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, bucause 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.