Date
\uD83D\uDC65 Participants
\uD83E\uDD45 Goals
Assure alignment on objectives, goals and success metrics with the market
Update on the progress so far
Address outstanding questions
\uD83D\uDDE3 Discussion topics
Assure alignment on objectives, goals and success metrics with the market
Context:
Since the end of 2021 Germany has offered BK Pay as a form of payment at the counter and Kiosk. BK Pay is a Burger King branded Bluecode app that allows you to pay securely, collect and redeem rewards automatically at the checkout with a single scan, even if you are offline. Bluecode is an EU-funded project offering an advanced mobile payment solution that allows European entities to handle the entire non-cash payment process. Based on barcodes (Tokens), the process ensures anonymity, security and resilience to cyberthreats.German market has introduced BK Pay with an objective of decreasing credit card and cash payments due to high processing fees and cash-handling problems respectively. Currently cash payments constitute over 50% of all in-restaurant transactions. The main goal of the BK Pay app launch was to verify whether the functionality worked as intended.
Since the release in 2021, the app has struggled with adoption accounting for less than 1% of all kiosk and POS transactions. The hypothesis assumes that a low traction is a result of a friction created by having to unintuitively download a secondary app, hindering the BK Pay discovery process. The launch was limited only to a selected 20 pilot restaurants and there were no promotional efforts dedicated to driving app awareness throughout this time.
With that work, German market wishes to facilitate adoption by eliminating the secondary app and enabling Bluecode payment functionality in the main Burger King app supported by RBI.
🎯 Problem Statement(s)
Fz:
Currently German FZs struggle with cash-handling issues as well as high processing credit card fees, which is why they’d like to reduce % of transactions completed with both of those methods.
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BK Pay is currently available as a separate app which hinders discovery, adoption and creates friction for users who’d like pay with BK Pay. Moreover, users may be confused seeing both apps, as they are tring to download the main Burger King app.
❔ Hypothesis
Primary:
Introducing
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BK Pay as a payment method to web/app will
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increase MARU by X% by
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the end of <date> by introducing another convenient way to of payment method in-restaurant by accommodating all users with a checking account in Germany that are not able to use Apple or Google Pay. Since the vast majority of banks don‘t support Apple Pay with Girocard (the local debit card) and almost none Google Pay, BK Pay will have an advantage over other digital payment wallets on the market.
Introducing BK Pay as a payment method to web/app will Increase an average check value for a restaurant customer by X% by <date>, assuming X% of current cash payers will transition to BK Pay, based on the fact that non-cash payers tend to have a higher average check by X%.
Secondary:
Introducing BK Pay as a payment method to web/app will decrease overhead cost by X% by <date> , assuming that X% of cash payers and X% of credit card payers will transition to BK Pay.
Do you have a way to track and report it?
Payers' behavior:
The SPACE 2022 results show that:
Cash was the most frequently used payment method at the point of sale (POS) in the euro area and was used in 59% of transactions, down from 79% in 2016 and 72% in 2019.
Card payments were used in 34% of POS transactions, up from 19% in 2016 and 25% in 2019.
Other payment methods were used for 7% of POS transactions. The share of payments using mobile apps increased from less than 1% in 2019 to 3% in 2022.
In terms of value of payments, cards (46%) accounted for a higher share of transactions than cash payments (42%). This contrasts with 2016 and 2019, when the share of cash transactions was higher than the share of card transactions (54% compared to 39% in 2016 and 47% compared to 43% in 2019).
Contactless card payments at the POS increased considerably in three years, from 41% of all card payments in 2019 to 62% in 2022.
Cash was most frequently used for small value payments at the POS, in line with previous comparable surveys. For payments over €50, cards were the most frequently used method.
Proposed Objectives:
Primary:
Increase MARU (Monthly Active Registered Users) by X% in order to collect user data.
Increase an average check value by X%. (usually higher with cc than cash) (whats the average check value for cc and whats for cash, is the split 50/50)- overall average check.
