KFC evolved from a brand with 6,500 brick-and-mortar stores to a ‘consumer centric total experience brand’, powered by China’s most popular mobile platforms. With its own digital ecosystem which provided deep understanding of each customer’s likes and dislikes, from the products to promotions, and campaigns to experiences to transaction, KFC connected with millennial consumers and reinvented the customer experience through technology and creativity.

The transformation earned KFC 215 million loyalty memberships, from zero in 2015, and a 13 consecutive quarters of growth. KFC went from its low point to being the most influential restaurant brand in China.

KFC arrived in China in 1987, when Western-style fast food restaurants were a novelty in the country. But after three decades, KFC was losing its appeal amongst its most important audience… the younger generation. As KFC’s brand appeal and sales declined dramatically, they needed to transform to build new and lasting relationships with the Chinese youth.

BECOMING A TECH BRAND

There are 225 million millennials in China with 78 million teenagers in the Post 95 generation alone. To reach this vast and diverse generation of consumers required a new approach that is frictionless at every touchpoint on the consumer journey. In cooperation with tech companies like Alibaba, Tencent and Baidu, KFC’s retail experience needs to be transformed to link over 6500 restaurants in a unified digital ecosystem to provide a digital experience for customers.

MILLENNIAL INSIGHTS

With three key insights in mind towards millennials - eating is a trendy social experience; technology has massively changed millennial lifestyles; and they do everything with a purpose - KFC used global insights, local insights and expertise to leverage the creativity and innovation in the KFC brand through content and entertainment. To compete for the attention of the next generation of digital natives, businesses and brands need to take a transformative approach to close the gap between brand inspiration and transaction.

TRANSFORMING IN-STORE EXPERIENCES

Using full commerce capabilities on all mobile platforms, KFC transformed the brand from being a 100% cash-transaction business to 90% cashless.

The regional service experience was integrated into a single platform, the KFC Super App, enabling customers a single point of entry for ordering, payment, delivery, loyalty rewards and e-gifting.

The 100% digital experience KPro brand, using facial recognition to enable consumers to "pay with a smile."

An A.I. voice ordering robot that understands orders in multiple Chinese dialects.

A K-Music digital jukebox lets customers customise in-store playlists using the KFC mobile app.

Using location-based technology, KFC introduced Onmyoji in stores for role-playing game fans and used AR technology to get special rewards.

TRANSFORMING COMMERCE

KFC launched social commerce innovation ‘Christmas Pocket Store’ that enabled anyone to be virtual KFC store owners and order from their friends to enjoy offers.

TRANSFORMING DELIVERY

To manage massive order spikes when it rains, KFC integrated marketing technologies as a solution. Triggered by location and real-time weather data, the KFC app transformed to offer simplified rainy day combo meals that could be prepared and delivered 25% faster.

In a few short years, KFC evolved from a brand with 6,500 brick-and-mortar stores to a ‘consumer centric total experience brand’, powered by China’s most popular mobile platforms. With its own digital ecosystem which provided deep understanding of each customer’s likes and dislikes, from the products to promotions, and campaigns to experiences to transaction, KFC reinvented the customer experience for young Chinese consumers.

KFC’s transformation has delivered results. It earned 215 million loyalty memberships, from zero in 2015, and have experienced a 13 consecutive quarters of growth. KFC went from its low point to being the most influential restaurant brand in China.