CRM at PIZZA HUT M6-17

CUSTOMER RELATIONSHIP

MANAGEMENT AT “PIZZA HUT”

SUBMITTED TO:-

T. THIRUMAL REDDY

(ASST.PROF OF MARKETING)

SUBMITTED BY:-

B.RAJU

M6-17

INTRODUCTION OF CRM:

The expression customer relationship management (CRM) has only been in use since the early 1990s. Since then there have been many attempts to define the domain of CRM. As a relatively immature business or organizational practice, a consensus has not yet emerged about what counts as CRM. Even the meaning of the three-letter acronym CRM is contested. For example, although most people would understand that CRM means customer relationship management, others have used the acronym to mean customer relationship marketing. 1 Information technology (IT) companies have tended to use the term CRM to describe the software applications that automate the marketing, selling and service functions of businesses. This equates CRM with technology. Although the market for CRM software is now populated with many players, it started in 1993 when Tom Siebel founded SiebelSystems Inc. Use of the term CRM can be traced back to that period. Forrester, the technology research organization, estimates that worldwide spending on CRM technologies will reach US$11 billion per annum by 2010. 2 Others with a managerial rather than technological emphasis claim that CRM is a disciplined approach to developing and maintaining profitable customer relationships, and that technology may or may not have a role.

DEFINATION:

CRM is an information industry term for methodologies, software and usually Internet capabilities that help an enterprise manage customer relationships in an organized way.3 CRM is the process of managing all aspects of interaction a company has with its customers, including prospecting, sales and service. CRM applications attempt to provide insight into and improve the Company customer relationship by combining all these views of customer interaction into one picture.

CRM is an integrated approach to identifying, acquiring and retaining customers. By enabling organizations to manage and coordinate customer interactions across multiple channels, departments, lines of business and geographies, CRM helps organizations maximize the value of every customer interaction and drive superior corporate performance.

CRM is an integrated information system that is used to plan, schedule and control the pre-sales and post-sales activities in an organization. CRM embraces all aspects of dealing with prospects and customers, including the call center, sales-force, marketing, technical support and field service. The primary goal of CRM is to improve long-term growth and profitability through a better understanding of customer behavior. CRM aims to provide more effective feedback and improved integration to better gauge the return on investment (ROI) in these areas.

CRM is a business strategy that maximizes profitability, revenue and customer satisfaction by organizing around customer segments, fostering behavior that satisfies customers and implementing customer centric processes.

There are many different facets of CRM for every business:

Identifying qualified leads and gaining new customers Closing sales more effectively and efficiently Allowing customers to perform business transactions quickly and easily Providing service and support following a sale

Customer Relationship Management (CRM) refers to the methodologies and tools that help businesses manage customer relationships in an organized way.For small businesses, customer relationship management includes:- CRM processes that help identify and target their best customers, generate quality sales leads, and plan and implement marketing campaigns with clear goals and objectives;- CRM processes that help form individualized relationships with customers (to improve customer satisfaction) and provide the highest level of customer service to the most profitable customers;- CRM processes that provide employees with the information they need to know their customers' wants and needs, and build relationships between the company and its customers.Customer relationship management tools include software and browser-based applications that collect and organize information about customers. For instance, as part of their CRM strategy, a business might use a database of customer information to help construct a customer satisfaction survey, or decide which new product their customers might be interested in.Also Known As: CRM; sometimes called customer service management.

Getting the hype out of Customer Relationship Management

Summary: Key to stability in today's dynamic marketplace is in forging long-term relationships with customers. Technology is changing at such a fast pace today that by just offering a service

Or a product a business won’t be at an advantage for too long. A customer-facing business is one in which the customer can demand and receive what he wants.

The Customer is not new, Relations are as old as a buyer and a seller and so is Management.The concepts of CRM have existed since the concept of buying and selling came into being.Then, what is creating waves in today's CRM industry? Is that small electronic 'e' changing the trend?

CRM is considered to be a software tool and a technology solution in this Information Technology industry. In fact CRM is a strategy towards achieving a holistic view of any partner engagement. CRM, which is a combination of marketing and business processes, is the basic understanding of customers and how organizations measure them. The mantra behind CRM isCatering to customized needs "centrally".

As defined by the "gurus" of CRM - Customer Relationship Management is a business strategy to select and manage the most valuable customer relationships. CRM requires customer-centricBusiness philosophy and culture to support effective marketing, sales and service processes. CRM software applications can enable effective customer relationship management, provided that an

Enterprise has the right leadership, strategy and culture.

Why CRM?

Keeping in mind the pace at which technology is changing today, any company which is a step ahead of others because of some web product or service will not be able to hold on to that advantage for long. The key to stability in today's dynamic market place is forging long-term relationships with the customers.

Customers can be divided into three zones:

1. Zone of defection where customers are extremely hostile and have the lowest level of Satisfaction.2. Zone of indifference where customers are not sure. They have a medium level of satisfaction and loyalty towards the company.3. The third level of customers is in the zone of affection described as "Apostles".CRM focuses on bringing customers from level 1 to level 3 and retaining apostle customers.Customer demands for customization are increasing with every passing day. This has made companies shift their focus from "mass production" to "mass customization". The present scenario of companies using "poorly implemented" multi channel strategies for living up to the expectations of customers is bringing both customer satisfaction and customer loyalty down the Ladder.

