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Domino’s strong mobile sales prove millennials’ dependency on digital ordering

NEW YORK – A Domino’s Pizza executive at the Mobile Marketing Association’s SM2 Innovation Summit 2015 discussed the brand’s strong digital sales, which stem from enabling mobile-savvy consumers to place pizza orders via an application, social media, a virtual voice assistant and an online site to ensure maximum convenience and reach.

During the “Mobile’s Transformative Role at Domino’s Pizza” session, the executive revealed Domino’s dedication to reinvention, a technology-focused strategy that has resonated positively with customers in the millennial demographic. The ability to order pizzas via a slew of mobile-enabled channels has significantly contributed to the company seeing more than 50 percent of sales coming from digital avenues.

“We’ve collapsed the pizza ordering experience completely,” said Dennis Maloney, vice president and chief digital officer of Domino’s, Ann Arbor, MI. “We are using technologies to give our consumers a new level of convenience they have never had before.”

On-the-go ordering
Domino’s began its reinvention process in 2010, when it decided to revamp its pizza recipes as well as its advertising. The brand opted to communicate with customers with a new transparency that it claims was unheard of in the food and beverage industry, a tactic that led to an increased focus on convenient ordering.

Whereas before, many pizza companies with online ordering options would require guests to recreate their order each time they made a purchase, Domino’s developed the Pizza Profile to allow users to save favorite items, as well as payment information, for a speedy checkout experience.

This past February, Domino’s virtual ordering assistant Dom, which lets consumers dictate orders via mobile devices while on-the-go, reached a half-million orders since its 2014 launch, suggesting that more food brands should consider investing in voice ordering technology (see story).

More than 50 percent of its orders stem from digital avenues, with half of those coming from mobile devices.

“When more than half of your sales are coming from digital channels, you are an ecommerce company,” Mr. Maloney said. “We’re right on the cusp of that.

“The shift to mobile has been fantastic.”

Domino’s has also rolled out television commercials to advertise Dom, which typically result in a halo effect of higher sales across all channels. Mr. Maloney claimed Domino’s was one of four brands to provide television spots for its virtual voice assistant, alongside major technological conglomerates Google, Apple and Microsoft.

Meanwhile, the Domino’s AnyWare program functions as an umbrella over several different digital platforms. Consumers may order and track their pizza using a Ford Sync within their car, on a smartwatch or even with a smart television.

Another successful ordering channel is social media network Twitter. Users may tweet a pizza emoji to place an order, giving new meaning to the convenience of ordering while talking to friends or posting on-the-go.

Nevertheless, Domino’s is not resting on its laurels when it comes to the lucrative revenue potential of mobile sales. One out of eight pizzas delivered in the entire quick service restaurant sector is a Domino’s item, giving the company ample opportunity to step up its efforts to increase that statistic.

Integrating loyalty
Domino’s is continuing its mobile blitz this year by introducing a new loyalty program, Piece of the Pie Rewards, that enables consumers to order pizzas via its mobile application or online to begin earning points redeemable for free menu items (see story).

The system was designed so that consumers may order and track their pizzas anywhere and any way they want, which the brand has found are two paramount aspects of the ordering experience.

“We’ve become quite fanatical about delivering great consumer experiences,” Mr. Maloney said.

The ability to order via text, social media, online and mobile app or site has been a huge hit with consumers of a younger demographic. This mobile-first dedication is a smart move for Domino’s, as it likely helps snatch competition away from similar marketers such as Papa John’s or Pizza Hut.

“We definitely see that technologies like this are clearly resonating with the millennials,” Mr. Maloney said.

One challenge for the chain has been attribution. It is difficult to attempt to understand an entire household with a multitude of personal devices for each family member, but it is something that the brand is committed to perfecting.

“We are working at it,” Mr. Maloney said. “In the next couple of years, we hope to be very good at it.”

Final Take
Alex Samuely, editorial assistant on Mobile Commerce Daily, New York