Domino’s Pizza CEO Excited About New Loyalty Program

Domino's Loyalty ProgramDomino’s Pizza CEO Patrick Doyle is very optimistic about the company’s recent launch of a new loyalty program. During his comments from Thursday’s third-quarter earnings conference call, Doyle said the loyalty program just rolled out nationally in the fourth quarter.

“After thoughtful planning and testing, we announced our first nationwide loyalty program early in the fourth quarter,” Doyle said, according to Seeking Alpha. “Both the intent and execution are simple. Sign up order online or via mobile app and start earning points toward free pizza. We’ve seen what loyalty programs do for customers across many different industries and it was time for us to get in the game. We expect to drive order frequency and connect with customers through our unmatched digital experience. We wouldn’t roll it nationally if we didn’t think it was going to be a positive contributor to our success going forward.”

Doyle said he’s most excited about the simplicity of the new loyalty program.

“So basically you get 10 points for every order of over $10,” he said. “It’s very simple and customers understand this and we have seen how it can affect other brands. We’ve done a lot of research on this in designing it and obviously we’re optimistic about it or we wouldn’t have rolled out nationally. Fundamentally, six orders over $10 get you a free medium pizza. One of the things you learn from research on loyalty programs is they can get very complicated and you lose customers when they get too complicated and so this is very simple. It’s transparent. People understand what they need to do.”

Domino’s Pizza, as a business and brand, continue to thrive as a top performer in the industry.Domino's digital experience

“Franchisees, both domestic and abroad, continually impress me with the way they meet the challenge of sustained success as they continue to pile up points from the scoreboard,” Doyle said. “I believe the fundamental strength of our business is the foundation of our success, despite some of the headwinds we faced this quarter. In fact, we were able to take those hits better precisely because we are growing so strongly. I am proud of our results and our continued product and technology innovation. Our strategies are working, fundamentals continue to strengthen, and the results and returns to shareholders speak for themselves.”

Doyle noted that the third quarter marked the 18th consecutive quarter of positive same-store sales in the U.S.

“Technology is now an absolutely critical part of our brand and an undeniable element of what Domino’s stands for,” he explained. “We don’t just talk about innovating, it’s generating real results. And for the second time this year, we are using national television to promote a technology-driven message. We are seeing the positive impact of our online pizza profiles. In just over two years since the launch, 40% of our digital users have now created a profile and are able to use its many benefits, including easy order, saved order, payment information, and now our loyalty program. So continuing the theme of keeping the momentum going especially within the technology space, we are proud of our position as a digital leader.”

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