Take the example of a small enterprise. Here hard work reaps high quality service and over the years develops a database of loyal customers. In this enterprise computers are optional. Then whyIs the CRM industry attracting investments of millions and billions of dollars? The reason is simple. The concept of "Seller's Customer" has just rotated 180 degrees to become “seller’s customer”. This simply states that, now the customer is more powerful than the seller. Options for customers have increased with the cycle of innovation-to-production-to-obsolescence gaining Momentum. On the other hand companies are finding it difficult to differentiate themselves in the marketplace. These factors are pushing companies into taking a closer look at their customer Relationships.Today any company can copy products or services offered by other companies. If the new entrant adds features like less order turn around time and direct communication then established players are bound to have sleepless nights. Organizations that implement CRM and turn their business into e-businesses will find their competitors' customers ready to welcome them with a "smile".According to a study by IT consulting firm Aberdeen - "The winners in this new economy will be those companies that can effectively leverage the Internet to redesign, automate and integrate all business operations."Organizing business to satisfy customer demands organizes / simplifies internal functioning of the organization. Implementing CRM brings to the front the "pits" that the organization had dug over the years, passing work from one pit to another. Workflows are reduced, cycle times become shorter, information flow of non-productive things gets eliminated and the most important thing -"Pits" get covered automatically with all the positive features. Compact sized

organizations get into a position of making more money. This in turn enables them to please more customers.

TYPES OF CRM:

Type of CRM Dominant characteristic

StrategicStrategic CRM is a customer-centric strategy that aims at winning and keeping profitable customers.

OperationalOperational CRM focuses on the automation of customer-facing processes such as selling, marketing and customer service.

AnalyticalAnalytical CRM focuses on the intelligent mining of customer-related data for strategic or tactical purposes.

CollaborativeCollaborative CRM applies technology across organizational boundaries with a view to optimizing company, partner and customer value.

COMPANY PROFILE:

The legacy of Pizza Hut began in 1958, when two college students from Wichita, Kansas, Frank

and Dan Carney, were approached by a family friend with the idea of opening a pizza parlor.

Although the concept was relatively new to many Americans at that time, the brothers quickly

saw the potential of this new enterprise.

After borrowing $600 from their mother, they purchased some second-hand equipment and

rented a small building on a busy intersection in their home- town. The result of their

entrepreneurial efforts was the first Pizza Hut restaurant, and the foundation for what would

become the largest and most successful pizza restaurant company in the world. Products of pizza

have been voted Number One in countless consumer surveys nationwide. And our

accomplishments as an innovative business leader have been cited by such respected publications

as Restaurant Business, Fortune and The Wall Street Journal.

Pizza Hut, Inc., a division of Tricon Global Restaurants, Inc., has more than 7,200 units in the

U.S. and 3,000 units in more than 86 other countries. Tricon is the parent company to two other

segment leaders, Taco Bell and KFC. When combined with Pizza Hut, these organizations make

up the world's largest restaurant group, with almost twice as many units as McDonald's.

Beginning with the original thin crust pizza first served in 1958, Pizza Hut   has made

continuing efforts to refine their products, and to develop new products suited to every consumer

taste.

Today, five major products, Pan Pizza, Thin 'N Crispy pizza, Hand-Tossed Style pizza, Stuffed

Crust Pizza and The Big New Yorker Pizza are loved by millions around the world and have

become the standard by which all others are judged.

They are working together to run great restaurants in order to be the best at making and serving

the best pizza in America. That means they are willing and able to go to any lengths to make

their customer's experience with Pizza Hut an enjoyable one. And it means they strive to present

the finest products the industry has to offer, and to provide those products wherever and

whenever people want them.

1958:

The first Pizza Hut restaurant opens in Wichita, Kansas, started by two college-aged brothers

who borrowed $600 from their mother.

1959:

Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka, Kansas.

1965:

"Putt-Putt to Pizza Hut" musical jingle developed for Pizza Hut's first television commercial.

1967:

A Pizza Hut restaurant was built in five days by franchisees at the Oklahoma State Fair.

World's largest pizza (six feet in diameter) is baked and served at the grand opening of a Fort

Worth, Texas Pizza Hut restaurant.

1968:

International market entered with opening of Pizza Hut restaurant in Canada.

Pizza Hut serves a million people a week at its 310 locations.

1969:

Red roof adopted for restaurants.

First Pizza Hut restaurant opens in Mexico. Construction begins in Munich, Germany and

Australia.

1970:

Sandwiches added to basic menu of Thin 'N Crispy pizza, salad, beer and soft drinks.

First restaurant opened in Australia.

1971:

Pizza Hut becomes the number one pizza restaurant chain in the world in both sales and number

of restaurants.

1972:

Pizza Hut, Inc. listed on New York Stock Exchange under the symbol PIZ.

Pizza Hut restaurant number 1,000 opens in Wichita, KS. A unit opens in Costa Rica.

1973:

Pizza Hut restaurants open in Japan and England.

1975:

Thick'n Chewy pizza introduced.

