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Domino’s app sales spike to more than 41pc in Britain

Domino’s is seeing strong digital engagement in Britain, with online orders rising by nearly 29 percent and application-based sales increasing by more than 41 percent, proving consumers’ widespread adoption of mobile ordering methods.

Seventy-seven percent of Domino’s deliveries in Britain stem from ecommerce channels, showcasing how the chain is experiencing a decline in orders made over the phone or in-person. The brand’s dedication to incorporating the latest mobile ordering technologies – including an Apple Watch app and an integration with Amazon Echo – have paid off among pizza fans.

“Customers have spoken and it is clear that ordering via mobile is only going to become more and more dominant in 2016,” said Jon Squire, CEO and founder of CardFree. “It is similar to early days of mobile banking; once a customer experiences this level of service on-the-go, they both never go back and they expect all medium-large brands that are serious about customer experience to embrace the technology.

“Our partners are seeing ticket growth in excess of 30 percent via mobile, not to mention frequency and loyalty switching as a result of being early to the market with mobile services.”

Digital sales growth
With many fast-food chains’ sales declining around the globe, Domino’s is setting itself apart from competitors by placing a heavy emphasis on fueling mobile orders, a strategy that has so far been working. Nearly 50 percent of all online sales come from its mobile app, proving that consumers are not downloading it only to receive an initial discount before deleting it entirely.

Users are finding utility in the ability to quickly order pizzas, save favorite orders and track the status of their order – a useful feature for those who prefer to purchase meals while on-the-go.

Approximately 11.5 million people have downloaded the Domino’s app.

The brand’s chief executive officer attributes this meteoric rise in mobile engagement to the sheer convenience that Domino’s digital ordering provides. Consumers appreciate being able to quickly purchase a pizza without pulling their smartphones and searching for the number of a local restaurant.

The spike in mobile sales has also prompted Domino’s to have a larger bricks-and-mortar footprint. The chain opened 61 new stores in Britain last year, partly to ensure there are enough facilities to handle the barrage of orders.

Staying at the forefront of its sector when it comes to mobile has always been a top goal for Domino’s.

Domino’s recently furthered its image as a driver in mobile ordering with the addition of the Apple Watch to the bevy of channels where customers can pay for and order products (see story).

The chain also continued its innovative streak by integrating Amazon Echo prior to the Super Bowl, an attempt to drum up sales during one of food takeout’s biggest days of the year (see story).

External factors
Domino’s also admitted that its financially fruitful year was partly due to cheaper prices for ingredients such as cheese and wheat.

The brand’s purchasing power has remained high, as evidenced by its purchase of German delivery chain Joey’s Pizza last December.

Additionally, the chain has been staying innovative by continuously rolling out new menu items to excite consumers, including the hot dog stuffed crust pizza.

Domino’s is likely to maintain its mobile stronghold over the food and beverage sector in 2016.

“Any time you see growth like 41 percent in mobile, you can assume its prowess in staying ahead of, or current with, mobile trends is cutting into competitors’ market share,” Mr. Squire said. “Domino’s has innovated with Dom (voice ordering), Apple Watch and an Uber-like Tracker that is putting it in a position to be the Starbucks of pizza.

“All of this leads to increased loyalty that reinforces the bottom line – proving that the mobile customer still remains at least two times more profitable.”