Papa John's Houston system has reported a 52-percent Twitter conversion rate — followers to customers — from the deployment of HipLogiq's SocialCompass app. According to a news release, the app helps operators find and engage new customers on Twitter in real-time, as they're deciding on what to eat.

Papa John's Houston uses SocialCompass to find local, geographically targeted tweets about "love pizza," "want breadsticks" and "ordering pizza," among other keywords. When found, the tweets are flagged so the company can respond with a discounted offer or free gift to encourage new business.

"A lot of restaurants, be it national chains or local eateries, use direct marketing and ads in clipping magazines," said HipLogiq CEO and co-founder Bernard Perrine. "But at best, restaurants get a 1 to 2 percent success rate on average for that investment. Papa John's celebrates a 52-percent success (rate) with SocialCompass."

According to Bill Robinett, Papa John's Houston's director of communications, the company uses SocialCompass to remind Twitter users that papa John's is a good option for those expressing interest in buying pizza. For example, if someone sends a tweet about needing to get their kids fed, Papa John's would send them a coupon.

"What's so appealing about SocialCompass is the opportunity to target a completely different kind of market than we hit with mass advertising or direct mail," Robinett said. "There is no way to mass market to just the right customer at just the time they are about to order pizza. SocialCompass lets us talk to customers one-on-one instead of one in a million."

SocialCompass works using its patented Engagement Engine, which searches Twitter and looks for relevant tweets based on a restaurant's keywords and location. When SocialCompass finds a relevant tweet, it's flagged on a dashboard so the restaurant or their advertising agency can respond in real time with an offer — 20 percent off, free product or Buy One Get One (BOGO), for example — to turn a potential prospect into a customer. This is called a location-based conversation (LBC).

Read more about social media marketing.

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