Papa John’s Ramps Up Gift Card Marketing
Papa John’s is using the holidays as a platform for a major relaunch of its gift card. The campaign focuses on a push to drive overall sales and bring in new customers.
In-store displays promoting the Papa Card began appearing last month in the chain’s 2,600 restaurants, including stand-up displays, window clings and counter mats, said Sean Muldoon, vice president partnership development for Papa John’s.
An e-mail to some of the company’s “millions” of opt-in subscribers features a banner ad that links to a dedicated landing page for the card. The ad details the three channels where the cards can be purchased: at the company’s restaurants, at PapaJohns.com and at more than 18,000 retailers nationwide.
About 80% of those retailers were brought onboard in November as part of an aggressive effort to drive new customers through third-party relationships. The roster of partners includes Wal-Mart, CVS, Kroger, Office Depot, Coinstar and Winn-Dixie.
“Around the holiday season, people are gifting these cards,” Muldoon said. “A customer might experience us for the first time, so we think there is a tremendous amount of value.”
In addition, the tops of 15 million pizza boxes will carry ads for the card during the holidays. Papa John’s average sale is higher online, thus the push to drive online revenue, Muldoon said.
“The theme of the holidays is, give the gift that really delivers, to play off the pizza-delivery,” he said. “There is a convenience angle there for the person who receives it as a gift to order online and never leave the house.”
A more than 250,000-piece direct mail campaign targeted high-frequency customers, as well as affluent individuals with children. The two “clusters” were identified through a recent database segmentation effort, Muldoon said.
He said the gift card campaign is a “significant investment.”
“We are doing everything we can to drive our online business,” Muldoon said.
Papa John’s is also tapping partners with programs that play up the Papa Card as an incentive.
A promotion at PapaJohns.com features a two-week free trial at Blockbuster and a $10 Papa Card. Papa John’s has been running a Blockbuster 30-day-free trial all year, but on Nov. 13 added the card as an incentive.
“We’re trying to create these partner programs that enhance customer value,” Muldoon said. “But in addition we’re getting these Papa Cards in their hands and conditioning them to use them.”
A similar deal was also struck in November where customers could get a $20 Papa Card and a free DVR with a new subscription to TiVo.
Next year, the pizza maker plans to further enhance the gift card program, providing customers with the ability to reload their cards online, which should improve frequency, Muldoon said. The card will also become an online menu item. When customers place a delivery pizza order online and also order a card, the card will arrive with the pizza at the customer’s home.
“Where else will you be able to do your gift shopping and take care of dinner online and have both delivered?” he said.
The Papa Card first launched in 2003. It is available is $5 increments from $10 to $100.
