Pizza Hut Case Study

3564 WordsJan 14, 201315 Pages
Executive Summary Pizza Hut started out as a pizza parlor opened up by two brothers in Topeka, Kansas. Today, the company has restaurants all over the world and its annual sales are in the billions. The growth of the company was due to a good product being delivered at a good price and offering perceived value. The company has adjusted to new entrants into the market and has managed to stay ahead of the competition. The philosophy for growth is simple: Take care of the customer, and the customer will take care of you. Pizza hut focused on providing good customer service in order to create customer loyalty. In return, the customer will return and more importantly, the customer will become an advocate. Customer feedback programs were…show more content…
In 1995, Pizza Hut began two customer satisfaction programs. A 1-800 number customer hotline was set up to hear from customers who visited dine in restaurants. Customers would receive the hotline number on the back of receipts and offer coupons for participating in surveys and also for expressing comments about experiences good or bad. A customer call-back program was put into place to get feedback from customers of Pizza Hut delivery stores. Customers were called back within 36 hours of purchase and asked about satisfaction and room for improvement. (Johnson & Weinstein, 2004) These were implemented to make sure their customers were happy, and always wanted to return. The goal of the company was to create loyalty among its customers. With customers being loyal, they would return again and again. They would also be inclined to recommend the restaurants to friends who would in turn do the same. In order for the strategy to be successful, the customer experience had to paramount, and the information gathered from the surveys put into action to better the process. A bonus plan was put into play for store managers which were tied to the value score received from their stores patrons. This bonus plan forced managers to focus on customer service and the customer experience. Pizza Hut was on to something with the entire plan except, the bonus structure had its flaws. The company found that some store would have high customer service

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