Advertiser: QSR Stores Sdn Bhd Brand: KFC Creative Agency: - Credits: -
Come 2018, KFC Delivery faced a unique problem. When our ads drove hungry Malaysians to our online delivery platform, often their chosen KFC store couldn’t fulfill the order. Stores had a threshold of supply and the demand was often too high.
Insight, Strategy and the Idea
We discovered: Insight #1: Hangry consumers are the most unforgiving. Our cart abandonment rates were outrageous. Consumers who had started the ordering process dropped off the website, when they learned that their order could not be fulfilled by the neighborhood KFC. They refused to hang around & seek an alternate KFC store (Google Analytics). Insight #2: 20% of our stores contributed to 74% of sales. So, while few of our stores were overwhelmed with online orders, we had a huge number of ‘quiet’ stores which could accommodate online orders but had no requests. The solution? We built the first ever agile ad delivery system to bridge demand and supply. A system that dynamically altered spends and messaging in accordance to the store’s capacity to fulfill orders; all in real time.
Partnering with Google we set up pinpoint targeting and integrated KFC’s store level data to govern our search ad bids & ad copies. We dynamically deprioritized ads in areas where stores were overwhelmed with orders and shifted the media spends to boost stores with the appetite to supply. We also managed consumer expectations by tweaking our ad copies. In areas where stores were unable to fulfill orders, ad copies encouraged in store dining vs online delivery. All this in real time!
Results and Effectiveness
Better Efficiency: For every click that our campaign garnered post the implementation of the agile ad delivery system, there was a 50% drop in cost. Happier customers: Thanks to the customer expectations that we managed, CTR shot up from 24.6% to 35.8%, a benchmark for Google itself!