Month in October.

The first message was designed to advertise the seasonal pizzas available during the month and to increase awareness of a promotion for $10 off $40 among all CPK Rewards members who were part of the targeted communication group.

The Results

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

Testing and Optimizing the Program for the Future

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

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 question “would these guests have come in anyway?” and gain insight on the team’s work.

In addition, CPK is able to test its core program in target markets to uncover ways to improve. Program hypotheses are tested in representative markets and the resulting rich data informs go/no-go decisions.

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