Domino’s Foursquare Rewards Promotion Helped Boost Revenue By 29%

During its financial earnings report, Domino’s UK praised the use of social media campaigns together with an innovative Foursquare rewards promotion for helping the pizza chain increase revenues by 29%, or an extra $26 million.

Following in the footsteps of Starbucks, who recently launched a similar promotion, Domino’s began offering free pizzas to mayors on Foursquare, and even free side dishes for those who check in and spend more than $14.50.  The company ran a pilot program earlier in the year throughout the UK which proved successful enough to expand nationwide.

The promotion was unique in that Domino’s encouraged patrons to check-in at their locations, even though none of them offer dine-in services.  Looked upon as a way to drive foot traffic into their locations, the promotion did drive pick-up orders and helped eliminate costs associated with delivery, as well as offer a viral effect when a user would check-in at a Domino’s location and all their friends would be exposed to the domino’s brand.

Together with its Foursquare promotion, Domino’s has recently launched several unique social media, Online-based and affiliate marketing promotions to help drive revenue, and the company is convinced it’s the way of the future for reaching out to and engaging consumers.  The company said its Facebook site now has over 36,000 fans, and Online ordering now accounts for roughly 32.7% of all orders- proving their Web-based initiatives are paying off as well.

It’s good to see large companies like Domino’s not afraid to try their hand at up-and-coming marketing concepts like Foursquare rewards promotions.  The company is mixing mobile marketing with social media and Online marketing to engage consumers on all relevant levels, and it’s paying off in terms of revenue growth.  Campaigns like this prove the growing importance and effectiveness of strategic LBS-based marketing, especially for local brick and mortar businesses.