dominos digital strategy innovation cx bold move

CX Bold Moves: Domino’s Making the Right CX Choices

Domino’s Pizza made two CX bold moves – changing a nearly half-century old recipe and committing to digital innovation. These moves are translating into more sales and more engaged customers.

The pizza giant is placing a big bet on digital and customer experience and following through with a strategic execution. 50% of Domino’s orders are digital and two thirds of them are through mobile devices. Achieving such a meaningful channel shift is not easy (or cheap). The payoff – increased sales and revenue – makes it worthwhile. Last year Domino’s CEO Patrick Doyle told CNBC the strategy is not demonstrating impactful cost savings, but improved customer experience is driving sales up.

Thinking Beyond the Phone

Domino’s incorporated Alexa and Goggle Home as ordering channels. The in-home connected devices are a significant part of the Domino’s voice strategy to create customer experiences that drive sales. Similar to JetBlue, Domino’s believes that future customer interactions with brands will be completely digital and not tied to devices like phones. JetBlue’s facial recognition product does not require customers to have any paper, or a phone, to board a plane. Similarly, Domino’s is building the ability to order pizza using only your voice.

Going Outside the Home

After listening to customers say they want to get pizza delivery on the beach or at a game, Domino’s announced its plan to deliver pizza anywhere their customers are. The brand took a customer need and built a product around it – a smart CX move executed in a bold way.

Dennis Maloney, Domino’s CTO, stated that this product is not a case of discovering new technology. Rather, it is an example of a new use of existing technology – this is exactly how we define innovation! Of course, there are caveats around the current version of the product. The delivery spots are pre-defined and not available everywhere. But that is not really the point. The point is that Domino’s stock has gone up 5000% since 2008 based on a new recipe and this kind of digital transformation. The brand put the customer’s needs and desires at the center of its product design and it is winning, big time. It is a great CX story to move from a tweet like “worst pizza I’ve ever had” to ordering pizza on Twitter using just the pizza emoji.

Making Hard Choices

Delivering an item to customers where and when they want it satisfies a standard customer experience need, but it is complex to accomplish. Brands like Amazon and Zappos grew their customer bases on that basic offering alone. But Domino’s is not just perfecting delivery with this strategy. The brand showed the strength to throw away a 49-year-old recipe. Many brands can’t manage to make a transformation like that, and suffer the consequences (see ToysRUs and so many others). In Shift Ahead, Allen Adamson talks about how National Geographic magazine died from its refusal to acknowledge the digital trend and shift to other channels. The book also covers Playboy’s inability to reinvent when times changed. Both brands did not move fast enough and fell into oblivion.

Domino’s shifted. Domino’s made the big bet on CX. For those of us working in customer experience, this is an impressive – and inspiring – move from strategy to execution. Building hot spots and a customer journey around those hot spots is neither easy nor cheap. If it pays off, Domino’s will have created an entirely new customer segment that does not exist today.

Now that is genius. Creating a new product, and a new industry/business segment? We’re witnessing the ultimate shift to the future.

 

 

 

*All opinions expressed on the DoingCXRight Blog and site pages are the authors’ alone and do not reflect the opinions of or imply the endorsement of employers or other organizations.

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