Using Big Data to Improve Guest Reactivation
Hungry Howie’s is one of America’s Top 10 Pizza Franchises, and according to NRN, one of the fastest growing chains in the country. They operate over 550 locations across 21 states and are famous for their Flavored Crust® pizza, exceptional value and strong customer loyalty.
Even in light of their recent successes in growing the brand, Hungry Howie’s continues to maintain very aggressive growth goals. They believe marketing is a critical driver of their expansion, and that the right technologies can reduce the cost of getting customers back through the door.
Understanding Hungry Howie’s Customer Behavior
The first thing Bridg did was provide an analysis of the pizza chain’s business health, and pair that with a live-daily feed of customer buying trends inside a single dashboard. While this type of data-sync would take a consulting firm months to complete, Bridg gets it done in a couple of days.
Once the sync was completed, Hungry Howie’s marketing team was able to log in to the Bridg app, and access insights from tens of millions of online and in-store sales transactions from the past several years.
Identifying Opportunities to Reactivate Lost Customers
The initial lifecycle analysis of Hungry Howie’s customer base confirmed that winning-back more lapsed customers was a large revenue opportunity for the brand.
Since previous direct-mail reactivation campaigns had yielded unmeasurable results – early expectations for Bridg were conservative. Hungry Howie’s first goal: convert 2% of lapsing guests back into core customers.
Bringing Back More Lapsed Guests
Unlike most lapsed customer models, where people are considered lapsed after a pre- determined period of time, Bridg determines ‘lapsing behavior’ based on each individual buying trends.
One customer that visits daily, might be considered lapsing after 4 days, for another that only visits occasionally, it might be after 4 months. Bridg’s software is smart enough to understand this subtlety and account for it in the segmentation.
Once the dynamic lapsed customer segment was created, Hungry Howie’s used Bridg to launch an automated email marketing campaign, with messaging and offers designed specifically to get customers to return to the brand.
The results of Hungry Howie’s targeted reactivation campaign have been impressive. The first win-back campaign had a significant impact on month-over-month reactivation – ultimately converting 3% of lapsing guests back into core customers. The follow-up campaign has been even more successful, achieving an impressive 7% reactivation rate.
of guests who redeemed the promotion returned for a second time within 2 weeks.
increase in average ticket for campaign participants (including cost of the discount).
Overall, these rates represent a significant improvement from previous campaigns – at a fraction of the price. Furthermore, the team found those customers that returned as a result of the campaign ended up spending 24% more than an average ticket, even after discounting the cost of the coupon. This type of learning was impossible before Bridg.
Perhaps most encouraging, Hungry Howie’s found that more than half of the customers that redeemed their win-back coupon returned a second time with no additional offers or incentives – resulting in a 100% improvement in revenue for no additional cost. This finding proves that getting people to become repeat customers, can be as easy as providing a well- timed nudge in the right direction.
Next Steps: Continue to Test and Learn
By partnering with Bridg, Hungry Howie’s has been able to make significant progress towards their key goals. In their first few months with the platform they have been able to identify reactivation as a top marketing priority, and take real action on this insight in order to drive revenue lift. But there is still more to be done.
While the marketing ROI of their reactivation campaigns have exceeded expectations, Hungry Howie’s is confident that they can achieve even greater results by integrating the learnings of these first campaigns.
Bridg provides Hungry Howie’s with a powerful solution for driving same-store sales growth. The software provides unprecedented insight into customer behavior, and can help predict business health. Operationally, it fits the marketing department like a glove and allows them to deliver targeted offers with a subset of customers without any new staff or training.