The quick-service restaurant chain used app event, value and retention optimisation on Facebook to lower the cost per install of its mobile app by 28%, while increasing purchases by 12%.
Feeding Aussies for 50 years
KFC landed in Australia in 1968, setting up its first store in Guildford, Sydney. Today it serves over 2 million customers a week across more than 640 restaurants in the country, with the majority of these owned by franchisees. Its KFC – Order On The Go mobile app allows customers to find their nearest KFC, skip the queue and order for pickup, customise their meals and get access to exclusive offers, among other features.
Finding valuable customers
KFC wanted to lower the cost per install of its mobile app while also increasing sales made through it. To do this, it wanted to optimise its Facebook campaign to reach its most active users, as well as those with high retention rates and a high lifetime value.
Perfecting the recipe
KFC ran a range of ads—including video, photo and mobile app ads—developed with agency partner Ogilvy. The ads were designed to both encourage app installs among completely new customers and re-engage with existing users. To improve the performance of its mobile app install campaign, KFC and its agency partner MediaCom experimented with a range of Facebook optimisation tools to test and improve outcomes, including app event optimisation, retention optimisationand value optimisation.
Optimising for app events helps advertisers reach people most likely to perform certain actions, such as registering or making a purchase. Optimising for retention targets those most likely to continue using an app after installation. Optimising for value increases reach among people likely to spend more.
By integrating the Facebook software development kit (SDK) and Facebook Analytics, KFC gained powerful insights about its audience and their purchase journey. It created a Custom Audience of people most active on the KFC app as well as those who made the highest-value purchases. It also created lookalike audiences based on these groups to reach high-value potential customers. KFC also reached people through interest targeting in areas such as gaming.
MediaCom partnered with Facebook to set up ongoing purchase conversion tracking, also using the Facebook SDK. This allowed the agency to adjust optimisation, as well as the overall strategy, throughout the campaign to deliver improved results.
KFC and MediaCom’s ongoing refinement of their Facebook campaign with app event, retention and value optimisation helped decrease the average cost per install while simultaneously increasing overall sales. During 2018, the campaign achieved:
- 2.8X higher return on ad spend
- 28% decrease in cost per install
- 12% increase in conversion rate for in-app purchases among people exposed to the Facebook campaign
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