Chatsworth, CA Pizza Hut restaurant is used in the filming of "The Bad News Bears."

1976:

The 100th international Pizza Hut restaurant is opened in Australia, while entire system reaches

2,000.

1977:

Pizza Hut, Inc. stockholders overwhelmingly approve merger with PepsiCo, Inc. for an

undisclosed sum.

Super Supreme is introduced nationwide.

Pizza Hut opens its 3,000th unit in Arlington, Texas.

1979:

The Sicilian Pan Pizza is introduced.

Units open in Kuwait and Abu Dhabi.

Pizza Hut raises $342,000 for Easter Seals from national promotion.

1980:

Pan Pizza is introduced throughout the system.

Restaurant numbers 4,000 opens.

1982:

The Pizza Hut ET glass promotion is picked as the top marketing promotion of 1982 by the

editorial staff of Chain Marketing and Management.

Pizza Hut serves one and a half million pounds of pasta annually.

1983:

Personal Pan Pizza, with a five-minute guarantee, is introduced throughout the system.

Pizza Hut celebrates 25th anniversary.

Pizza Hut employs 10,000 teenagers from 16 to 19 years old.

1984:

BOOK IT! National reading incentive program is launched with 200,000 elementary students

enrolled.

There are more pizza locations than hamburger restaurants in the United States. Pizzerias

account for 9.9% of all restaurants in the U.S.

1985:

Priazzo and Calizza are introduced.

1986:

The system celebrates the opening of its 5,000th restaurant, located in Dallas, Texas.

Delivery service, as a new concept, is initiated.

Fastest construction of a Pizza Hut restaurant takes place in Wichita, KS --- 39 days from start

to finish. The national average is 85 days.

1988:

Hand-Tossed Traditional Pizza is introduced throughout the system.

Pizza Hut celebrates its 30th anniversary with a total of more than 6,000 restaurants and delivery

units worldwide.

President Ronald Reagan awards Private Initiative Citation to Pizza Hut President Art Gunther

for the creation of BOOK IT! program.

1989:

The Pizza Hut Jobs Plus program expands nationwide to employ more than 10,000 individuals

with physical and developmental disabilities. The Jobs Plus program is recognized as the largest

corporate initiative of its kind in the food service industry.

Pizza Hut opens its 1,000th international unit in Welland, Ontario, Canada. Pizza Hut now

serves 54 countries.

Pizza Hut sells 9.1 million "Land Before Time" puppets. When released to the public, the movie

enjoyed the largest opening ever for an animated feature.

For the first time in history, Pizza Hut pizza is delivered to the White House. First Lady Barbara

Bush throws a party for 200 Washington, D.C. children during a "Reading IS undamental"

reception.

1990:

Pizza Hut system sales reach $4 billion.

Pizza Hut delivers more than 1,340,000 pizzas on Super Bowl Sunday, about 7,000 pies a

minute.

Kamran Atri, assistant manager in Leesberg, VA serves his way into the Guinness Book of

World Records by waiting tables at the Leesberg, VA Pizza Hut restaurant for 136 hours,

donating $1,200 in tips to the Loudoun County Shelter for Abused Women & Children.

More than 4,000 Jobs Plus employees work for Pizza Hut. Personal Pan Pizza becomes

available at 1,000 Stop 'N Go convenience stores.

1992:

Lunch buffet introduced in 1,800 units.

Pizza Hut sets up two mobile hot trailers in Florida City and Goulds, FL after Hurricane Andrew

wreaks havoc. Pizza Hut provides 120,000 free meals to relief volunteers and those who lost

their homes.

Pizza boxes redesigned to save 275,000 tree a year.

1993:

Pizza Hut introduces BIGFOOT Pizza -- two square feet of pizza cut into 21 slices.

The Harvest Program is launched nationwide to donate surplus food to food rescue agencies.

Pizza Hut makes its fastest and farthest delivery: 600 large pepperoni pizzas on a 24-hour flight

from Dover Air Force Base to U.S. service personnel in Mogadishu, Somalia.

Pizza Hut leads the entire restaurant industry in growth and sets new company records for sales

and profits.

Pizza Hut introduces Chunky Style Pizza in September.

Pizza Hut signs contract with 30 hotel companies throughout the country to provide delivery

service to their registered guests.

1994:

Pizza Hut becomes the single largest retailer of basketballs in the United States, selling 3.7

million balls during its NCAA Final Four promotion.

Pizza Hut opens 9,700 square foot Super Pizza Hut restaurant and entertainment center in

Mexico City.

Pizza Hut in Beirut reopens after being closed during the Gulf War.

Soccer legend Pele kicks a ball through the door of Pizza Hut restaurant number 10,000 in Sao

Paulo, Brazil on April 13.

1995:

Pizza Hut launches the "You'll Love The Stuff We're Made Of" campaign.

Buffalo Wings soar onto Pizza Hut menu. These spicy chicken wings are served with dipping

sauce.

Two Customer Satisfaction programs initiated: 1-800 Customer Satisfaction Hotline and a

Customer CallBack Program, which takes the pulse of 50,000 customers per week.

Pizza Hut launches Pizzeria Stuffed Crust Pizza, which immediately sets company sales records.

