KFC managed to increase ROAS by 453% with Rocket Lab
KFC, with its food app, teamed up with Rocket Lab to improve ROAS through activation and engagement strategies.
KFC, the famous restaurant chain known for its delicious fried chicken, had the goal of increasing transactions made through its mobile application in several Latin American countries. In addition, they were looking to improve the ROAS within the app, to maximize the efficiency of their advertising campaigns. The main challenge was to attract more users to the application, maintain their interest, and retain those who had already made previous purchases.
Goals of KFC
KFC's main goal was to keep users shopping in the app and increase the number of transactions. And as a secondary objective to improve the ROAS within the app.
KFC teamed up with Rocket Lab to develop activation and engagement strategies. Over a period of three months (March, April, and May 2023), Rocket Lab implemented a series of effective strategies using its proprietary technology called "Space".
The activation strategy focused on those users who had installed the application but had not yet made any transactions. For these users, personalized campaigns were created that incentivized them to make a purchase and experience the delicious KFC fried chicken.
On the other hand, in the engagement phase, users who had made previous purchases were identified, but who had not done so in more than four days. In order to retain these customers, specific campaigns were designed that offered them promotions, discounts, and relevant content to motivate them to continue using app and make new purchases.
Achieved an impressive 453% return on advertising investment (ROAS) increase in just three months. This means that every dollar spent on advertising generated a significantly higher return in revenue for KFC.
Thanks to activation and engagement strategies, in-app purchases skyrocketed by a staggering 946%. Users responded positively to the personalized campaigns and it resulted in a significant increase in transactions.
Purchasing Cost of Acquisition (CAC) decreased by 64%, meaning KFC was able to acquire new customers more efficiently and profitably.
"With Rocket Lab, we have found a strategic partner that has not only supported us in increasing the visibility of the KFC App but has also guided us in the iteration and optimization of the App itself. Rocket Lab has a very professional team who knows what he is doing, generates recommendations that move the sales needle, and is on the lookout on a day-to-day basis without letting go of our KPIs and objectives".
Ernesto Hernández - Advertising & Digital Comms Manager KFC