During a call with analysts to discuss the company's second-quarter FY 2023 financial results, Domino's CEO Russell Weiner revealed their plans to launch a new and improved loyalty program in the US in September.
GLODomino’s Pizza has decided to join Uber Eats’ marketplace to expand its reach and attract more customers. Despite this move, the company is also focusing on strengthening engagement through its direct channels by introducing more convenient and easier-to-redeem loyalty rewards.
During a call with analysts to discuss the company’s second-quarter FY 2023 financial results, Domino’s CEO Russell Weiner revealed their plans to launch a new and improved loyalty program in the US in September. The program will lower the requirements to earn and redeem loyalty points, aiming to keep existing customers satisfied and attract new ones.
Unlike many other brands that tend to reduce perks or make them less appealing when relaunching their loyalty programs, Domino’s is taking the opposite approach. They want to enhance customer benefits and increase loyalty.
According to data from a PYMNTS study, about half of all diners, particularly those at quick-service restaurants (QSRs), participate in restaurant loyalty programs. Moreover, inflation has led to increased demand for perks, with more consumers receiving discounts on their restaurant purchases.
Domino’s is strategically leveraging its loyalty program to incentivize pickup sales, which offer higher margins for the brand compared to delivery. By offering a lower threshold for redeeming points on carryout orders than on delivery orders, they encourage customers to opt for pickup.
Weiner explained that before joining Uber Eats and other aggregators, the company made sure that sales through these channels would complement their direct delivery business rather than cannibalize it. Research indicates that many customers prefer pickup over delivery, and Domino’s believes it can handle third-party orders without negatively impacting its existing operations.
Despite expanding into third-party platforms, Domino’s already holds a significant share of the US pizza delivery market, receiving one out of every three pizza delivery orders. With improvements in service time and capacity, the company is ready to handle the next wave of orders.