The Deliver Me Home program is created by Pizza Hut and the National Center for Missing and

Exploited Children and is tested at the Dallas/Fort Worth International Airport to inform the

community of an important identification tool in helping to locate, identify and return missing

children to their families.

Pizza Hut wins the 1995 "Choice of Chains" award for Best Pizza Chain sponsored annually by

Restaurants & Institutions magazine, making Pizza Hut the "Best Pizza Chain" ten of the last

eleven years.

1996:

Pizza Hut comes to India with a dine in restaurant Banglore that has special vegetarian pizzas.

In additional to traditional Italian toppings , it incorporates Indian favorites such as Chicken

tikkas, Lamb korma etc. In its list of innovative toppings. Along with pizzas, the menu features

appetizers like garlic bread and soups, fresh salads, oven bakes pastas and choice of ice-cream

sundaes.

Pizza Hut airs its first ever ad during the Super Bowl.

Pizza Hut delivers 30% of the 12 million pizzas delivered on Super Bowl Sunday. This is the

biggest pizza delivery day of the year.

On May 30, Pizza Hut introduces two varieties of chicken-topped pizza... Italian Chicken and

Chicken Supreme.

1997:

Pizza Hut opens a restaurant in the capital's building bustling M-block market in Greater

Kailash-I, Unlike the existing Pizza Hut at Shanti Niketan which is delivery counter for just

pizzas, this is dine-in where the entire menu (salads, appetizers, pastas, deserts and of course

pizzas) is available. Letting Delhiites get a taste of Pizza Hut And getting them to 'Get real!'

Pizza Hut launches a meatier pepperoni.

PepsiCo announces restaurant spin-off.

Pizza Hut launches "Totally New Pizzas" a quality initiative putting sliced fresh vegetables and

meaty meats on pizzas.

Pizza Hut launches "The Edge pizza"

1998:

Pizza Hut celebrates 40 years of making and serving great pizza.

Pizza Hut launches "The Sicilian Pizza" a flavorful crust with garlic, basil and oregano baked

right into the crust

Pizza Hut launches "The Best Pizzas Under One Roof" campaign.

Pizza Hut features Sony's Crash Bandicoot in the Stuffed Crust Pizza/Sony Promotion.

1999:

Pizza Hut launches The Big New Yorker Pizza. A 16-inch pizza with a sweeter, savory sauce,

100% real cheese cut into 8 big foldable slices. Pizza Hut brings New York-style pizza across

America.

Pizza Hut features Fran Drescher, Spike Lee and Donald Trump in The Big New Yorker Pizza

advertising campaign. The celebrity campaign launched in the pre-game advertising for Super

Bowl XXXIII.

ORGANIZATIONAL STRUCTURE:

CRM: stands for Customer Relationship Management. The goal of implementing such management system is as follows:

President

V.P. FinanceC.O.O.

(Chief Operating Officer)V.P.I.T. Section

South West

Bangalore Brigade Road

Bangalore Airport Road

Bangalore Vijaynagar

Bangalore Prestige Center

Hyderabad

Ahmedabad

Baroda

Surat

According to Peppers and Rogers, one-to-one marketing that can be adapted to CRM marketing are as follows 

Identify your prospects and customers. Differentiate customers in terms of their needs and their value to your company.

Interact with individual customers to improve your knowledge about their individual needs and to build stronger relationships.

Customize products, services, and messages to each customer. Reducing the rate of customer defection.  Increasing the longevity of the customer relationship. Enhancing the growth potential of each customer through “share-of-wallet,” cross-

selling, and up-selling. Making low-profit customers more profitable or

1. Address value: Nothing illustrates this more than the restaurant’s launch of the “Big Eat, Tiny Price” campaign. With the special, customers can dine for only $5 on dishes such as the new Pizza Stuffed Rolls and the P’Zone Pizza. “We needed to have a low price-point entry into the marketplace,” Kraut said. Pizza Hut’s online customers spend, on average, $2.50 more than the offline customer. Add-ons and side dishes are very popular with people ordering online.

2. Improving and increasing menu variety: Pizza Hut’s marketing organization seeks to stimulate the market every four to six weeks. A lot of times that means introducing new menu items. It has been rolling out new locations of its Wing Street store and has seen favorable results. Kraut said Pizza Hut expects its wing business to double in the next two years.

In addition to wings, Pizza Hut has made a play for pasta, as well. “We like to stand for America’s favorite foods,” Kraut said. Pizza Hut found a strong correlation with those that eat pizza and those who eat pasta. People who eat pizza four times a month, tend to eat pasta on a regular basis, as well, he said.

3. Lead in access: “Pizza Hut has been early and often to embrace emerging media,” Kraut said. In June, the chain launched an iPhone App, “The killer app for your appetite.” The interactive application allows customers to order pizza there — or by text message. It’s been wildly popular. They are at about 600,000 downloads and currently hold the #2 spot

(behind Starbucks) in lifestyle applications on the AppStore. How does this translate into more business? Pizza Hut sees 30 percent of e-commerce sales coming through the iPhone. Kraut said as the company explores other mobile platforms, he anticipates that mobile will continue on the path of being a strong channel for customers.

