Restaurants

How a Domino’s Franchise Got Their Cost Per Acquisition Down to 15 Cents

A Domino’s Pizza near the University of North Carolina at Charlotte serves 25,000 students.

25K

Person Customer Base

350

Coupon Redemptions From First Offer

25%

Coupon Redemption Rates Per Additional Offer

The Challenge: Boosting ROI from TV and Video Ads

Area Director Ryan Swanson wanted to increase revenue streams and engagement on social media platforms, particularly Facebook. But the pizzeria’s 30-60 second spots, airing on screens throughout the venue, appeared to only generate limited success.

[The problem was] most students are not going to jot down a website during a basketball game...But taking a couple of seconds to send and receive a text with the URL of the group makes sense.

Ryan Swanson, Area Director – Domino's

The Solution

Swanson tested his theory that SMS solutions would garner solid, measurable results with an initial ad he knew would be a loss leader. Advertising a Keyword and common-use short code during the TV spots, he offered free pizzas for opting-in to the Keyword subscriber list and joining the Facebook group.

By the following morning, 20% of attendees opted-in, showcasing a dramatic improvement in driving conversions — and nearly all redeemed the offer. Bolstered by this success, Swanson triggered a series of exclusive discounts and continued to see spikes in sales and opt-ins.

The Results

"The sales at the store...when we send text messages, or [use them to] drive people to Facebook are unprecedented," says Swanson.

For a mere $25 investment, the pizzeria saw an increase of 125 orders from a single text. With each additional ad, opt-in lists grew by 100-200 subscribers. Redemption rates for exclusive SMS promotional texts averaged 20-25%, significantly boosting profits and driving even more students to like the franchise’s Facebook page.

Over the course of the semester, the franchise spent just $125 on SMS marketing and was able to add an additional 850 text message marketing subscribers, making the Domino’s franchise cost per acquisition an amazing 15 cents.