3X
veces conversión por medio de recordatorios de carritos abandonados en tiempo real
+195%
más suscripciones al programa de lealtad de Pizza Hut a partir de una única prueba A/B
+34%
más integración a partir de la campaña de lealtad poscompra
15%
más conversión a partir de SMS gracias a un enfoque omnicanal para la incorporación de clientes
Good morning, good afternoon, and good evening, and thank you for joining us at retail revival. My name is Kyle Hindocha and Adi Masos and SAP. I have the privilege of working with our clients and our partners to bring our solutions to market. Addie masters, we're proud to partner with brands across almost every different category within the retail industry. And joining us now is Kat Woodwood, the head of digital marketing at Pizza Hut. And we'll be discussing Pizza Hut's approach to digital transformation and how they've executed this strategy to ensure relevancy the customers in an extremely competitive fast food industry. Thank you for joining us today, Kat. Thank you for having me. Would you mind giving our audience an introduction to yourself and your team and what what your role is at Pizza Hut? Sure. So as you said, on the head of digital marketing, pizza hut, I've been, working in digital marketing for about fifteen years now, in very different industries from kind of travel and beauty now to, QSR. My team manage all of the digital market activity for Pizza Hut delivery in the UK as well as working with our European franchisees on best practice and that's everything from CRM to loyalty programs to performance marketing channels. And you've told me previously about your digital journey Pizza Hut, and the journey that you've embarked on over the past five years, can you give us a little bit more about where you were five years ago and where you are now? I think the last five years have really been about accelerating our, digital, I guess, our digital ecosystem and also our experience and our capability and our technology. So we've done a big piece on improving our website, in e commerce, to make sure that we're easy for the customer to use and and get that pizza when they want it, but also we've been on a huge journey with my team on, digital marketing and performance marketing. So how do we really, optimize that and, make it as efficient and as an active as possible. And then also with yourselves at Amarcis, over the last few years, we have also really been looking at CRM and how do we, really use our data in the best way possible to make sure we're giving super relevant communications, to our customers. And in the background, there's tons happening, not just from a digital marketing perspective, but obviously just from a technology perspective in terms of how do we really improve the the customer experience end to end using technology or even just improving processes but they tend to go hand in hand in order to make sure we're giving the customers the best experience we can. And many brands struggle to determine what to prioritize when such a big change in their business is about to happen? What would you recommend as the best approach to determining the order prior order of priority? And from Pizza Hut's digital journey, what would you recommend be the first, second, and third steps to deciding what to prioritize, and how actually did you go about executing this change? And you need to be really clear on your business goals, both the long term goals and the short term goals. And have a really clear point of view on where you want to be from a digital experience and media perspective in the long term. You can then work back from that kind of long term vision to determine your priorities. So your business goals, be it sales, profit, customer metrics, they're gonna be the things that build your business case. Right? So you're gonna need to know like, what what is gonna deliver the benefit in terms of your business priorities, and then you need to make a conscious decision to ensure kind of balancing those long term gains with those longer term strategic projects. But the longer term strategic pro projects should also have a clear business case which can justify the workbox. It's gonna come in on over a longer period of time. But if you're constantly looking at those short term gains, and not focusing on how you're getting to that longer term vision, you're never gonna move the business on, and you'll end up falling behind compared to your competitors because you're gonna have necessarily those new innovations or the underlying technology that that enables you to kind of move forward in an agile way in order to keep a kind of in line or ahead of or ahead of the competition. I think when when looking at longer term digital experience and the capability you need, There's offering a set of dependencies, and that will help determine your priorities as well because things will need to come in a certain order. And I do think you have to be cognizant of the fact that sometimes those kind of longer term, business There's longer term or even short term priorities that are gonna really deliver against kind of big business cases, sometimes come at the sense of innovation because those innovation or emerging technologies sometimes much harder to build business cases around. So you really need to understand as a business, like where do you stand on innovation? Do you wanna be leading in your category or not leading in your category? Because if you wanna lead in your category, you have to accept that you're gonna have to put some resource behind some of those innovations even though the business case might be clear. And then you really need to make sure you're carving out kind of is that a ten ten percent, twenty percent resource that's gonna work on stuff that's a bit more in that kind of unknown space, but you know it's gonna drive the business forward in terms of customer