Domino’s is one of the largest pizza companies in the world. 2015 saw the launch of Domino’s loyalty program, Piece of the Pie Rewards, and has since amassed millions of members.
In America, there is plenty of competition for food delivery, especially pizza. How does Domino’s stand out and stay relevant to consumers? A love for Domino’s pizza even saved the life of one loyal customer, when store staff went to investigate why he hadn’t placed his regular order.
What’s the secret to Domino’s success? How did it use loyalty programs to win the hearts of millions of pizza lovers? Let’s take a look at how they use their loyalty program to grow their profits:
1. “Piece of the Pie Rewards” – Domino’s loyalty program generates mobile sales and online orders
The Piece of the Pie Rewards enables customers to order pizzas online or via their mobile app to earn points and receive exclusive bonus offers and discounts.
For example, an order worth $10 or more is equal to 10 points. Once members earn about 60 points, they can receive a free medium two-topping pizza.
Not surprisingly, this strategy helps the company drive repeat purchases and increase customer engagement. Jenny Fouracre, director of public relations at Domino’s, said in an interview “We know there are a lot of consumers out there that have been waiting for Domino’s to launch a program like this in order to provide them with a new option to earn rewards when buying pizza.”
Regular contests and giveaways – only available to loyalty members – help to encourage customers to sign-up and make use of the program. In 2017, Domino’s gave away 10 shares of company stock to lucky winners, and just this month, Domino’s is giving away round-trip tickets to anywhere in the US.
Why give away stock? It’s about offering more than material goods, explained Kelly McCormick, creative director of the the agency that partnered Domino’s loyalty program.
To consumers, real loyalty doesn’t come from bribery. It comes from building relationships that are inherently- and mutually-rewarding. That’s why we sought to make the Piece of the Pie program bigger than just free pizza. We wanted to recognize the most loyal customers as more than just customers, and welcome them into being a bigger part of Domino’s at large by rewarding them with company stock and store profits
2. Multi-Channel Loyalty Program makes ordering Domino’s easy
Loyalty members can rack up points by ordering both online or in-store. It doesn’t matter if you order takeout via phone call, use the app, post a tweet or emoji, and use your Amazon Echo or Google Assistant—you’ll earn rewards either way.
Domino acknowledges that its customers use both digital and non-digital channels to engage with their brand. Steve Kennedy, director of loyalty, Domino’s, told Loyalty360, “Customers shouldn’t miss out on earning points toward free pizza just because they choose to order through a different ordering channel. We made this enhancement to ensure all customers are being rewarded for brand loyalty.”
Domino’s pursuit of multichannel resulted in you being able to order pizza by texting a pizza emoji. More recently, Domino’s has expanded ordering to apps like Slack and Messenger, smart home assistants like Google Home and Alexa, and even allows you to order pizza with your watch, TV or car.
3. “Piece of the Pie Pursuit,”- launched a mobile game for loyalty points
To promote its loyalty program. Domino’s launched the Piece of the Pie Pursuit—a mobile game that customers can play to collect loyalty points.
The game features a custom-built Rube Goldberg machine that you’ll guide along a boost-filled track. If you finish all six unique levels, you can unlock bonus points and get a free pizza when you place your next qualifying order.
4. Domino’s Loyalty Program helps Learn More About Consumer Behavior
Since the launch of the Piece of the Pie Rewards, the company has learned more about customer behavior. They use insights from their members to build better relationships and improve their user experience.
“Be it negative or positive feedback, we want to hear it. Both are opportunities for us to learn and take steps to creating a better member experience. We have numerous customer feedback channels in place to ensure we are always listening, both at a corporate and a store level.” said Steve Kennedy, director of loyalty, Domino’s, in an interview.
In a separate interview, Kennedy explained Domino’s approach to loyalty as a focus on where their existing customers are; if customers are online, Domino’s focuses on making it easy to order online. A sensible strategy, given new customer acquisition costs 6-7 times more than customer retention.
“Both quantitative and qualitative feedback channels have proven the program is enhancing our relationships with our members and generating increased levels of brand loyalty and affinity.” Since loyalty program members buy 20% more frequently and spend 60% more, this strategy will pay off with a bigger slice of the market for Domino’s.
The Secret to Domino’s Loyalty Program Success:
Here’s what we’ve learned from Domino’s loyalty strategy:
- Generate mobile sales via loyalty programs
- Think of creative strategies (i.e. games) to encourage users to accumulate loyalty points.
- Create a multi-channel loyalty program.
- Gather customer insights through your loyalty members.
How Domino Pizza’s Loyalty Program Enables It to Get A Bigger Slice of the Market
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