Pizza Hut is an international fast-food franchise founded in the United States, promising the best ingredients and the freshest food. It has served customers in more than 100 countries. Pizza Hut Taiwan was founded in 1986 and is well known under the Chinese name of “Bi Sheng Ke”. The brand is much-loved by its Taiwanese customers.
The pizza delivery market in Taiwan has always been competitive, and has only become more so in recent years with the rise of food delivery operators and changing consumer behavior. Pizza Hut Taiwan is dedicated to providing the tastiest food and the fastest and most convenient service. More than 60% of Pizza Hut Taiwan’s orders are placed online, and the brand works to consistently improve the online customer experience. Pizza Hut Taiwan develops digital marketing strategies designed to increase the number of online orders and engage in precision marketing by offering deals and coupons that are aligned with customer needs. To grow profit, it is always looking for ways to do these things more efficiently and effectively.
Pizza Hut Taiwan has always been aware that better digital experiences for customers help to increase the conversion rate of online orders. The brand is strict about ensuring that customers can place an order online through no more than five steps. Pizza Hut Taiwan also provides coupons to encourage orders, but it realized that giving coupons to undifferentiated customers was leading to reduced profits as the offers were not accurately targeting the shopper.
Pizza Hut Taiwan engaged Appier to find a solution that would directly target indecisive customers to encourage them to complete a transaction and grow overall online conversion rates. Appier’s solution AiDeal uses AI to identify hesitant shoppers and offer them targeted, limited time deals to drive purchases.
The target audience for Pizza Hut Taiwan is hesitant shoppers with the highest potential to buy and highest transaction per customer (between NTD 500 and 999). The conditions of the offer are a discount of NTD50 if an order is completed within 30 minutes of receiving the coupon. Finally, Pizza Hut Taiwan engaged in A/B testing during the promotion period to review the volume of online transactions before and after introducing AiDeal.
With the addition of AiDeal, Pizza Hut Taiwan saw the following results:
- Website conversion rate increased 15%
- Website page views grew by 9%
- Transaction time was shortened by 20%
- 26% of online customers added items to their shopping carts
When compared to customers who did not receive a coupon, transactions grew by 17%. Shoppers who received a coupon completed more online orders than those who did not, especially within the target audience. Additionally, shoppers who received a coupon completed their orders faster. Pizza Hut Taiwan saw the most significant growth- 20%- from hesitant shoppers who completed orders between 10 and 20 minutes from receiving the coupon.
AiDeal features advanced machine learning that rapidly segments customers based on real-time intent. The more data it analyzes, the more precise it becomes in delivering the best offers to the most valuable audience. For Pizza Hut Taiwan, this means that the conversion rate for the second week of the promotion period was higher than the first by between 6 and 8%. The data also showed that coupons are less effective with people who have visited the website for more than seven pages, so coupons were targeted at visitors who viewed the page fewer than three pages. Finally, targeting shoppers during their browsing period on the website is the best time to exert influence over their purchasing decision.
Howard Li, Digital Operations Director of Jardine Food Services (Taiwan)
“Pizza Hut Taiwan is consistently looking for the most innovative technology and best partners to help us develop the most effective digital marketing strategies, optimize online user experience and manage our digital transformation overall. Appier is a leading artificial intelligence solution provider with abundant expertise and experience in helping enterprises to tackle diverse business challenges. During our collaboration, AiDeal’s product features perfectly addressed Pizza Hut Taiwan’s challenges and pain points. The Appier team demonstrated strong performance from the initial stages of our work together, and helped us to continually refine and optimize the solution. I witnessed Appier’s strong technology capabilities and excellent teamwork. Thanks to Appier’s proficiency in digital marketing, I’m confident that Pizza Hut Taiwan will be able to uncover many more future opportunities.”
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