Arvato creates simple, safe payment solution for Finland’s favourite pizza
Ordering a pizza online should be easy. But for customers of Kotipizza, the largest pizza chain in Finland, a complicated payment system was proving anything but convenient – and preventing it from taking an
even bigger slice of the market. Arvato’s solution was made to order.
Despite being Finland’s favourite pizza, Kotipizza was struggling to convert its popularity into online sales. The main sticking point was that the online pizzeria was part of a generic web store where customers had to register, log in and pay a transaction fee every time they ordered a pizza online. The upshot was low conversion rates, with visitors to the site preferring to leave hungry than go through a time-consuming process that involved repeatedly filling in payment details and submitting to authentication systems such as MasterCard SecureCode and Verified by Visa.
"Our online store is our digital pizzeria and a strategic part of our business. We wanted to offer our customers an even better customer experience and seamlessly integrate our online store with our multichannel sales."Tommi Tervanen, CEO of Kotipizza
Queues offline and online
But what about paying at the restaurants themselves? Apart from going against the objective of increasing online sales – Kotipizza wants to increase e-commerce sales to €20 million by 2017 – on-site payments also presented problems. For customers, it entailed spending a considerable amount of time queuing at the point of sale; employees had to work as cashiers instead of making pizzas; and, from a franchiser perspective, turnover was harder to control if cash was used. It was time to think outside the box.
Converting walk-ins into regulars
With help from Arvato, Kotipizza reinvented its ordering and payment system, making it easy for customers to place their orders online, in the store, or on their smartphones or other mobile devices.
“Pizzapiikki,” a new payment solution based on a monthly invoice, takes its name from the Finnish for bar tab ( “piikki”), where patrons pay for everything at the end of the evening rather than paying for one drink at a time.
On registering for the service, Kotipizza customers get a code that can be used in any sales channel. They can also set up joint family or business accounts through which family members and employees can place orders. Arvato carries out an instant credit check for new customers, and takes care of the entire payment process, allowing the pizzeria to concentrate on making great pizzas.
Safer and more convenient
Customers get a single invoice at the end of the month, so they never have to worry about cash or credit cards when ordering or picking up their pizzas. They even get an express lane at the pizzeria when picking up their order, with no need for staff to worry about cash or cards.
arvato’s solution also strengthens security, and helps protect against fraudulent orders. SSID security and cross-checking during initial registration, and smooth identification processes in the stores, guard against attempts to use false identities.
Jouko Tossavainen, eCommerce Manager at Arvato Financial Solutions Finland, says not only does Pizzapiikki make it easier for customers to order and pay for their pizza – it is cheaper, too.
“Customers could pay by invoice before, but they were charged €3 and invoiced after every purchase. With Pizzapiikki, they are invoiced once a month, and if they settle their bill within 14 days a flat fee of just €2 applies.”
Feeding into a multichannel strategy
Arvato handles all the billing – including invoicing, ledgers, payment surveillance and notifications – as well as collections and customer service for Kotipizza, along with managing its customer database, providing
valuable marketing information.
A white-label solution means everything is packaged under the Kotipizza brand, increasing customer recognition and loyalty. Pizzapiikki is also in line with a omnichannel customer-service strategy where the same easy and secure payment options are made available across the board, from online gaming to mobile devices.
“It’s a win-win, any way you slice it. Kotipizza has found a way to offer more cost-effective micropayments and increase customer loyalty, conversion and turnover.”Jouko Tossavainen, eCommerce Manager at arvato Financial Solutions Finland
Facts about Kotipizza
- Founded in 1987 by Rabe Grönblom
- Today there are more than 280 outlets across Finland
- Its award-winning Berlusconi pizza, made with rye and smoked reindeer, turned the tables on the former Italian prime minister who once described the Finnish diet as something to be “endured”
- Aims to increase online sales to EUR 20 million by 2017
- Has selected Arvato to cover the entire payment process, including invoicing, ledgers, payment surveillance and notifications, collections and customer service