Domino’s Pizza sales boosted by online and social media

Domino’s Pizza has revealed that its e-commerce function has helped deliver a 11 percent increase in its total sales for the first half of 2012.

Describing its e-commerce sales as “buoyant”, the pizza company reported a 43. 4 percent increase in online sales, up from £84.5 million in the first half of 2011 to £121.2 million in the same period this year.

This was driven by innovations in the company’s website and mobile platforms and increased investment in online marketing and social media, Domino’s said.

Lance Batchelor, CEO of Domino’s Pizza, said: “E-commerce continues to be the start of the show and we flexed our technological muscle during the period with the launch of Domigoals, an app that keeps football fans up-to-date with the latest results and offers the chance to win pizzas or receive voucher codes.

“The app had over 54,000 downloads and an engagement rate of 88 percent in just over three weeks.”

Online sales now represent 52. 4 percent of all UK delivered sales, up from 41.9 percent last year, Domino’s said.

Some 17.9 percent of the online orders were made through a mobile device, as customers can make orders via Domino’s free iphone, iPad, Android and Windows Phone 7 apps.

During the period, the company also took more than £1.5 million in online orders in a single day for the first time, Batchelor added.

Domino’s has also used technology to improve its marketing, with one of its initiatives being a Twitter Reverse Auction, which was promoted on Facebook and Twitter. During the ‘auction’, the more people tweeted using the hashtag #letsdolunch, the more the price of the pizza dropped. The company saw a twelvefold increase in tweets that day.

It also used augmented reality technology via the free Blippar app. Smartphone users who held their devices over the Domino’s logo would see a piñata game, which was designed to support the launch of the company’s Mexicano range, and offered players prizes including free pizzas and discount vouchers.

“So far this year, 42 percent of the marketing budget has been spent on digital activity - up from roughly 30 percent last year,” Batchelor said.

In terms of other IT initiatives in the period, Domino’s launched a new EPoS (electronic point of sale) system called PULSE in its stores, which it said gives franchisees the opportunity to improve their control of food costs and benefit from better labour scheduling.


Copyright © 2012 IDG Communications, Inc.

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