experience or customer perception, to keep you ahead of head of the competition. And to say ahead of the competition, you've you mentioned Pizza Hut's red strategy to move forward. So being relevant, easy and distinctive, Can you tell us a little bit more about what this actually means and how it informs Pizza Hut to wider marketing strategy? And how does, like, an omnichannel marketing even fit into this red strategy, which, by the way, I love the name. Yeah. And it goes with the brand. So it's awesome. So, So as you said, red means relevant, easy distinctive. So, some of those have obvious meanings, but there's also some less obvious meanings to them as well. So I'll maybe them one by one. So when we talk about relevance, a brand or product, obviously needs to be relevant to, like, the customer's functional needs. So what are they looking for in a pizza? They want food. Right? But we're also social creatures. So we normally look for some sort of deeper emotional benefit out of the experience. As an example, when you watch a movie, you may be superficially looking for an exciting couple of hours of entertainment. But when you actually dig down into why people really watch movies, you discover that in some countries, it's actually about the fantasy of living someone else's life. And that fantasy is then the category code. So you want to be relevant to the functional's needs state, and that's an exciting couple of hours with a friend. But relevant to the category code is that sense of fantasy. So it's like the deeper, more emotional reason why you're engaging with the category at all. So then if you can understand that and deliver on it in an ownable way, then you're more emotionally relevant. And then the kind of third piece of relevance is really around kind of being relevant to pop culture, which sounds silly sometimes and sounds a bit kind of vacuous but it's actually really important. So if people talk about your brand on social media or it's a topic of conversation at parties and between friends, then by inference, it's an acceptable brand, and actually it'll be top of mind for people. Therefore, get used a lot more than other brands. So we know from our brand tracking, if your brand buzz increases, then consideration increases and usage should increase across the back of that as well. So as humans, we kind of really care about what other people are talking about. Even if we don't wanna admit it to ourselves, So more recently, we've been, as well as kind of, obviously, we want our products to be relevant. We want customers to like them. They need to go along with the the latest food trends, etcetera. We've also been looking at how we can build cultural relevance. So how do we build buzz around the brand to those key kind of audience groups so that we are top of mind and driving consideration with them. Easy is again, the obvious part of Easy is around being easy to use or easy to get, so making sure your website is kind of super super easy to get through. People can buy what they need to buy. They can find those products. But it's also being easy to see and hear. So you need to be easy. It's all very well having a website that's easy to use, but if people can't find that website, then that's no good to anyone. So it's it's also a media problem to a certain extent. So how do you really get that reach? How do you make sure you are aware where the customers are when they're looking for your brand or your category, but also how do you make sure your brand is out there? So when people think pizza, they think pea pizza And so there is also a piece around driving awareness through reach. And then distinctiveness is the final piece. So we all know that customers are exposed to huge amounts of advertising, and much of it is forgotten. Right? So distinctiveness is really about driving sales by making sure your brand is unique and ownable and consistent. And so then that helps customers recognize you, but also remain remember your brand. And again, it comes back to kind of top of top of, top of mind awareness piece again. And you mentioned a really important point there about, the budget are needed for marketing and advertising. And fast food is an incredibly competitive industry that tends to be dominated by brands with significant budgets for marketing and advertising. And it's it is possible to to gain a competitive advantage without having a countless amount of millions and millions to spend. And how does pizza had actually how do you solve for this problem? You are typically a smaller brand compared to others. So how do you solve for this problem and how do you use your budgets in the most efficient and effective way? So, again, it it it comes it comes back to that red strategy. Right? We need to be relevant to our core audience group. And then we need to make sure those audience groups can find us. So regardless of, it may be that if you have you know, tens of tens of millions of pounds worth of media budget, right, your reach can be wider, and you can go after more audience groups. If you're smaller, you just have to be a little bit more focused in what you do, and you also have to be a little bit clever in what you do, and you have to make sure that that budget is really optimized and being spent in the best possible way. So we have, you know, our pillars are all around kind of being where the customer wants to be in those intent driven trap channels, making sure we're driving awareness and also making sure we're building strong relationships with our customers through the, like, through CRM, etcetera. But all of that is underpinned by kind of a data driven attribution approach. That means we're measuring to make sure we are getting the most efficient spend, across all of those different pillars and all of the activity that we do because that you just wanna make sure there's absolutely no wastage in in