How Chipotle uses Suzy to rapidly enhance their online experience

 

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Chipotle’s digital sales are expected to be as high as $2.4 billion in 2020, more than double that of last year, and the majority of that 2020 figure is made up of new users. New mobile and online customers have stuck around thanks to some fast adaptations informed by research into rapidly changing consumer lifestyles.

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With in-restaurant dining temporarily closed in many states and a growing number of consumers choosing to stay home and order in, a brand’s entire touchpoint with its customers is increasingly no larger than a cellphone screen.

For restaurants seeking to thrive in this new normal, an easy and inviting online experience, designed with real-time consumer data, can mean the difference between becoming the go-to spot for takeout or going out of business.

One company that’s moved with agility into the app arena is Chipotle, which is projected to see up to $2.4 billion in online sales in 2020 — more than double those of last year. The company’s home/office delivery orders were up 125% last quarter, and its digital revenue was up 216%. 

According to Chipotle Chief Restaurant Officer Scott Boatwright, the majority of new customers who started making online orders during the pandemic were completely new users to the brand. Digital Chipotle customers have tended to stick with the digital channel, while in-restaurant customers have continued ordering in-restaurant, Boatwright told PYMNTS in a recent interview.

During a recent webinar, “Chipotle Reinvents MR: Inside the Business of Burritos,” Suzy spoke with Ally Sigmon, Chipotle’s Manager of Consumer Insights, to learn about the digital tweaks that have kept the fast-casual chain resilient in a tumultuous year.

“It does give us some insights into how we might target different consumers with messaging that’s more relevant to them, or if there are certain promotions or activations that are more relevant for an in-store consumer than for a digital consumer,” said Sigmon. 

Sigmon has been trying to understand the digital-online divide for a while, beginning with some 2019 research using market research platforms like Suzy into why some customers were using food delivery apps for other brands, but not for Chipotle.

That led to insights into ways to make the company’s online experience as approachable for new users as its in-store experience, inspiring changes to the ordering process that were already in-the-works but picked up speed in early 2020.

“I’m really glad we did that, because, guess what? 60% of our total revenue comes from online sales right now,” said Sigmon.

One of those changes has been to promote each menu item as highly customizable, with options like “a little more chicken,” and “a little less rice,” to recreate the experience of ordering a burrito or bowl in line at a Chipotle restaurant.

That level of customization was already possible for online orders, but after research shed light on how much in-store consumers valued customization, Chipotle made the option a more prominent feature online beginning in April, Sigmon said.

For pick-up customers, Chipotle has expedited the rollout of its “Chipotlanes,” or digital order pickup lanes, where customers can safely receive online orders without getting out of their cars.

While Chipotlanes were already a priority for Chipotle, and one of the first items Sigmon began researching after joining the company in fall of 2018, the project has accelerated in recent months to meet the needs of consumers who would prefer to keep their transactions as socially-distanced as possible. In Q1 of this year, there were 11 Chipotlanes. By mid-July, Chipotle had opened their 100th lane.

Chipotle has also introduced digital exclusives and “family extras,” like codes for free chips and guacamole, with the chronically-at-home consumer of 2020 in mind.

“We know there are a lot of people at home with their families now, for better or for worse, and we wanted to offer something that really speaks to them,” Sigmon said.

To gather the insights that have informed these changes, Sigmon uses a mix of traditional consultants and research firms, as well as DIY platforms like Suzy and Chipotle’s in-house qualitative consumer panel, dubbed “the Guac Stars.” But she says the real-time data provided by Suzy has been invaluable for understanding and responding to consumer needs during this period of non-stop change.

“We’re a lean team, and we’ve moved really quickly,” said Sigmon. “In order to react to culture, you have to move at the speed of culture, and DIY really lends itself to those quick responses.”

 
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