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Pizza Hut Achieves Strong Incremental Growth with Capillary's Lifecycle Marketer Solutions

By leveraging predictive consumer behavioural intelligence and targeted time-axis campaigns, Pizza Hut attains a consistent sales growth of 5 per cent and 12X ROI from customer engagement in the last year


SINGAPORE, October 3, 2013: Capillary Technologies a leading provider of cloud software solutions that help businesses to engage intelligently with customers through mobile, social and in-store channels, today announced that its Multi-Channel Intelligent Customer Engagement solutions are helping Pizza Hut improve profitability and increase store sales. Pizza Hut is the world's largest pizza chain with over 12,500 restaurants across 91 countries. In Singapore, the brand serves over 1.1 million households defined by unique tastes, behaviours and consumption habits.

Pizza Hut uses Capillary's Customer IntelligenceTM solution to incrementally capture, structure and leverage large quantities of customer data. Capillary's unique solution enables the brand to break down its massive customer base into numerous clusters and micro clusters based on expressed characteristics, purchase tendencies and behavioural indicators. Resulting fact-based insights about each customer cluster is fed into Capillary's Lifecycle Marketer> solution where engagement programmes are designed and deployed across thousands of targeted consumer engagement workflows using campaign automation. The combination of solutions allows for seamless communication with Pizza Hut's customers across all channels in-stores, via tele-ordering and through Pizza Hut's online portal, ensuring effective engagement no matter which channels customers choose.

Juliana Lim, Senior Marketing Director for Pizza Hut says, We now run targeted campaigns built with intelligence around customers preferred product categories, typical purchase times and channels of choice. Analytics-driven offers lead to more effective responses amongst both loyal as well as new users and have generated higher sales returns for us. We also leverage on Capillary's automated Lifecycle Marketer programme to preemptively engage every customer to prompt future purchases and retain their loyalty. With better knowledge on our customers, we are able to do a better job on cross-selling and up-selling to customers, increasing returns per loyal customer.

Lifecycle Marketer has created 6,000+ customer behavioral groups for Pizza Hut, empowering the brand to predict future purchases and execute campaigns at preferred times via customer's preferred engagement channels (direct mail, email, text message and more), yielding incremental sales growth across its restaurants and delivery business. As model complexity has evolved over the past year, Pizza Hut has witnessed successive increases in campaign performance, sales and overall customer experience with the brand.

Through Capillary's analytic capabilities, we can now identify our customers responsiveness to different product segments and their repeat purchase tendencies enabling us to better design our customer engagement and product-launch campaigns, driving incremental sales and better marketing ROI for our business, added Lim.

In comparison to Pizza Hut's former bulk promotions, automated lifecycle marketing with personalization has yielded:

A 200% jump in average campaign hit rates across customer segments,

A 38% improvement in Pizza Hut's customer retention rate,

A 9% increase in customer visit/purchase frequency in just seven months, and

Up to 6% extra sales generated every month since the program was started.

Within the Asian markets, the restaurant and food delivery businesses are extremely saturated and dominated by a wide variety of organised retail brands plus a plethora of single and independent retail outlets. High discount margins are prevalent, consumers are prone to impulse buys and repeat business is difficult to earn and predict, observes Anant Choubeyy, Vice President and Regional Head, Asia-Pacific for Capillary Technologies.To tackle the increasing competition and difficult economic conditions, we help consumer brands transition from generic marketing campaigns aimed at a wider populations to highly segmented, targeted and personalised campaigns leveraging the best that technology can provide. Pizza Hut is one of our key customers in Singapore, and we look forward to continuing to work together to create better engagement programmes for the brand's customers.

Capillary's fast-growing success in Singapore is due to its ability to bring trade expertise from collaborating with leading global retail brands. Capillary works diligently to demonstrate measurable business outcomes and guarantees impressive returns for each client initiative, leading to long-term working relationships. Capillary's customers typically witness 5-7 per cent increases in sales and 4-6X ROI on margins from their customer engagement investments.

About Capillary Technologies

Capillary offers an Intelligent Customer Engagement platform to retailers and consumer businesses - managing the entire life cycle of customer data from acquisition, analysis, insights and activations. We are the world's leading SaaS provider of end-to-end Multi-Channel Customer Engagement, Big Data, Customer Intelligence, Clienteling, Real-time Loyalty and Social CRM solutions to 150+ enterprise customers - with over 10,000 locations and 75 Million shoppers who interact with our cloud platform. Marquee customers like Marks & Spencer, Pizza Hut, Puma, Benetton, KFC and Courts, have realised as much as a 4-6X ROI from customer engagement across every major channel, including in-store, mobile, online, e-mail, and social by leveraging Capillary's solution.

Present across Asia-Pacific, EMEA and North America, we are the youngest company to win at Marketing Magazine's CRM & Loyalty Agency of the Year Awards 2013. The company has also been named: a Gartner 2013 Cool Vendor, among Harvard Business Review's Pioneers of Reverse Innovation and to Mint WSJ, Bloomberg Businessweek's Hottest Technology Businesses 2013. Capillary is financed by Sequoia Capital, Norwest Venture Partners and Qualcomm Ventures. Visit http://www.capillarytech.com for more details.

Media Contacts
Tony Tan / Pradnyesh Kothar
Havas Worldwide Siren for Capillary
Technologies
+65 6317-6709
tony@siren-communication.com
pradnyesh.kothare@havaswwsiren.com