Case Study
McDonald’s (West & South India) Drives a 40% Increase in Omnichannel Customer Base with Data-driven Marketing
Segment
QSR
Objective
Drive data-driven marketing at scale to increase omnichannel customer base
Product Used
Outcomes
0
%
increase in omnichannel customers
0
%
YoY increase in customers using McDelivery Services
0
million
customer engagement opportunities created across 6 channels
customer engagement opportunities created across 6 channels
The Client
- The Client has a Master Franchisee relationship with McDonald’s Corporation USA and has been the custodian of the brand since its inception in 1996.
- With a customer base totaling about 30 million, McDonald’s is one of the largest QSR chains in the Indian subcontinent
The Challenge
- Improving frequency, enhancing customer experience across digital channels, and driving insights-led marketing campaigns were the three drivers for McDonald’s to look for an integrated customer engagement platform.
- McDonald’s sought a platform that would enable:
- Single customer view
- Deep customer insights
- Omnichannel marketing
The Solution
1 Customer Data Platform (CDP) for Data Integration & Deep Insights
- McDonald’s started by deploying ADA Customer Data Platform to centralize their customer data that was earlier stored across disparate systems.
- This helped the retailer build a unified, omnichannel view of customers across web/app, third-party data (food aggregators), and in-store.
- The CDP’s intelligence layer helped unlock actionable customer insights – behaviors around taste preferences, purchase/menu items affinity, etc.
- This helped create granular customer segments (behavioral, lookalike profiles, and RFM segments) that enabled advanced analytics to refine the overall marketing program efficiency.
- CRM Tags helped track customer behaviors like preferences (veg/non-veg), meal buyers, category affinity, etc.
- The CDP also provided a single and exhaustive dashboard to track CRM performance goals related to Frequency, Retention, and Incremental sales at different levels like segments, business models, regions, etc.
- Armed with deep insights, McDonald’s was able to set the stage for data-driven marketing across channels.
2 Customer Journey Orchestration for Marketing Automation
- After solving the data quality issue and building a Single View of Customers (SVC), McDonald’s deployed ADA’s marketer-friendly Customer Journey Orchestration (CJO) solution to drive data-driven marketing.
- With CJO, the retailer created automated journeys for broadcast campaigns (weekly promotions across app/email) as well as focused CRM objectives such as:
- Increased penetration of McDelivery Services
- Increased frequency
- Retain and win back lapsed customers on online channels.
- McDonald’s orchestrated campaigns on multiple channels, including SMS, Email, Facebook, and WhatsApp.
- CJO provided the ability to run A/B tests to optimize marketing campaigns based on price, messaging, target audience, etc.
- It also provided a Universal Control Group (UCG) to measure incrementality in campaign-driven sales/revenues
3 End-to-end Campaign Management with Marketing Services
- In addition to leveraging tech, McDonald’s worked with ADA’s analytics and campaign specialists to extend its marketing team’s capacity to run campaigns.
- The specialists helped with the setup, execution, tracking, measurement, and reporting for optimizations.
- Moreover, the specialists assisted the CRM team and Operations team with ad-hoc analyses around insights for store operations, CRM program objectives, limited-time offers, menu combos, etc.
- With Marketing Services, McDonald’s set up complex journeys for multiple customer lifecycle scenarios (New Customers, Returning Customers, Lapsed Customers) across channels.
The Results
- Leveraging ADA’s solution stack and managed services, McDonald’s is now able to reach out to their installed base of customers across 6 different channels and has till now created over 44 Million engagement opportunities.
- McDonald’s has executed over 5K campaigns – the volumes of which have grown 12% MoM over a year.
- Specific campaigns focused on win-back / cross-channel acquisition have shown significant results with conversion rates of ~9%.
- With such a precise targeting strategy, the omnichannel customers have increased by over 40% in the last 18 months, with CRM focused campaigns driving 1 in 5 omnichannel users.
- Customers using McDelivery Services (app/website) have also increased by 33% YOY.
The Future
McDonald’s will continue working with ADA to drive digital experience personalization with personalized content and menu recommendations across multiple touchpoints – delivery app, digital kiosks, and even in-store POS.
“The CDP and Customer Journey Orchestration projects were key to McDonald’s India’s digital and data transformation journey, whereby we were able to build capabilities to drive insights-driven marketing across channels. We deeply appreciate the invaluable assistance provided by ADA’s analytics and campaign specialists, who have worked closely with us to develop and optimize our campaigns.”
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