Domino's Pizza rolls out national mobile coupon program
March 5, 2009
Domino's Pizza is seeing success from its mobile couponing initiatives
Domino's Pizza is rolling out a mobile coupon program that will serve its franchises nationwide.
The pizza delivery franchise has selected Air2Web to be the sole mobile services provider for Domino's new mobile coupon campaign management platform. Domino's will use Air2Web's services to send coupon codes to opted-in consumers via text message.
"We're extremely satisfied with the results we are seeing with our text campaigns, as well as the overall growth of our mobile-ordering customer base," said Rob Weisberg, vice president of multimedia marketing for Domino's Pizza, Ann Arbor, MI.
"We will continue to invest in systems and technologies that will allow us to build and maintain relationships with this highly valuable segment of our customers," he said.
Air2Web, Atlanta, helps companies such as Domino's with their customers through mobile marketing campaigns and integrated mobile technology.
Domino's operates a network of 8,773 franchised and company-owned stores nationwide and 60 markets overseas.
Through this new program, Domino's customers can use the coupons when they place orders online in English and Spanish by visiting http://www.dominos.com or from a Web-enabled mobile phone at http://mobile.dominos.com.
Last year Domino's more than tripled itsr number of opted-in consumers, the company claims. It plans to invest significantly in further growing its mobile consumer base.
Air2Web developed a customized promotional program for Domino's through the pizza chain's DirectTEXT/Info Center platform.
For the next year Domino's will expand its mobile coupon campaign efforts and will continue to enhance the consumer ordering experience at http://mobile.dominos.com by adding new ordering features, additional coupons, new products and an improved user interface.
According to Forrester Research, 30 percent of consumers would like to receive mobile coupons.
Redemption rates for mobile coupons range from 5 percent to 15 percent, which is much higher than typical print coupon rates of 1 percent or less.
Consumers must opt-in in order to participate in mobile coupon programs, accounting for higher redemption rates.
Paper coupon usage has declined 40 percent in the last few years due to lack of immediacy and the manual effort of clipping, according to the Food Marketing Institute.
Real-time offers, geographic targeting, personalization, time-of-day redemption tracking and a lower cost of delivery make mobile more compelling than traditional paper coupons.
This isn't the first time a pizza chain has done something mobile.
Pizza Hut Inc. was the first pizza chain to offer both text messaging and mobile Web ordering options on a nationwide basis.
The Dallas-based company's "Total Mobile Access" service adds a mobile component to online ordering, which is already one of the most popular segments of Pizza Hut's business. That development came less than two weeks after rival Papa John's announced a texting promotion for the Super Bowl, a major pizza-consuming occasion (see story).
In fact, Papa John's is one of the most successful pizza chains in mobile. The chain claimed to have generated $1 million in mobile Web orders in December, less than six months after enabling the service (see story).
"I think Domino's has seen the value of the mobile channel in terms of being targeted towards repeat customers," said Curtis Rapp, vice president of sales at Air2Web.
"Their customers have already opted in for coupons," he said. "Basically Domino's is increasing its breadth in the mobile channel and they have selected us to be their exclusive mobile partner."
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