Domino’s UK Grows Sales 29% with Social Media
With all of the talk of social media there are still people who are not believers in how it can really benefit your business. They say show us real results. Well here are some real results of a brand doing just that. Domino’s didn’t do it with massive ad buys or expensive marketing. They did it primarily with Facebook and Foursquare. If you want to increase your sales, you need not look further than what the biggest competitors in your market are doing. They spend thousands upon thousands of dollars testing marketing methods and now you can see that their most successful profit increase came from free social media tools.
Domino’s Pizza has reported a 29% surge in pre-tax profits to £17.5m, buoyed by a strong performance from e-commerce sales and attributed its link-up with Foursquare as key to its recent performance.
The takeaway company reported a like-for-like sales increase in 553 stores by 13.7% in the 26-week period to the end of 27 June this year.
Domino’s now has 627 stores in the UK after 19 new stores were opened in the period. The company said it was on track for a further 55 store openings this year.
The group – which is celebrating 25 years of business – highlighted its e-commerce business as the stand-out performer.
It said sales in its e-commerce unit had grown by 61.4% in the period and that online sales now accounted for 32.7% of overall UK delivered sales. In the earnings statement, CEO Chris Moore points to the rise in online orders — which now account for 32.7% of all orders — as proof that their web and social media efforts are paying off.
Moore reports that when it comes to the web, “Our main Facebook (Facebook) site now has in excess of 36,000 fans … In addition, we have led the way with social media initiatives such as affiliate marketing, our superfans programme and the development of a link up with Foursquare.”
Moore concludes that, “all of these web-based activities offer a dual benefit of driving pizza sales online and building customer loyalty.”
In May this year, Domino’s launched a nationwide promotion on Foursquare that encourages users to check-in at its outlets.
In today’s financial results Domino’s said it had “led the way with social media initiatives such as affiliate marketing, our superfans programmes and the development of a link up with Foursquare, the location-based social media site”.
It added that its web-based activity had afforded it the dual benefit of “driving pizza sales” and “building customer loyalty”.
Can you replicate these results? Absolutely and we would go so far to say that your pizza and menu is better tasting than Domino’s no matter what their new commercials say. Combine better food, a solid social media strategy combining Facebook, Foursquare and building your own list of rabid fans through text marketing and your sales will grow no matter the economic climate.
Read the original article here. Domino’s UK earning statement here.
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Elbert Kosek7:16 am on August 12th, 2010
This is a good example of adapting to the new marketing requirements. Internet and mobile marketing prove to be more effective than traditional methods.
Jay12:35 am on August 13th, 2010
That is a very concrete proof that Social Media can give great results. I reckon that Domino’s UK is not alone, I’m sure a lot of businesses have increased their sales because of Social Media-based marketing schemes.