China Food

With 330 million members, KFC’s community deep cultivation strategy was exposed for the first time!

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explain KFC’s digital process in detail.
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Text: Cai Daqi

Source: internal reference of restaurant owner (ID: cylbnc)

 
In 2021, in the face of the impact of the epidemic, KFC’s takeout and takeout sales accounted for about 60% of KFC’s Restaurant revenue, becoming a strong moat for the brand to resist risks. Digital orders account for about 87% of KFC’s Restaurant revenue.
The bright digital performance makes KFC become the object of learning for many catering people. Therefore, the catering boss interviewed Huang jinshuan, general manager of KFC China, to explain in detail how KFC constructs the powerful moat of digitization.
KFC launched the “thousand towns competition” to vigorously do community operation in the sinking market.
“digitization is open, endless and constantly explored!”
this is the view emphasized by Huang jinshuan, general manager of KFC China, in many interviews. As the first CIO (Chief Information Officer) of Yum China, he fully participated in the construction of KFC digital.

from China’s early e-commerce environment, we can see the first opportunity of catering digitization, and then to the launch and improvement of super app and applet. The digitization process of KFC also confirms his view.
by the end of 2021, KFC has more than 330 million members, and a huge flow pool has been built, reflecting its strong anti risk ability in the turbulent catering environment.
over the past year, KFC has entered many cities and towns, and the expansion space of sinking market is being opened. In terms of digitization, a new digital operation challenge is opened.
the store density is insufficient and the brand is difficult to reach; Thousands of towns and thousands of areas, and the customer group characteristics of each sunken store are very different; Besides reasonable tool operation, how to add human temperature is the sinking dilemma that must be solved.
in October 2021, KFC’s digital construction began to focus on the community operation of sinking market, and joined hands with Tencent smart retail, Launched the “thousand towns competition” “: open the internal competition of community operation in more than 1000 sunken stores in Zhengzhou, Yunnan and Guizhou, compete for the number of new community members, select the winners and receive rewards.
local restaurant managers, on the one hand, use Tencent smart retail related tools, such as group competition, community live broadcast, old and new, to attract potential consumers into the community; on the other hand, launch operation activities with more local characteristics, such as characteristics The limited time discount of new products and the temporary trusteeship of children constantly enlarge the temperature and personalization in the operation of the community, that is, “let people who understand the local do local business”.
‘s finer operation granularity provides KFC with more concrete operation ideas for its sinking market strategy, and also provides a new direction for the digitization process of the whole catering industry: how to implant irreplaceable human temperature while making rational use of operation tools?
to this end, the catering boss participated in a dialogue with Huang jinshuan, general manager of KFC brand, and explained KFC’s digital process in detail, from awareness of infrastructure construction to organizational structure, how to build a strong digital moat step by step. On the other hand, in the face of a sinking market with great potential, how to delegate power to local restaurant managers and open a more warm and personalized community operation is another key point.
internal reference of catering boss: KFC has been exploring digital transformation for a long time. Why can KFC have the cognitive advantage of starting first?
Huang jinshuan: as early as 2013 and 2014, we observed that many Chinese consumers spend hundreds or thousands of yuan in the shopping environment of e-commerce. These are all consumption in daily life. Why not come to KFC and spend dozens of yuan to order or deliver a meal.
so we began to think about how to make it easier for consumers to interact with brands. In 2006, we began to provide home delivery service, with information flow and capital flow. The next thing to do is how to make the service and products into a closed loop.