4. Get in the new media conversation Pizza Hut is increasingly embracing emerging media through areas such as viral video. Although it’s difficult to measure, he said customers can expect more videos like the one below — A spoof of a commercial actor flipping out.

The company made news early this summer with its search for a Twintern – an intern whose main responsibility would be to create a Twitter presence and alert the pizza chain on what’s happening on the social Web. Pizza Hut was so pleased with the Twintern’s performance that it offered her a full-time position. Now the search is back on — this time trying to create a title for the Twintern’s full-time position.

Kraut said that Pizza Hut’s Web sales continue to grow. In a few weeks it will launch a new Web site. Its e-commerce platform is unique in that it offers customers recommendations for products they might like. It also, Kraut said, is the only pizza site to remember customers upon repeat visits. What’s the impact of new media on the in-store Pizza Hut experience? Kraut said he reckons it positively affects it, although he doesn’t have the stats to back it up.

CRM Sub Processes

If you're talking about the Sub process action within the Workflow manager... No, they are not stored procedures they allow you to have one workflow rule call another (manual) workflow rule. This is actually quite useful, as it can greatly reduce coding on complicated rules, provide for reusability, and even allow for recursive workflow rules (which allow you to, for example, always send an email every time a Case priority is set to 'critical')

This is the start of a good method to use for assigning leads to different people. The advantage of using sub-processes are, for example, if you're telesales people ever change territories or leave their job (unlikely, I know, but bear with me), then you only have to modify ONEline in one workflow rule. (And if you change the title of it as well, then every place that rule is execs, that rule will change to reflect that new title as well. I have over 20 manual lead rules to handle the territory assignment, and I've structured it so that

a) when a new lead is imported, it will automatically assign it to a userb) A user can manually override that assignment either modifying the field directly, or,

more simply, by running the manual process using the Action menu

c) A user can manually run a process to see what territory the system thinks it should belong to have fun, Workflow Rules! (Once you get the hang of manual rules, and using Wait for conditions on the Create Event)

CRM organization culture

Linking organizational culture to CRMA number of academic studies have examineed the links between some elements ofOrganizational culture and CRM outcomes. Starkey and Woodcock (2002) show thatOrganizations that are less customer-focused are more likely to have inferior salesperformance. Campbell (2003) and Wilson, Daniel, and McDonald (2002) recognize the Important contribution that customer-focused and cross-functional teams can make to the creation of the deeper customer-related knowledge on which CRM success is based.Campbell (2003) cites an appropriate reward structure as a key factor in the development of that deeper insight. Kristofferson and Singh (2004) and Wilson et al. (2002) find a link between CRM success and employee support within customer-facing departments. Curry and Koloa (2004) identify customer focus, participation, and teamwork as important cultural issues influencing CRM outcomes. Reynard and Chugh (2003) suggest that empowering employees to excel at customer service and ensuring their job security also contribute to CRM success. This CRM-specific research is supplemented by broader organizational research. Galbreath and Rogers (1999) argue that an organizational culture that promotes an atmosphere of risk-taking can create a climate of confidence in which employees feel 3 empowered to act in the best interests of customers. Research into market orientation suggestThat the presence of an innovative and entrepreneurial culture is strongly associated with excellent business performance (Deshpandé 1999). Collectively, these reports suggest that an organizational culture that puts more importance on customer-focused behaviors, cross functional teams, performance-based rewards, adaptive and responsive attitudes to change, and a higher degree of risk taking and innovation, is likely to contribute to successful CRM system implementations. These attributes are strongly associated with the Adhocracy culture.Managers in adhocracies are favorably inclined towards collaborative communication (Brown and Starkey 1994). Moorman (1995) found that organizations with an adhocracy culture tend to stress participation, teamwork, and cohesiveness, which leads to greater cooperation among organizational members. We therefore present our first hypothesis.H1: Organizational cultures high in Adhocracy achieve the best CRM outcomes.

Measuring CRM outcomesWe measured CRM outcomes using a balanced scorecard, based on the original framework of Kaplan and Norton (1992). Kim, Sum, and Hwang (2003) have also deployed a similar approach

in their CRM research. Following a literature review, we identified 16 metrics that are widely deployed to measure the outcomes of CRM system implementations. On the basis of expert judgment, each metric was assigned to one of the four balanced scorecard measurement categories – finance, customer, process, and people. In our research, the financial metrics used to assess CRM outcomes include sales revenues, share of customer spending (share of wallet), average profit per customer, and customer acquisition cost. The customer-related metrics include customer retention rate, customer satisfaction level, numbers of new customers acquired, and response rate to marketing campaigns. The processMetrics include the number of sales leads generated, the percentage of sales leads converted to sales, organizational response time to customer inquiries, and the time to resolve customer complaints. The people metrics assess the satisfaction, productivity, retention, and training of employees. Respondents to our survey were asked to self-report whether there had been any improvement in performance against these metrics following the CRM system implementation.

