Are Consumers Hungry for Domino’s New Loyalty Program?

by Mike Fishbein
February 6, 2019

With loyalty programs exploding in popularity across everything from fashion brands to coffee chains, it was only a matter of time before pizza companies went for a piece of the frequent-buyer pie. But are consumers hungry for loyalty rewards? We used Alpha to test pizza-lovers’ taste for Domino’s new program.

The pizza company introduced its “Points for Pies” program with a multichannel marketing campaign ahead of the Super Bowl. The new product rollout included feature enhancements to their app, which Domino’s, like many quick service restaurant brands, has been promoting to its customers.

The chain is asking consumers to take pictures of their pizzas with their phones. Domino’s program is unique in that those pies can be from Domino’s or a competitor. Users get points for each photo that is scanned by the app, and they get a free Domino’s pizza after collecting a certain number of points.

Successful brands know that it’s critical to understand the wants and needs of consumers before investing heavily in building new products or launching marketing campaigns. Product/market fit is crucial, and to test this new initiative, we used our on-demand insights platform to determine whether 300 U.S. pizza eaters and fast-food app users had an appetite for Domino’s new program.

Do users currently take pictures of their food?

The loyalty program requires that users snap pics of their pizzas, and unfortunately, only 26% of respondents said that they have taken photos of their food in the past.

However, things get interesting when you look at different slices of the fast-food user group. Diving deeper into the data, we find that 44% of 18-24 year olds and 43% of those aged 25-34 do, in fact, pictures of their food.

When we asked users what features of the app were least appealing and why, one user gave a blunt, albeit insightful, answer about the experience of taking pictures of food as compared to the benefits of saving money.

“Saving money and getting deals on pizza is more important to me than taking pictures of the pizza.”

What do users like and dislike about the program?

Despite a lack of interest in photo taking, the other features and value propositions proved pretty tasty to our user group, with 52% of respondents saying they are interested in the app.

Open-ended responses frequently focused on the value proposition of saving money. Here’s what one young user said:

“I love pizza. And being a broke college student, anything with free has my attention.”

While users generally seem less interested in taking food photos, the desire for free pies could be a strong enough reward to motivate users to start – giving Domino’s the benefit of app engagement, customer engagement, and some interesting data about what other kinds of pizzas their customers are eating.

Do you users like that any brand of pizza counts?

Domino’s loyalty app  is unique in that users can take pictures of any pizza, not just Domino’s. We ran a comparison test to see if users care about that feature and how they rank it in comparison to the other features of the app. The results show that while saving money is the most important value proposition, but the fact that any pizza counts towards promotions was a close second.

When we asked users what they found most appealing about the app, one user said:

“The App allows you to get points just for eating Pizza, whether it’s Dominoes, Little Ceasar’s, or another company’s pizza. It doesn’t matter. Once you have gained a certain amount of points, you get a pizza from Dominoes.”

Based on these findings, it seems that with some iteration on positioning and user experience, Domino’s could have a big hit on their hands.

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Mike Fishbein

Mike is the Host and Producer of This is Product Management, Alpha’s podcast, and the Editor of Product Management Insider, Alpha’s Medium publication.