About Domino’s
Founded in 1960, Domino’s is an American multinational pizza restaurant chain that serves over 1 million customers every day across more than 19,500 stores in 90+ international markets. While pizza is its primary product, the company’s menu is curated for different regions. From bread bowls, oven-baked sandwiches, and pasta to beverages and desserts, Domino’s revels in offering delicacies with local flavor to attract niche groups of customers on a global scale.
To boost online orders through the brand’s owned channels — website and mobile app — Domino’s uses a multi-pronged marketing strategy that consists of various platforms and offers. It uses online and offline ads, email and SMS marketing, influencer marketing, partnerships, and even meme marketing to promote its brand. In Indonesia, Domino’s aimed to drive more mobile app installs and increase repeat purchases by offering a seamless user experience.
Challenge
Indonesia is a super-app-dominant market. Super apps condense multiple offers and services into a single app that customers can use instead of using many different apps. For instance, apps like Zomato and Careems (in United Arab Emirates) allow customers to choose from multiple restaurants instead of downloading apps for each one of them. While these super apps act as collaborators and help customers place orders online with Domino’s, they also presented as a competitor when it came to user app adoption, installs, and in-app purchases.
Like many quick service restaurant brands in the industry, Domino’s Indonesia faced lack of control over user experience when customers ordered via food aggregators. One of its top priorities was to deliver a seamless user experience and keep customers engaged so they could boost brand affinity. Then, when customers were ready to make a purchase, they could head to the three-screen Domino’s mobile app to order food.
But Domino’s Indonesia was driving a significant percentage of online sales from super apps. It also wanted to cut back on its high customer acquisition cost (CAC) while driving users directly to the mobile app.
To do this, it wanted to leverage its strong operations in over 200 stores across 34 cities and bridge the offline-to-online gap. In addition, it needed a way to personalize user experience at scale and target users at the right time based on their location to fulfill its promised quick delivery.
Domino’s also expanded its sales via affiliates and were experiencing fraudulent activities that caused misattribution in campaign results.
With all these different challenges and goals in mind, Domino’s Indonesia needed to accurately route users from multiple platforms to its mobile app and ensure a smooth user experience to get repeat purchases.
Solution
Domino’s Indonesia used Branch Engagement across their campaigns to drive new users to their mobile app. By integrating Branch’s deep links and QR codes, Domino’s helped users connect from different platforms — offline and online — to its mobile app where they could seamlessly place an order.
Driving users to the Domino’s mobile app meant fewer distractions for their audience compared to super apps where they were constantly bombarded with other restaurant offers. This helped Domino’s drive better, more focused engagement.
In addition, integrating deep links across their channels helped Domino’s ensure it not only promised an attractive offer, but optimized app conversions while increasing revenue, lifetime value (LTV), and significantly reducing CAC.
The brand recently launched #DominosAppAja, under which it heavily promoted pizza for only 7,500 IDR* and offered a 50% discount to new users. Using Branch, Domino’s Indonesia ensured that users were routed to the correct destination, claimed the new user promo, and made a purchase.
Below is an example of how Domino’s Indonesia used Branch’s QR codes across its stores for the #DominosAppAja campaign to drive new users to their mobile app.
To enhance personalization and deliver accurate ads to their existing customers, Domino’s Indonesia and Branch strategically segmented existing customer behavior and their respective offer interest in different ad sets. They also targeted look-a-likes of these segmented customers with only promotions that suited the customers. This directly resulted in higher conversions from their ads. Domino’s Indonesia also enhanced accurate and timely ad delivery.
Because each Domino’s Indonesia store has a defined territory and can take orders only from within that area, it’s important for the brand to target highly specific regions for ads to ensure timely delivery. They also need to personalize their message based on the users’ location.
With Branch, Domino’s Indonesia is able to precisely target customers in geo-specific regions to further amplify user experience and keep up their 30-minute guarantee — a 30-minute delivery or one free pizza voucher.
The brand again partnered with Branch when they launched new stores in new cities. Using a similar targeting strategy to acquire new customers in geofenced regions, Domino’s Indonesia ran eight weeks of promotions. Once again, they segmented campaigns for both upper funnel and lower funnel by selecting a surrogate store, city, or area with similar attributes to the new stores in terms of population, income level, gender mix, etc.
These eight-week campaigns resulted in higher awareness, optimized cost, efficient return on ad spend (ROAS), and higher conversion. Domino’s Indonesia also observed a best-in-market cost per revenue (CPR) at 13% while ensuring a seamless ordering experience for customers.
The graph below depicts the quarter-by-quarter growth of new users on the Domino’s Indonesia app versus new users from all channels after partnering with Branch.
In a nutshell, Domino’s Indonesia’s ability to target hyper-personalized audiences with custom messaging resulted in an overall decrease in CAC.
Domino’s Indonesia also partnered with affiliates to acquire more customers and run remarketing campaigns using Branch solutions. Earlier, their affiliate programs were prone to errors and fraud, which impacted attribution for different campaigns and distorted ad spends.
Branch helped Domino’s Indonesia overcome their affiliate challenges and enabled the team to see accurate, reliable data from their campaigns. Now, Domino’s Indonesia can attribute all in-app, down-funnel events back to specific affiliate campaigns at a user level. This way, they can easily analyze the quality of acquired users through affiliate marketing and prevent fraud or skewed attribution in their cross-platform marketing strategy.
Branch’s unique, cross-platform scale offers the breadth and depth of data needed for a scalable detection model based on machine learning. Branch’s constantly advancing proprietary algorithms helps Domino’s Indonesia dynamically block attributions on browsers and devices that exhibit suspicious behavior across Branch’s platform.
Results
With Branch, Domino’s Indonesia achieved their mission of delivering a seamless user experience. At the same time, they expanded nationwide and revamped their affiliate marketing strategy through Branch’s machine learning detection models.
More new users are using the Domino’s Indonesia app to place their orders online. Domino’s Indonesia has had 29% new user growth on average each quarter since Q1 2021. They’ve also had clear visibility into each of their marketing channels. This allows them to analyze high-performing platforms and double down on those to maintain the desired CPR.
By partnering with Branch, Domino’s Indonesia reduced their CPR by half after the geofencing setup changes for targeting. They’ve maintained a strong range of 10% to 20% CPR in the past six months.
