DIGITAL TRANSFORMATION

Domino's Pizza, how Direct Mail Tops off an Amazing Online Strategy

The Domino’s Pizza chain which is headquartered in Brisbane is one of the most technically advanced food delivery businesses in Australia which is using its database platform to better target the use of its direct mail strategy. 

Yes, direct mail, that relic of only a decade ago still has cut through and with the use of unaddressed mail provides an ability to be able to market far and wide. 

Effectively once a customer makes an order, those details allow the company to have an address with direct mail out to what potentially is a repeat customer. 

The mail strategy which is initially designed to attract customers complements a marketing push where the customer will not only receive digital promotional material but is likely to have a directly addressed mail promotion which according to Dominos delivers a 6-8*% return on investment.

Domino's was one of the first major online adopters within the industry in 2005 which stands in stark contrast to bigger competitors such as McDonalds whose reliance on the likes of Uber Eats reveals a late adoption to an increase in online food ordering. 

For more than two decades, Dominos has combined the effectiveness of direct mail in combination with online advertising and ordering. Essentially the learning here is why not leverage the strengths of both advertising mixes. 

In 2020, online orders account for 50% of total sales for Dominos which has been built upon an online platform through the company’s app and postal strategy is built on the group’s key sales bracket which is males 18-39.

Interestingly the open rate of direct mail within this group is according to Australia Post have rates of 80% which is superior to the likes of the online email campaigns where the open rates of such messages are lucky to achieve a 20% open rate. 

Again, the research conducted by Australia Post provides a fascinating insight into the preferences of residents when receiving mail. 

Source: Australia Post, Brisbane West Chamber of Commerce, October 2020

The mail strategy which is initially designed to attract customers complements a marketing push where the customer will not only receive digital promotional material but is likely to have a directly addressed mail promotion which according to Dominos delivers a 6-10% return on investment.

To read the case study in full, please see the link here.