Research designSurvey research was undertaken. Named individuals in 1,449 public and private-sector organizations were invited to participate, and sent a six-page questionnaire, cover letter, and reply paid envelope. Dun & Bradstreet information services provided the contact list of individuals holding management positions in sales, marketing, customer service, and information technology in 11 industries. The instrument contained questions on organizational culture, CRM outcomes, and the a number of additional hypothesized moderating variables - ease of using the CRM system, compatibility of the CRM system with existing technologies, competitive intensity, and market turbulence. After sending a second reminder by surface mail and a follow-up phone call encouraging people to participate, we achieved 134 questionnaires (9.25% response rate). After removing responses from companies having no CRM system in place, a total of 101 questionnaires remained for analysis. We had anticipated a low response rate, as only organizations with a CRM systemin place are eligible to participate, and according to Gartner Inc.

Loyalty programs of Pizza Hut

Pizza Hut uses loyalty programs depending on various types of customers and their needs. It offers various discount schemes to customers that visit regularly by providing discount coupons. While these discount coupons are for individual customers, there are also offers for corporate lunches, birthday parties, kitty parties etc. In light of the reasons mentioned above these loyalty programs naturally help increase the net sales of the company. The idea is to provide good customer service in order to create customer loyalty.

The emergence of these loyalty programs is because of customer’s tendency to switch to other pizza places such as Dominos, Papa Jones etc as well as other substitutes in search for quality product, service and value.

Pizza Hut had to come up with loyalty programs that were compelling to customers and also cost-effective. The company gathered insight to identify customer behavior patterns. It interviewed Pizza Hut customers, reviewed existing research, built an analytic data mart based

upon thousands of customers and performed a customer potential analysis. But it is difficult to employ single loyalty program for all the customers. Pizza Hut or any other company for that matter needs to first find out the needs of customers in various segments and then work accordingly.

Customers that visit Pizza Hut can be segmented into following categories:

Best customers. Customers with potential to become best customers. Customers who switch often or those who simply have low frequency.

For best or regular customers the benefits are through various discount coupons which they receive every time they walk into any of the Pizza Hut outlets across the country. The idea is to make them feel special and to make sure that they are getting proper value for money. They are also encouraged to organize parties, corporate lunches, kitty parties for women and birthday parties for kids. Pizza Hut provides a floor space where these parties are organized and serve food depending upon the requirements. Food is mostly with Pizza and other side dishes along with desserts. To communicate the loyalty program, Pizza Hut uses direct mail, text messages, e-mail, Web sites and in-store promotions. Pizza Hut also issues VIP cards to its best customers which they can use to avail further discounts.

Pizza Hut has also introduced Gift Cards for various occasions. These Gift Cards are like any other prepaid cards that can be used for goods or services offered by the Pizza Hut. These cards can be charged with any denomination starting from Rs 250 to Rs 5000. Once charged, customers can gift them to their friends and family members. These Gift Cards can also be personalized with personal notes and wishes. Currently these Gift Cards are available only in Bangalore and Mumbai but they will be launched in other cities as well. At the corporate level these cards can be given to employees in recognition of their work. It can also be used by marketing professional in different firms as a promotional give-away along with products.

Pizza Hut also let customers to earn rewards every time they dine at any Pizza Hut restaurant. These Celebration Reward Cards can be asked from the server at the Pizza Hut restaurant and can be later used to avail discounts accordingly.

Birthday parties for kids can be organized at Pizza Hut restaurants. Customers can choose from available themes for organizing these parties. These parties are backed by a friendly host along with various other attractions such as games and gifts. Customers can also design and send invitations through them.

Corporate lunches can also be organized where customers can have a lunch and discuss about issues with their clients and colleagues.

For customers that are identified as potential best customers and for customers with low frequency the loyalty program basically revolve around distribution of discount coupons. They are also made aware of various parties that can be organized for small occasional gatherings. So

that they can experience the offerings along with family and friends who may visit the restaurant in future.

In order to further improve on the services being offered to customers and to tackle its existing competitors, Pizza Hut has come up with Pizza Hut Delivery Outlets (PHD) throughout various cities across India. These outlets mainly concentrate on delivery of pizzas to its customers on time. This is one area in which Dominos has done really well and is known for its thirty minutes delivery span. They also make sure that hot Pizzas are delivered to customers on time and if in case this is assurance is not met they get the pizza for free.

In order to tap customers in lower income groups, they have come up with lower price pizzas so that it can generate more revenue. In earlier days of its launch the Pizzas were mostly for middle and high income group customers but with the launch of lower priced pizzas it has increased its customer base.

They have also come up with combo meals to give customers a wholesome lunch or dinner experience. These combo meals include pastas, other side dishes and a variety of desserts to choose from.

Customer feedback programs were put into place in order to measure the customer experience and also to uncover opportunities so, that the issues of the customers are addressed properly and they are persuaded to visit often.

Pizza Hut's program is a success for both its best customers and other customers as well.

Privacy Policy

PIZZA HUT takes all measures necessary to protect the personal data of our website’s

visitors and users, both when browsing and when entering restricted access area for

authorized users/subscribers to the electronic ordering service, in accordance with Greek,

Community and international law.

PIZZA HUT does not receive any data from visitors and users of our web pages and areas of

our website to which there is free access, and guarantees that the software that it uses does not

automatically collect visitors’ data. The company only receives data provided by registered

members when they register.

