Domino's Pizza is rolling out a mobile coupon program that will serve its franchises nationwide.
“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.
Domino’s operates a network of 8,773 franchised and company-owned stores nationwide and 60 markets overseas.
Last year Domino’s more than tripled its number of opted-in consumers, the company claims. It plans to invest significantly in further growing its mobile consumer base.
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.
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.