Can Domino’s gain customers by offering free pizza for pies bought at rival shops?
Will a rising Domino’s lift all pizza sales? Clumsy adage knockoffs aside, Domino’s is launching a new rewards scheme that the company believes will lift not only increase its own sales, but the category as a whole.
The new offer, which begins on Feb. 2, is tied to Domino’s Points for Pies rewards. Anyone registered on the Domino’s app can send a photo of a pizza – no matter where it was purchased – and receive 10 rewards point from the chain. People participating in the program can send one photo a week and receive a free two-topping medium-sized pizza from Domino’s once they’ve reached 60 points.
CEO Rich Allison told CNBC’s Jim Cramer that he believes that if Domino’s can get consumers who eat rival pizzas to try its product, “We’ve got the opportunity to bring them back again and again.”
Domino’s is launching the new rewards offer as it approaches one of its busiest days of the year – Super Bowl Sunday. The chain said it typically sells nearly two million pizzas – roughly 40 percent more than the average Sunday – on the day of the big game. It also sells about four million chicken wings.
One change from past Super Bowl Sunday weekends is that Domino’s won’t be running commercials during the game’s broadcast.
“Instead of advertising during Sunday’s game, we decided to invest in a breakthrough program that rewards everyone who loves pizza as much as we do,” said Art D’Elia, Domino’s senior vice president – chief brand officer, in a statement. “We know everyone is asking themselves, ‘Did Domino’s just say they will award points for eating any pizza? Even from a competitor?’ You read that right; oh yes we did!”
- For the Love of Pizza: Domino’s to Offer Rewards Points for Any Pizza – Even Competitors’ – Domino’s/PRNewswire
- Domino’s plans to grow its customer base and ‘overall pizza category’ with new giveaway: CEO – CNBC
DISCUSSION QUESTIONS: Will Domino’s Points for Pies program prove successful in converting large numbers of customers from rival pizza sellers to its own? What do you see as the strength/weakness of the Points for Pies rewards program offer?