Hawthorne's Pizza Uses Digital Coupon Solution to Grow Sales
The retailers involved in the program don't have to make any changes to their processes (e.g., point-of-sale integration), which was a key selling point for Hawthorne's Pizza. In fact, they don't even know the customers that are being driven to their stores because of the offers; the transaction data never leaves the bank. Retailers participating in the program are only privy to aggregate-level sales and performance data.
"Since it's marketed on their bank statement, we're not going to get that private information," notes Vincent of Hawthorne's Pizza. "We haven't devised a way yet in-store to figure out who these Bank of America customers are. It's tough to ask everyone if they're here because of a Bank of America deal, but what we can see based on reports at the end of the month is how much value I'm getting from this. We're getting much more than four times to five times what we spend into the program at the end of the month."
Hawthorne's has seen its biggest success coming from its infrequent customer segment. Having its ads displayed to customers that are familiar with Hawthorne's but for some reason have lost touch with the brand is invaluable.
"For the infrequent customers, I've seen up to 70 percent to 80 percent redemption rate for a month, and that's insane," says Vincent. "When I see an infrequent customer, someone who has already been with us so they know us, I just need to push them over the edge to make them a loyal customer. When I see they're redeeming the offer upwards of three-fourths of the time, it just blows you away."
The targeted nature of the offers is particularly fruitful for a local merchant like Hawthorne's Pizza. With access to nearly 13 months of historical transaction data, Hawthorne's can target consumers in a specific ZIP code, based on purchases from a specific store name (e.g., a competing pizzeria), the category of the store (e.g., quick-service restaurants), the number of purchases and the amount of money spent on those purchases.