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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.

Join the 160,000 customers who have used SMS marketing to connect with their audiences.