Case Study: Pizza Chain Sells Out of Pizza Dough with SMS Marketing

Our client is a fast-food chain with over 60 locations and 2,000 employees. The firm has amassed a sizable and active social media fan base, and has recently reallocated a portion of its marketing budget to SMS marketing with Raange to test a new revenue channel, with the following results:

  • Sold out of pizza dough after first SMS campaign with Raange
  • Uplift in online orders in the first hour after sending campaigns
  • +25X ROI on SMS marketing campaigns

“There’s no denying SMS marketing with Raange really works. The online sales are instant and ongoing and we’ve had a great reaction from our customers. Now text messaging is part of our monthly marketing mix.” – CMO.

Challenge

The Pizza Chain wanted to try a new revenue channel that could drive more online sales for each restaurant location. 

They were having success with their social media programs and advertising to grow their audience and maintain market share, but they were looking to try something new to boost customers’ lifetime value and encourage repeat pizza purchases.

A new marketing platform for needed to be able to scale with the company’s rapid expansion over the past two years and future growth plans, plus provide robust store-level segmentation in order to be considered.

Solution

The marketing staff at the Pizza Chain collaborated closely with their Raange account manager and customer success team to determine the most effective strategy for launching a new text message marketing program.

“Working with the team at Raange has been great,” CMO says. “They’ve really gone out of their way to make sure we’re set up on the marketing engagement platform and they provide strategic guidance on running SMS campaigns.”

The Pizza Chain was already sitting on a valuable marketing database (customer contact information) in their online ordering platform (and/or POS) and needed a way to unlock this data to drive more sales. 

Raange created segmented store-level lists in the marketing engagement platform, with the customer data. Each list could receive a customized message for that specific store location. 

The Pizza Chain held a lunchtime sale on a Friday at 10:00 am, providing customers with an all-dressed pizza for only $8.99 as part of the campaign for the real test.

Customers were sent text messages in the language of their choice: French or English. 

Results

It was a surprise rush for the Pizza Chain, and they sold out of pizza dough by lunchtime.

Because consumers read and reply to text messages in less than 5 minutes, you can expect to see a boost in traffic to your online ordering page as soon as you send the message (98% open rate for text messages vs. 15% open rate for email).

Since then, the Pizza Chain has continued to use SMS marketing for their restaurants and Raange’s SMS Chat features, for customer support.

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