Domino’s digital drive turbo charges the core
The power of digital business to grow the core is perfectly illustrated by the latest results from Domino’s Pizza. Profits in 2015 up 18% vs. year ago were “driven primarily by the growth in its digital sales”, up almost 29%, according to BBC News here. I first posted about how Domino’s was harnessing digital channels to boost physical availability back in 2011, here.
Have a quick guess about the proportion of Domino’s delivery sales now done via eCommerce.
Nope. Commerce sales now account for a mind boggling 78% of all UK deliveries.
What can we learn from Domino’s digital drive?
1. Digital business matters more than social media
Domino’s has grown by using digital to change its business model, not to “connect” or “engage” with consumers via social media. Whilst social media occasionally creates temporary, one-off moments like the Oreo’s Super Bowl “Dunk in the dark” tweet, digital business can create permanent performance enhancement.
In Domino’s case, firstly, digital channels have made ordering a pizza easier for consumers. Second, digital channels should have reduced costs, by having fewer people on the phone taking orders. Third, I imagine digital ordering is more accurate, with less room for human error.
2. Focus on convenience
Domino’s have focused on using digital to make pizza ordering more convenient. As CEO David Wild says, “The thing that customers want more than anything else is convenience”. This is the opposite of trying to “engage” with consumers, I suggest. Its about reducing “friction” to make things as easy and painless as possible.
I can vouch for the convenience of Domino’s digital ordering, using it to buy pizza for me and my teenage daughters when Mrs Taylor is away. The system remembers previous orders, tells you what promotions are on offer, stores your credit card details and even tells you where your pizza is on its journey to you
3. Keep upgrading the experience
Domino’s started its digital drive by offering ordering via the website, and has continued to enhance this channel. It has also launched apps for both the iPhone and iPad with great success. 49% of all online sales are now made using the Domino’s app, which has been downloaded by 11.5 million people.
In conclusion, Domino’s are demonstrating how to harness the power of digital business to drive growth on the core, by focusing on making shopping more convenient.