This week has been a nice mix of continuing initiatives and new progress. In terms of continuity, we continue to give tens-of-thousands of free pizzas to hospital workers through the #HeroPies promotion. It feels good to make a difference! In terms of new progress, I am pleased to share that I have finished creating the promotion analytics dashboard.
While I am understandably not able to share any specific numbers, I am able to diagram what it looks like. This dashboard can be used for every &pizza promotion. Take a look at the visual below, which uses the #HeroPies promotion as an example.
Let’s breakdown why all this information is useful through a few questions:
Why do we care about new leads and registrations?
New leads and registrations information is useful because it makes it possible to connect transactions to customers. This is very valuable. When taking advantage of an &pizza promotion, a customer texts a keyword (e.g. #Hero) to 200-03, and we have sparked an interaction with the customer. This is considered a new lead. Our hope is that this customer will proceed to register for an &pizza account, in which case the customer is sharing information helpful for us in exchange for discounts useful to them. In an earlier post, you may recall that I compared this to places like Dunkin, Starbucks, and Chipotle, among others, offering perks like free beverages for customers who participate in their rewards program. Knowing about the customer on the other end of a transaction makes it possible to market to them more effectively, and, in turn, to get them to become an even more loyal &pizza customer.
What is important about metrics like average transaction value or average transactions to date, and what is the use in visualizing these metrics over time?
We want to know how effective a promotion is at getting customers to come to &pizza. Does taking advantage of a promotion initiate a string of transactions and grow customer loyalty to the brand? Does it cause customers to spend more, on average, per transaction? This information lets us see how promotions fare in the long haul. It provides an indication of the success of the promotion.
How do you know whether a promotion has been successful?
There are many ways this question could be answered. For example, is a promotion successful if it attracts a particularly high amount of new leads and registrations? What about if it induces many future visits or increases average transaction value? There are many definitions of a successful promotion, and the answer is likely a combination of all of them. One conventional definition is that a promotion has been successful if, over time, the revenue created is greater than the cost of running the promotion.
That’s it for this week! Thanks for reading, and, as always, let me know if you have any questions!
P.S. For this week’s Stat of the Week, Texas Rangers hitter Joey Gallo is known for hitting for power, and it has produced some rather bizarre stats. According to Baseball Reference, in the 2017 and 2018 seasons, Joey Gallo hit more home runs (41 and 40, respectively) than singles (32 and 38, respectively). Not exactly a common feat, especially in the modern baseball era!