QSRB’s accelerated digital transformation establishes a strong foundation in enhancing and understanding customer data.
IN LINE with the vision to become a leading food technology company, QSR Brands (M) Holdings Bhd (QSRB) has long embraced digitalisation in its roadmap to elevate its brand experience.
Since 2020, QSRB has accelerated its digital transformation journey to provide digital first brand experience for its customers whilst optimising its restaurant efficiencies.
Driving digital capabilities
This effort established a strong foundation in enhancing and understanding customer data, supported by improved omni-channel touchpoints, refined point-of-sale (POS) systems, and facilitated brand accessibility through e-commerce platforms as well as mobile applications, web and WhatsApp ordering.
“We laid the groundwork for its success in today’s market, enabling the company to navigate through the Covid-19 pandemic and the subsequent post-pandemic period with minimal disruptions”, said QSRB chief executive officer and managing director Nehchal Khanna.
Today, KFC Malaysia offers consumers the convenience of placing orders using self-serve restaurant kiosks, as well as online through the KFC app and web.
The app offers practical features, including a strong loyalty programme and digital vouchers.
Similarly, Pizza Hut customers can place their orders using self-serve QR codes at the restaurants, the Pizza Hut app, website and WhatsApp.
The implementation of advanced technologies such as artificial intelligence (AI) and machine learning, utilising a combination of off-the-shelf and custom digital solutions across the group, enabled accurate prediction through the collection and modelling of data.
This led to more informed decisions and quicker adaptation to changing market demands.
This included QSRB’s own delivery service and partnerships with third-party food aggregators, investing in backend infrastructure like the API and delivery management system.
“From 2020 to 2023, we observed an average annual increase of 15% in mobile app monthly active users for KFC Malaysia, and a 50% increase for Pizza Hut Malaysia,” Nehchal added.
“As a result of this programme’s success, digital and online channels now account for more than 50% of annual revenues for both KFC Malaysia and Pizza Hut in Malaysia.”
QSRB’s customer data platform
One of QSRB’s core values is “customer first”, which underscores the commitment to understanding and exceeding customer expectations.
“From the start, QSRB focused on developing a differentiated customer data platform (CDP) that is critical to acquiring, organising as well as for strategic analysis and understanding of its customers to uphold the core value of “customer first”, said chief data officer George Chua.
Chua says that QSRB focused on developing a differentiated data platform that is critical to understand its customers.
The three technical capabilities utilised can be summarised as:
1. Unification of customer information: The use of identity resolution to merge data from various sources, to create a 360-degree view of the customer based on primary identifiers like mobile numbers.
2. Analysis of customer behaviour: Constructing a 360-degree view and the use of factor analysis and predictive modelling to understand and predict behaviours such as complaints, purchases, and loyalty.
3. Personalised customer experience: Utilising past and future behaviour predictions to tailor experiences and orchestrate customer journeys automatically based on their behavioural signals.
QSRB knew that if CDP was to give it a competitive advantage, it had to approach the initiative in a way that differentiates itself.
Transaction Velocity Framework
QSRB recognises that industry leadership requires a strong focus on customers.
To this end, the group has developed a framework called the Transaction Velocity Framework, which identifies key factors for driving transactions and achieving sustainable sales growth.
Within this framework, expanding new customer segments and maintaining relevance to both existing and younger audiences necessitates a comprehensive understanding of individual customers’ needs, desires, interests and lifestyle attributes.
By organising customer data and having differentiated personalised marketing strategies have been implemented.
KFC and Pizza Hut now target different segments through product innovations, limited-time offers, collaborations, value deals, loyalty programmes and varied channel campaigns.
Notable successes include the Kepci concert, Spicy KFC Mala Series, Pizza Hut Genshin and Garfield collaborations, Melts Burger and Chessy Buldark Series. These campaigns continue to significantly increase conversion rates.
Building store operations digital touchpoints
A complete digital transformation includes improving the operational efficiency of a network of more than 1,000 restaurant outlets to enhance the customer experience.
At KFC restaurants, employees use a digital success routine checklist to efficiently and accurately complete routine tasks, including food safety and quality checks.
Similarly, at Pizza Hut restaurants, the implementation of HutBot – a mobile application and digital platform – supports the management of routine operations.
From 2020 to 2023, QSRB observes an average annual increase of 15% in mobile app monthly active users for KFC Malaysia.
These tools also allow regional managers to centrally monitor operations across multiple sites to ensure consistent standards are maintained.
Additionally smart kitchens equipped with automated processes and AI-based food preparation and control help to streamline the restaurant workflow.
Food orders are broken down into items and ingredients, then prepared in batches using the same cooking process.
This optimises equipment use and ensures quick delivery of quality meals to customers.
“Digitalisation reduces reliance on manual processing and facilitates more accurate supply chain and inventory planning based on data analytics,” Nehchal explained.
“This effectively caters to our customer needs and preferences, reduces wastage across our operations by optimising order quantities and resource allocation, minimising overstocking while contributing to cost savings.”
Building value management
Building in value management from the start QSRB established a “value management workstream” at the project’s start.
This workstream developed a method to measure the project’s value, which was integrated into the company’s and linked to shareholders value.
Through digital transformation, QSRB has ensured the food outlets are customer-centric in their approach.
While, its customer-based database helps improve the products and services to suit its customers’ evolving tastes.
