Papa John’s CEO Nigel Travis Shares Online Marketing Success
Founded 24 years ago by John Schnatter, Papa John's with 3,270 restaurants world-wide in 28 countries surpassed $1 billion in online sales through its online ordering site, papajohns.com. Nigel Travis shared his story with us at the ExactTarget Connections conference.
They are currently addressing these business challenges:
- Commodity inflation
- Labor costs
- Rising fuel costs
- Credit crunch
- Consumer woes
- Wall street bailout
Here's what they're doing to address using technology and software:
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Driving top-line revenue
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Subsidize franchisees
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In store productivity improvements
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Unit growth to achieve more scale
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Food service productivity opportunities
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Corporate cost containment
Role of Online:
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Attracts different and new segments
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Drives great convenience to customers - 55% of customers store their credit card online
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Higher ticket average & frequency - industry average frequency is 4 times per year, Nigel wouldn't share their current frequency
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Self selected price increase
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Stickability
Here's what they've found:
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iPhone is by far and away the most used mobile device used to order pizza.
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Online is more than 20% of total sales and they did $400M in online sales in '07.
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Online orders have increased 50% each year since 2001 and have processed more than 60K orders in 1 day!
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50% of customers have ordered online at least once.
Online tools used today include:
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Local Search and Banner Advertising
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Email marketing
Key to their success: Helping the "uninitiated"
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Simplicity and reduce the steps
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Pressure testing -
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Check the obvious - miles from home, instead of miles from store
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Email frequency is key - their rule is no more than 2 emails a week.
The future of eCommerce for Papa John's include:
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Interactive TV
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Gaming consoles
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Andy device with connectivity, because if you can communicate with it you'll be able to order with it
Nigel offered a free Papa John's offer: "Just text pizza to 47272 and you'll get a promo code from Papa John's" for a free 1 topping medium pizza. ENJOY! If you take just text the promo, please comment below.
Comments
email marketing tools…
Interestingly, this was on CNN last week….
Please pass this on to the Papa John’s customer service people or whoever can impact this situation. I live in Guangzhou, China. My family orders pizza from Papa John’s once a week. Until recently, we ordered from the Citic Plaza location, who had our address on file and did an excellent job in preparing and delivering our order. We are now considered ‘out of their delivery range’ and must contact the Grandview Mall location. (note that we are actually located half way between these two locations.) The Grandview Mall employees do not understand where we live in Chinese much less English, nor do they keep our address on file. This evening, as is typical, I have spent 15 minutes and talked to 8 employees in Chinese and English in regards to my order and my delivery location. I do not believe I will be seeing this order. Please, either allow adequate delivery range from Citic or improve the training and quality of employees at the Grandview site.
Regards,
Diane Ashburner
Pizza was not invented by Italians. It was invented by the greeks