Secondary:
Reduce overhead costs by X % by decreasing in-restaurant cash and credit card payments (in selected restaurants) to X% combined, by the end of 2024, maintaining at minimum the same level of average monthly sales X EUR/ month at least, considering seasonality.
Decrease cash-handling costs by X% (From X to X )
Decrease credit card processing fees by X% (From X to X )
convenience- only Kaufland has this use case- attempt to differentiate the BK app- ties back to MARU, decrease time to place an order (difficult to measure) -
___________ If loyalty program is involved______
| Jira Legacy | ||||||
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📈 Additional Metrics to be Monitored:
Metric | Description | Current Value | Expected Value | How are we measuring it? |
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cash-handling costs/mo | costs connected with in-restaurant employee cash fraud |
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credit card processing fees /mo | a sum of all the fees associated with processing a credit card payment |
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Average time to place an order
| Average time that it takes for a customer to place an order successfully (together with payment) once they approach Kiosk or the front counter. |
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% of BK Pay transactions per channel | % of transactions that were made with BK Pay per each channel; example: Kiosk, POS |
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sales EUR made with BK pay
| Sum of check value made with BK Pay for a selected period of time |
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Average monthly # orders paid via BK Pay app per BK Pay app user | average number of orders paid with BK Pay |
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Average order value per BK Pay user | average value of a check per BK Pay user |
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% of users paid successfully out of the users that opened BK Pay screen | number of users who were able to place order successfully with BK Pay out of the total that opened the BK QR code screen |
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% of users opened BK Pay but have not completed onboarding
| number of users who have not completed a Bluecode onboarding process out of the total who landed on the BK Pay screen |
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Bk Pay onboarding funnel (conversion and abandonment rate) | % of users proceeding to each consequent step out the ones landing on BP Pay |
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% of users completed onboarding but did not pay with BK Pay | how many users registered with BK Pay but did not end up paying |
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BK Pay users LTV | Lifetime Value of users who has ever paid with BK Pay |
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BK Pay payment success rate | percentage of attempted transactions that are completed successfully |
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Share current work:
Address outstanding questions:
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Any perspective on cross-store/ venue promotion?
Kaufland - do they incorporate loyalty? What was their objective?
How do we envision the cross-promo? What’d be the objective?
Follow up on the data insights from Bluecode on the current BK Pay usage:
Payment success raterate =>
we had 1763 payment attempts where 45 transactions happened at other merchants!). of the transactions at BK, only twice was a token expired (user can try again), twice the payment was cancelled by the user and 41 users were blocked due to clear and proven fraud attempts.What % of users paid successfully out of the users that opened the BK Pay app =>
we had about 15.9K app openings, 10% of openings end up as payment, the rest was informational or onboarding processes.What % of users downloaded the app but ended up not inserting the bank account detailsdetails =>
we had 1656 wallet installed, 803 onboarded and 513 made at least one payment, so 853/1656 = 51% did NOT onboardWhat % of users inserted their bank account details and did not pay with BK PayPay =>
513 did at least one payment so, 290/803 = 36% did onboard but no paymentAverage # orders paid via BK Pay app per BK Pay app useruser =>
1598 payments in BK restaurants, on a contract basis (IBAN equivalent, ie unique users) it was 312 different contracts, 5.12 payments per contract!Average order value per BK Pay useruser =>
1598 payments had an total value of 18 218 Euro, average order value 11.40 Euro, average order value per contract 58.39 Euro.
assuming 1% of transactions done with Bk Pay,
1% of users have current Bk Pay,
page visints 5% clickable
DE market survey on demand for BK Pay
Script
Sample size and demographics
Results
✅ Action items
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Magdalena Dlugolecka will follow up with the restructured objectives and metrics early next week and we can connect on that asynchronously via email.-early week of 4.9.23
Melina to provide the survey results from DE
Eduardo Javier Magdalena Dlugolecka We'll reconvene next Friday at 2:15pm to review the user test results and the design proposal. 8.9.23