Pizza Hut: Feed a Friend - Leveraging the natural fit between loyalty and social media

M&C Saatchi/Profero

EXECUTIVE SUMMARY

Faced with brand-eroding discounting in the category, we asked ourselves what we could do to improve loyalty to Pizza Hut. We noted that while friendship is based on loyalty, few loyalty schemes are housed within social networks.

Our strategy was to reward our customers through Facebook with a gift for them plus one they could give away: even a modest loyalty reward has a whole lot more perceived value if you can give it to a friend. The act of giving is public: making it a loyalty scheme and viral marketing campaign all in one.

The creative solution was a Facebook App, Feed a Friend. It yielded $2.5m in sales, profitable redemption, greater loyalty and 1.5 million impressions of free exposure off a development cost of just $55,000.

Combining the natural fit of Facebook, the world's largest social network, with the world's most social food, Pizza Hut offered customers "The First Facebook Gift You Can Eat." It allowed Pizza Hut to reward loyal customers, but with a public and viral campaign that helped Pizza Hut reclaim the brand high ground of "Social Food".

A WORLD OF DECLINING LOYALTY