Pinkberry's holiday loyalty promotion lifts ROI

Pinkberry utilized Paytronix's Target and Control feature to run a successful campaign.

Pinkberry ran a double-points promotion through its loyalty program that successfully delivered a measurable lift and attribution for a new product trial. 

In conjunction with Paytronix and its Paytronix Rewards platform, Pinkberry leveraged its Pinkcard loyalty program to conduct a double points promotion over the Fourth of July weekend in 2016 for its new low-fat milk ice cream, called Pinkbee’s. Utilizing the Paytronix Target and Control feature, the company was able to quantify its overall ROI of the promotion. 

The results showed that both visits and spend were up, compared to the control group. 

“I’ve been doing email campaigns for seven years, but after the Pinkbee’s Double Points promotion, I won’t think of doing a campaign without Target and Control. Before we couldn’t look at the engagement, but with Paytronix we can see through to performance,” said Anne Schultheis, digital marketing manager, Kahala Brands, parent company of Pinkberry. 

Pinkberry, which launched in 2005, was purchased in 2015 by quick-service restaurant holding company Kahala Brands. The company approached Paytronix to help launch its new Pinkbee’s flavor last summer while driving traffic into the stores on a busy summer weekend. The challenge was delivering the right message between July 1 and 4. 

Paytronix’s Data Insights Strategist suggested a targeted double-points offer for PinkCard members. Learning from previous tests that double-points were more effective than $1-off coupons, the team set up the deal and measured incremental visits and spending using the Target and Control feature. 

Interestingly, the team sent out two identical emails, with the same offers and wording aside from the subject line. Subject line A had an open rate of 14.2% and drove a 15.7% lift in spend and a 15.6% frequency increase. But subject line B, with an open rate of 16%, resulted in just a 10.3% lift and a 12.3% frequency increase. 

The results proved that open rate is not a good indication of email performance. In this scenario, the email with the lower open rate delivered more visits and spend than the email with the higher open rate. If the program had used a traditional A/B test, which sends the email with the higher open rate to the target audience, it would not have performed as well.