in 2016, I put forward that everyone has mobile phones. There is no need to queue up to brush their mobile phones. You can order in any corner of the restaurant or not in the restaurant. The consumer experience is very good. But when waiting in line to order, no matter how many people, even for five seconds, you will feel very unhappy. So then we decided to turn on digitization.
internal reference of catering boss: how to understand digitization? How many stages can KFC’s digital construction be divided into?
Huang jinshuan: digitization is endless. We define digitization as having several elements:
the first is concept. The whole digitization is open, which means learning from each other, cooperating with each other and promoting each other to move towards a better direction of work and life. This open process can absorb more different ideas. How to share with an open concept and find a good platform is the main starting point of digitization.
the second is technology. Hardware technology should be very good, convenient and cheap. For example, the mobile phones and computers we are using can connect the messages between the central end and the client. This is technology.
finally, there should be marketing to communicate products and services through all aspects, so that the brand can reach consumers and know what consumers want. Brands can design products and services in a digital way according to the needs of consumers.
what is KFC doing?
it is important to educate our employees about digitalization first. Restaurants have customers, marketing has customers, everyone has customers, both internal and external. The first thing we should have is, what exactly do customers need to digitize?
second, build ability. After digitalization, what infrastructure should I do, how to set up these organizations, and how to recruit appropriate talents. With these tools, products and services can be exported through digital tools.
more importantly, digitization is not stagnant or phased. Therefore, we should have an open concept and contact new ones at any time, not only in the catering industry. In fact, many digital attempts in the industry can be learned, to see what good things can be introduced outside, to see what consumers want, and to find out what part of our ability we lack. Therefore, it is difficult to present in stages or plans. They are all in continuous evolution and progress.
internal reference of catering boss: when KFC started the digital process, what adjustments have been made in the organizational structure?
Huang jinshuan: at first, the “big data team” under the IT department began to analyze data. Subsequently, a full-time digital team was established in the marketing department. When digitization gradually becomes a part of our work and life, digital organizations are put into various brands. All departments need to reach consumers or make work more efficient through digitization.
later slowly found that almost everyone’s work is inseparable from digitization. In this case, everyone needs to have this concept and digital basic knowledge.
digitalization can’t just be superficial.
catering boss internal reference: how can digitalization help KFC maintain a better development trend? How to improve the competitiveness of catering brands?
Huang jinshuan: the impact of digitization on the catering industry is very positive. In the past, a brand had only 5 or 10 stores, and it didn’t have so much money, channels or exposure opportunities. Now through digitization, even if he doesn’t make food for delivery, he can set up points to sell things on a third-party platform, and the exposure can be enhanced through digitization.
but digitization is not just surface, exposure opportunities are only part of it. We need to understand the scale of the whole logistics system and make full use of the advantages of the whole logistics system. Otherwise, only a few restaurants have invested so much in digital infrastructure that there is no way to recycle. Maybe they have to make adjustments before they are finished.
digitization has advantages for large, medium and small brands, but for brands such as KFC, more importantly, through digitization, we can further understand the needs of consumers, how to do a good job in products, how to do a good job in services, and how to tell consumers the information the brand wants to communicate quickly and to the point. This is a great advantage of digitization for brands. “Thousand town plan”:
makes temperature and tools more effective, combined with
catering boss’s internal participation: KFC will have new store opening goals in the new year. From a digital perspective, is offline stores important or online stores more important?
Huang jinshuan: when consumers see the sign of “KFC” and see that the stores are clean and bright, the employees are neatly dressed in uniforms, the operation is very standardized, and the food is safely finished and sent to your hand or to your home, which is different from what they do in the factory. Even if the factory is done well, consumers can’t see it and won’t have much confidence. That’s why we put so much energy into the construction of KFC.
at the same time, online stores are also very important. This is our touch. How can we show offline things to consumers more simply and clearly online, and how can we easily order on the ground.
the two complement each other. Building a perfect online store can enhance brand influence, improve the expansion speed and scale of offline stores. When there is no way to match online and offline stores, customers can’t get to the store, or the delivery range is far away, so there is no way to ensure the temperature and quality of meals.
catering boss internal reference: what is the significance of community marketing to KFC?
Huang jinshuan: wechat community marketing has given us great inspiration. KFC has been doing CRM (customer management system) for many years and has more than 300 million members. It can reach consumers quickly and effectively, but it can be more warm.
through wechat community marketing, we let each restaurant manager build a group, no matter one, two, three or more, we hope it is a group with temperature. The so-called temperature means that restaurant managers can have different choices for products, and can also have personalized interaction with consumers in the group. More importantly,
is a concept of community. For example, if the store is in the center of Shanghai, it will not attract consumers in Fengxian District to join the group. Most of the people who join the group are around your restaurant. At the beginning, relevant discounts may be offered to attract customers to the store. However, with long-term discounts, consumers will be tired, and there is no way to replace the temperature.
when the weather is cold, the restaurant manager gives the products to consumers and says, “this cup of warm soybean milk is for you. I wish you a happy day”. That sentence can impress many consumers. These things can be done by KFC. When they are authorized to do so, the resonance of this interaction will be very large.
through our large number of restaurant managers and wechat’s community marketing, the combination of online and offline has achieved very good results. Temperature and personalization are social

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