Growing revenue with AI-Powered marketing campaigns and mini-games: Part 2 of Papa Johns Case Study.
We’re about to dive into our second article in the series on the “Successful Growth Strategy of Papa Johns.” In the previous post, we explored a revolutionary approach to building customer loyalty with a gamification-focused tiered loyalty program, unique to the QSR business in the MENA region. Each of the described strategies unveils critical insights and […]
We’re about to dive into our second article in the series on the “Successful Growth Strategy of Papa Johns.” In the previous post, we explored a revolutionary approach to building customer loyalty with a gamification-focused tiered loyalty program, unique to the QSR business in the MENA region.
Each of the described strategies unveils critical insights and proven strategies that have transformed Papa Johns loyalty program into a model of success. In this article, we dive into two more game-changing strategies: how to grow revenue with AI-powered marketing campaigns and how to educate customers through engaging mini-games. Fasten your seatbelts as we start revealing our biggest secrets and share the astonishing results of our loyalty program.
Spoiler alert: Papa Johns achieved a 5-7% increase in monthly marginal profit from direct online orders through both the application and website with our AI-driven campaigns and reached over 10,000 participants in our mini-game initiatives, bringing in tens of thousands of extra dollars in profit!
Pillar 3. Ai-powered personalized campaigns to win back lapsed customers
The Papa Johns Loyalty program is incredibly intricate. As discussed in previous article, it includes a tiered loyalty program with gamification elements, statuses, a rewards catalog and more. A crucial component of this comprehensive loyalty solution is AI-powered personalized campaigns.
These campaigns create personalized messages for customers based on their order history, preferences, and order frequency. The main goal of these campaigns is to match the perfect proposal, which can be a free pizza or any other menu item, that will encourage a customer to place an order within a limited time frame. Each of these special proposals is formed using a specially verified AI algorithm.
We divided the entire database of guests into two categories:
Active customer cohorts:
- Heavy users: 3+ orders a month
- Medium users: 2 orders a month
- Light users: 1 order a month
Lapsed customer cohorts:
- Lightly lapsed: no orders for 1-2 months
- Medium lapsed: no orders for more than 2-4 months
- Super lapsed: no orders for more than 4-12 months
Example: if there is a super lapsed user who likes Pepperoni, after internal calculations, the system might send a push notification with the following message:
Thus, the AI-powered campaigns create various marketing push messages to encourage customers to place an order as soon as possible. Such AI campaigns show fantastic business results, as evidenced by the growth in marginal profit, which you can read about in the following part of this article.
Business impact: incremental marginal profit from ai-powered personalized campaigns
Since launching AI-powered personalized marketing campaigns for different target groups within Papa Johns audience through our CRM system, we consistently receive a 5-7% increase in monthly marginal profit from direct online orders through both the application and website.
These personalized campaigns enable us to tailor our marketing efforts more effectively, targeting specific customer segments with relevant offers and promotions. As a result, we have seen improved customer engagement, higher conversion rates, and increased customer loyalty.
The implementation of AI technology in our marketing strategy has proven to be a valuable asset, contributing to the overall growth and profitability of our online sales channels. We continue to refine and optimize these campaigns to sustain and further enhance our business performance.
Pillar 4. Engaging mini-games that help educating customers about the brand’s menu
Imagine discovering new menu items in a way that’s not just informative but incredibly fun! We found an innovative way to educate customers about their new flavors and unique pizza offerings through captivating mini-games. These games make learning an adventure, allowing customers to remember everything from new flavors to the intricacies of pizza-making in an enjoyable and memorable way.
Papa Johns’ mini-games are designed to be both exciting and educational. They strike the perfect balance between challenging and entertaining, keeping players engaged without overwhelming them. Plus, the thrill of competition is heightened by the chance to win a free pizza with a new flavor they’ve never tried before!
Here is how it looks: a dedicated app section introduces the new Crispy Parm Crust and invites customers to play “The Game of Crusts”:
Take, for instance, a special section of the Papa Johns app that introduces the new Crispy Parm Crust. It invites customers to dive into ‘The Game of Crusts’, starting with an interactive tutorial that educates them about different pizza crusts, including the top four from Papa Johns.
As the game begins, players learn about various pizza types and flavors, helping them get familiar with the menu. Later, they must match pizza cards to win, reinforcing their memory of the menu items. This unique approach ensures that players who remember the details can win, making the experience both challenging and incredibly rewarding.
Do you want to play by yourself? Go for it now!
Launching this game marketing campaign involved creating a dynamic landing page with a QR code, various attribution methods, and gift activations. The response was phenomenal! Over 10,000 people participated in the quest from start to finish. Despite our initial worries that the game might be too complicated, our fears were unfounded. Nearly 30% of participants who completed the quest converted to real orders, bringing in tens of thousands of dollars in additional revenue!
For the QSR market, it’s undoubtedly a perfect solution because marketers in this field always think about how to introduce new menu items in a way that feels natural and playful, rather than overtly sales-driven. By integrating mini-games into their marketing strategies, Papa Johns has not only educated customers about their menu but also sparked excitement and boosted engagement, driving significant revenue growth. This innovative approach has turned learning about pizza into an unforgettable adventure.
Ready to grow?
Do you want to start a game-changing loyalty program for your restaurant? Regardless of the size of your business, we offer you the chance to experience the best world practices and build real connections and relationships with your audience. This will not only make your guests truly love your brand but also boost your restaurant’s revenue.
If you’re ready to grow, leave your contact information here. Our team will conduct a free business analysis of your restaurant and unlock the potential you can achieve by effectively engaging with your most valuable asset—your guests.