PIZZA HUT does not guarantee that its website will operate uninterruptedly and without

faults. Nor does it bear any responsibility for difficulties or interruption of access for technical

reasons or for problems affecting or suspending the operation of the electronic ordering

service for a reasonable period of time.

PIZZA HUT respects the confidentiality of your personal data and aims to protect it. The

protection of personal data is governed by the principles of Law 2472/97 as amended by Law

3471/2006 on the protection of personal data. Our policy and how it affects users of our

website is shown below.

Personal data 

PIZZA HUT does not collect personal data (PD) (e.g. first name, surname, address, e-mail

address, telephone number, profession, etc.) unless you provide it to us voluntarily. You will

be asked for PD if you want to use certain pages of our website, specifically:  ON-LINE

orders. 

Your personal data were given to PIZZA HUT with your consent and you were informed that

they might be subject to personal data processing in accordance with Law 2472/1997 as

amended by Law 3471/2006. However, you retain the right to access your personal data at

any time in order to request and receive, without delay, the purpose for which data are

processed and information about the recipients of data in a manner which is clear and easy to

understand. On the basis of Articles 11-13 of Law 2472/1997, you also have the right to raise

any objections or to refuse permission for the future use of your data. In this case, you are

required to send PIZZA HUT your written refusal, quoting your details in full (first name and

surname, address, photocopy of ID card) at: Food Plus, 80 Eth. Antistaseos Str, 153 44,

Gerakas (Marketing Department).

PIZZA HUT does not hold or process any other data (including sensitive data as cited in

Article 2, paragraph b of Law 2472/1997).

If you wish, PIZZA HUT may use PD provided on-line to contact you and send you PIZZA

HUT offers and other information. PIZZA HUT does not share this information with third

parties.

Security 

We have taken measures to protect your data. No information about you leaves this company.

Only PIZZA HUT employees who need this information to carry out a particular task have

access to personal data. Our employees have to use secret passwords to access this

information. In addition, the servers where personal data are stored are guarded in a secure

facility. The Website is governed by security measures to protect against loss, misuse and

corruption of information under PIZZA HUT’s control.

PIZZA HUT may use some of the personal data in its database. This data might be subject to

personal data processing in accordance with Law 2472/1997 as amended by Law 3471/2006.

Data are processed for the purpose of promoting and publicising PIZZA HUT’s products and

services, and for statistical purposes. The company may disclose these data to associates for

advertising or statistical purposes and only for uses concerning PIZZA HUT products or

services.

Announcement of changes 

If PIZZA HUT’s policy on the protection of personal data alters, changes will be recorded on

this page. Please check it regularly.

Acceptance of our policy 

Use of the website constitutes acceptance of the terms of PIZZA HUT’s policy on the

protection of personal data. If you do not agree with this policy, please avoid using the

Website. Continued use of the Website after the announcement of changes to PIZZA HUT’s

policy on the protection of personal data will be taken as acceptance of the changes.

Customer Feedback program

The secret to understanding customers' needs, wants and concerns is making the most of customer feedback. That means not only collecting feedback, but managing and acting upon that feedback to improve your products and services.

Customer feedback comes from a growing number of channels, including in-person, phone, comment cards, surveys, email, Web, social networking, mobile devices, and more. In addition, a number of individuals and departments within your company are collecting customer feedback, and in a variety of formats. For example, marketing may be conducting Web-based surveys, product development may be conducting focus groups, the contact centre may be collecting customer feedback from the support line.

The challenge this creates is you do not always know what feedback is being captured, who is capturing it, where it is being stored and who is responsible for following up on it. This also makes it difficult to use this information to improve customer relationships.

Thus, to ensure your own company's success in setting up and managing an effective Voice-of-the-Customer feedback program, here are nine ways to help you succeed at managing customer feedback.

1. Have well-defined goals and objectives: Before starting, know what business objectives are at stake, why you are collecting the data and how your company is will use it to make decisions. Also, consider the reports you will need and who within your organization needs access to that information.

2. Get executive buy-in and internal support: Work with your executive team to communicate and share customer feedback and VOC program goals and objectives with all employees. Keep

VOC programs top-of-mind with executives and employees by including metrics in executive dashboards and sharing positive customer feedback during company meetings.

3. Develop a formal VOC program: Establish a formal VOC program that encourages two-way communication between your company and customers. Once customer communications channels are established, help your company implement formal processes to support feedback data collection and management efforts, including implementing technologies to support a unified VOC program.

4. Collect and manage customer feedback in a centralized system: Having multiple feedback systems in separate databases is cumbersome and leads to duplication of effort. Companies now have access to technology-driven, real-time Voice of the Customer (VOC) feedback programs. These solutions allow businesses to continually collect customer and employee feedback through multiple channels into a central database for analysis and immediate action.

5. Become a customer advocate throughout the feedback process: Be in a position to rapidly respond to customer feedback. Keep customers informed about the ongoing status of their issues and requests. Let customers know when your company uses one of their suggestions. Help your organization resolve chronic customer complaints and concerns. Track, measure and monitor customer feedback response times and continually work to improve them.

