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Better Ingredients, Better Pizza, Better Email?

To build its email list, Papa John's has launched a pilot program where computers have been placed in its stores for people to enter an address. Customers then receive a thank you in the form of a discount -- but not immediately. The coupon comes via email, which allows the pizza chain to verify the addresses.

The program, which is only in a few markets, has potential since when customers show up, they often have a few minutes of idle time before their order is ready, said Bob Ford, who heads online marketing at Papa John’s. He spoke on a panel at the Summit.

Still, much of Papa John's business comes from deliveries. Part and parcel, Ford said the top way the company collects addresses is via its Web site, where customers can place orders -- the chain gets 1 million a month.

Ford said no one orders delivered pizza without a coupon. "Doesn't happen." So, its emails focus almost exclusively on a special offer.

Unlike some marketers, Papa John's seems to have high consumer tolerance of its email deliveries in addition to pizza. It sends out two emails a week to its entire database of millions, and gets few complaints, Ford said.

Papa John's has also begun experimenting with Facebook as a way to build its email list. In November, it set up a fan page. And customers who became fans and provided an email address could receive a free pizza. They were give a discount code to claim it, and could send it in via a text message.

In a 24-hour period, Ford said Papa John's had 130,000 fans -- 75% of which opted in to receive emails.

He said in 2009 the company will look to use text messaging and other mobile applications to obtain email addresses, though there is some risk. Mobile devices provide "a very personal space" and he said "we don't want to offend our customers."

They do seem to be a very hungry audience, however.

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