Domino's Follow-up

I was catching up on the blogs this morning and noticed a post on Mashable about Domino's UK and their use of social media, which is particularly interesting after our discussion last night. The article pointed out that over 30% of orders are now placed online, which the CEO, Chris Moore, attributes to social media.

Some of the tools that they use are Foursquare promos (mayors=free pizza, checking in=free side dish), Facebook (over 36,000 fans), and a "superfan" program (Facebook contest app with prizes for recruiting most fans/brand loyalty). Through all of these efforts, Domino's UK profits have increased by 29% (about $26 million), which Moore also associates with social media.

Moore said that while the goal is ultimately to drive pizza sales, it's also to build customer loyalty. The Foursquare promo is interesting since it rewards customers for checking into a delivery place, a tactic that cuts down on delivery prices/labor for Domino's and gets you acquainted with your local restaurant - and another way to build loyalty.

It seems as though these tactics are all working very well for them, though it's hard to say how they were effected by the crisis that we discussed yesterday.