6. Communicate and share customer feedback with others: Quickly distribute real-time customer feedback and share reports and survey data findings with others in your organization — from the c-suite to managers and employees. Openly share actionable insights with employees and conduct post-mortem meetings to discuss what did and did not work as well as what is needed to improve your VOC program in the future.

7. Collect real-time, ongoing feedback: To build strong, lasting and engaging relationships with customers, gather and respond to feedback in real-time. To accomplish this, make it easy for customers to submit feedback at every interaction point and regularly monitor customer needs and concerns.

8. Integrate customer feedback into the business: Be sure to work with other departments to ensure that their customer feedback is incorporated into the company's strategic goals. For example, sort through open-ended comments to see whether a customer has complimented an individual employee. Then, make sure that the employee is recognized for providing positive customer service.

9. Tie customer feedback programs to business outcomes: Measure and monitor customer-related metrics such as customer retention, number of products purchased, likelihood to recommend the company's products or services, likelihood to purchase again, etc. You can also benchmark your program against other industry leaders. These measurements will demonstrate how your feedback program is positively impacting the organization.

Gathering customer feedback isn't just about finding out and addressing customer concerns — it's about gaining a solid understanding of customer needs, wants and issues. By consolidating all

feedback data into a single centralized system and using that system across the organization, you can gain valuable insights into what customers need, want and value most, as well as identify important trends and patterns in the data that contributes to business success.

Customer Satisfaction

This depends on your goals, and what exactly you're trying to find out or improve. Here are a few common areas that many business owners address with customer satisfaction surveys.

Product/service performance. Your local spa might survey clients who haven't used their massage services for months to identify what went wrong, and what staff can do to win clients back. A customer feedback survey can also be a good tool to measure employee performance and how each person's role is tied to client satisfaction.

Product feedback. A camping goods company launching a new product line might create an online survey to send to customers who've just made a purchase. Did that new and revolutionary tent fabric weather the elements? The results could reveal valuable insights on how to improve product features or address design flaws.

New product development. A beverage company might send out a customer satisfaction survey to create or launch new formulations and leverage new opportunities. Should they look into launching health drinks? Does that mean sugar-free or low calorie? Survey data can reveal what customers are likely to guzzle down (or not).

Customer loyalty. Surveys can help you discover your most loyal customers and influencers. Brand champions, power users, brand loyalists, brand heroes. No matter what you call them, they're your answer to knowing exactly what you're doing right, what to keep doing, and what to start doing. Showing customers that you're listening goes a long way.

Keeping in touch. Customer satisfaction surveys are a great tool to drive regular communication between you and your customers. Ask them how they're doing, what suggestions they might have, and consider offering loyal customers swag or rewards for answering your surveys.

Market research. Want to grow a new service area? Get to know potential target markets by first sending out an online survey to find out more about demographics, such as age, gender, income, hobbies, etc.

Establish performance goals. Now that you've got all of this great actionable data, you need to make sure feedback is implemented. Use customer feedback surveys to reach back out to customers and measure your progress over regular periods of time. Leverage what you've learned from this valuable data to rake in revenue and improve customer and employee satisfaction and loyalty.

Management reporting. Customer satisfaction survey data can also help managers identify key drivers and metrics they should track across departments and roles.

Measuring customer satisfaction is a relatively new concept to many companies that have been focused exclusively on income statements and balance sheets. Companies now recognize that the

new global economy has changed things forever. Increased competition, crowded markets with little product differentiation and years of continual sales growth followed by two decades of flattened sales curves have indicated to today's sharp competitors that their focus must change.

Competitors that are prospering in the new global economy recognize that meas-uring customer satisfaction is key. Only by doing so can they hold on to the customers they have and understand how to better attract new customers. The competitors who will be successful recognize that customer satisfaction is a critical strategic weapon that can bring increased market share and increased profits.

The problem companies face, however, is exactly how to do all of this and do it well. They need to understand how to quantify, measure and track customer satisfaction. Without a clear and accurate sense of what needs to be measured and how to collect, analyze and use the data as a strategic weapon to drive the business, no firm can be effective in this new business climate. Plans constructed using customer satisfaction research results can be designed to target customers and processes that are most able to extend profits.

Too many companies rely on outdated and unreliable measures of customer satisfaction. They watch sales volume. They listen to sales reps describing their customers' states of mind. They track and count the frequency of complaints. And they watch aging accounts receivable reports, recognizing that unhappy customers pay as late as possible--if at all. While these approaches are not completely without value, they are no substitute for a valid, well-designed customer satisfaction surveying program.

It's no surprise to find that market leaders differ from the rest of the industry in that they're designed to hear the voice of the customer and achieve customer satisfaction. In these companies:

Marketing and sales employees are primarily responsible for designing (with customer input) customer satisfaction surveying programs, questionnaires and focus groups.

Top management and marketing divisions champion the programs. Corporate evaluations include not only their own customer satisfaction ratings but also

those of their competitors. Satisfaction results are made available to all employees. Customers are informed about changes brought about as the direct result of listening to

their needs. Internal and external quality measures are often tied together. Customer satisfaction is incorporated into the strategic focus of the company via the

mission statement. Stakeholder compensation is tied directly to the customer satisfaction surveying program. A concentrated effort is made to relate the customer satisfaction measurement results to

internal process metrics.