that media spend at all. Hundred percent being efficient and effective is, the way forward these days. And staying relevant for a customer now across different channels they engage in is also something that's becoming more and more, relevant and also ensuring the parts of success, especially in the fast food industry, how does Pizza Hut stay relevant to its customers in this fiercely competitive world of food and which channels do you usually use to communicate with them to really be there, when they when they need it the most. I think it's I mean, it isn't really any different to any other industry. Right? You need to make sure your product is relevant first. So we need to be, you know, we're super curious about what food trends are out there, what are our customers looking for? We speak to our customers. We speak to our suppliers. We look at what happening in the market, and you need to make sure you have a compelling product. But then when you're taking the product to market, you know, we need to be in the channels where customers are looking for us primarily. So those intent based channels such as PPC. So be super optimized there. But also, you know, if we're driving awareness or driving consideration, look at your customer segment look at what channels are most effective for those segments and make sure that you're talking to those segments in the most relevant way. Again, in the channels where they're going to be present. And so it is about using that data in order to build a compelling proposition and make sure that we're, you know, we're easy to see in here, and we're relevant to the customers as well with what we're showing them and where we're showing it to. And pizza or just the the food industry is a really interesting category because some customers tend to stick with what they like and others are a little bit more adventurous. How do you encourage your customers to try new and innovative offerings to grow that retention? Well, it I mean, it comes down to making sure that what we are putting out there is something that the our customers are gonna be interested in. Right? So we do tons and tons customer research. As I mentioned, we speak to our suppliers. We look at food trends. So what we're what we're putting out in the market is should be products we know our customer base is interested in in the first place. Obviously, there are always gonna be people who who want their pepperoni pizza or aren't gonna buy anything else. But generally, people wanna try something a little bit different, and you need to pique their curiosity. So making sure that a, they're aware that those those new products are out there, making them look super attractive and delicious so that when you see them, you really want them. But also making them curious. So do you, you know, sometimes it's contextual. Like the euros now, we're doing kind of European flavor to tie in with the European Football. Sometimes it's about brand tie ups like we did with our KFC pizza where, you know, There's a massive crossover between the KFC and the Pizza Hut brand, and they're a sister brand. So, actually, that drove massive interest across our customer base because people were really curious curious about the flavor combinations of two of their favorite brands. So I think of, of course, you'll get people who always who always want the same thing, but actually, I think people are naturally curious. And as long as you're playing to, tastes and worlds that they're interested in, then they will they will come and try new things too. Thanks so much for those insights, Kat. And what lies ahead for Pizza Hut? Where do we see the next five years going? I mean, it goes without saying we obviously wanna grow the business. But we're but we know that's all about customer experience. Right? So I think we'll be continuing the journey we've been on the loss few years where we're really looking at improving the customer experience, especially where we can leverage new emerging technologies in order to do that. And, of course, we wanna deliver the best tasting pizza. Right? So we're constantly looking at kind of those food trends and customer preferences to ensure that both our core menu, but also the innovations that we bring out are, really what our customers are looking for and things that our customers will love. And then more and more, we're also looking at how we kind of make a better planet too. So that there'll be a lot of focus around our new, social purpose. Initiative, which we're working on with Hatch. And then also, around sustainability is obviously massive for everyone right now. So we'll be really looking at how at that over the next five years too. Thank you for your insight, Kat. And is there any advice or tips that you'd like to share with with the rest of our audience or to others in the industry? I think really, you know, You have to focus on what your customers want. Right? There's no other we all talk about personalization. We all talk about data or what channels to be in, but ultimate we need to deliver for our customers, and that's what's gonna keep our customers coming back. So just make sure, really, you keep your customer at the heart of everything that you do, the data, the personalization, the technology, all that is doing is giving you enablers and capability that drive what your customer's needs and wants are. And and so just remember always keep the customer at the heart of everything that you do. Thank you so much for your time, Kat, and thanks for joining us today. Thank you. At retail revivals this year, we have many other leading brands who are sharing their insights in best practices on this success. Please be sure to catch the other sessions, but they're also made available on demand to watch them at your convenience. On behalf of everyone, Lily Masters and SAP, thank you for your time, and thank you for joining us.
