Case Study II

Go through the case study and answer the questions that follow.

California Pizza Kitchen (CPK) knows how difficult it is to engage customers and bring them back. The Los Angeles-based casual-dining chain, which has more than 200 locations throughout the U.S., wanted to foster loyalty among tech-savvy consumers and discriminating foodies. These customers prefer using technologies like social media and mobile devices to secure discounts. CPK came to recognize its traditional TV and radio advertising wouldn't cut it with a customer base that is 80% mobile; these customers also like fresh ingredients and new menu items. So, CPK modernized its digital strategy and made over its image. "We have to change when the guest is changing," said Ashley Ceraolo, senior vice president of marketing at CPK. "We're trying to be where the guest is." The company's Pizza Dough Rewards customer loyalty program is designed to entice regular customers to become more regular patrons and bring back lapsed customers. CPK also wanted to enhance guest experiences with tools like its loyalty program mobile app and social media. "We knew that [mobile] was going to be our primary way to communicate with guests," Ceraolo said. "So, that's our primary focus. Here's where our guest is, and we want to ... get their attention." Roughly 70% of its 1.7 million loyalty members use the mobile app from Paytronix Systems Inc. CPK redesigned its website with responsive design, so customers can better navigate the loyalty program with options similar to those available on the mobile app. To differentiate themselves among consumers, companies also need to address customer experiences that are traditionally fragmented. That can include blending digital with physical shopping experiences. According to a 2015 Deloitte research report, digital technologies -- including computers, tablets, smartphones and wearables -- influenced 49% of in-store retail sales. With new technologies, such as beacons and wearables, companies can detect a signal from consumers' mobile devices and gather customer data as patrons traverse retail stores or sports venues. Businesses can use data about a customer's location in conjunction with other information to send push notifications about a discount, an abandoned shopping cart online or a possible stadium-seating upgrade. Other companies are using location tracking as a way to engage customers socially. CPK launched a social scavenger hunt known as the Traveling Pizza Dough contest, which rolled out in various cities across the country. In the morning, the company would announce on Twitter in which city the hunt would take place. It provided clues throughout the day as to where customers could find a pizza box that would grant them free pizza for a year. "People were chasing us all over the city," Ceraolo said. When the contest came to Huntington Beach, Calif., the final clue indicated the pizza box was in the vicinity of the beach. "I was sitting on the pier with the Pizza Dough box," Ceraolo said. "I had this man literally running at me. It was an engaging tactic with our guests, but the fact that it required Pizza Dough member registrations also helped increase registrations." In conjunction with its "Take Your Shot -- Go for 3!" marketing campaign during this year's NCAA March Madness basketball tournament, CPK invited lapsed diners to try fan favorites at a discount. Pizza Dough Rewards registrations increased membership in CPK's loyalty program by 15,000 customers. CPK also bridges the physical-digital divide in other ways. It created a marketing campaign in which diners could sample wines from California vineyards -- including the state's oldest winery -- and learn about their histories. As a result, restaurant wine sales increased 155%. "That's the way in moving forward and interacting with our guests," Ceraolo said. Future plans, she said, also include integrating the CPK loyalty program with other capabilities, such as a mobile-wallet program

Questions:

1. 1. Provide a suitable caption to the case and label it.
2. 2. Highlight the role of CRM in assisting the Marketing efforts in an Organization
3. 3. Outline the success of this CRM initiative by CPK
4. 4. Should organizations have different methods to deal with Online and Offline Customers?
5. 5. Do you think CRM should also follow segmentation techniques? If so, indicate their advantages and disadvantages.
6. 6. Spell out the role of social media marketing to help with CRM.
7. 7. In case CPK tries to enter into your home country for business, what will be the market entry strategy you would suggest and why?