Domino's delivers on digital

23 June 2015

Domino's

Brisbane-based Domino’s Pizza Enterprises Limited (DPE) is a shining example of an ASX-listed company that has benefited its bottom line by making a true digital transition. 

Australia’s largest pizza chain has undergone a massive transformation by embracing the digital age. In 2005, its Australian digital sales volume was just 1 per cent, while today it is almost 60 per cent, with mobile phone orders making up half that volume. 

Domino’s Group CEO and Managing Director Don Meij, who started in the industry as a delivery driver, said the company was being rewarded for taking a calculated risk in its digital strategy. 

“Any significant business decision has an element of risk involved,” Mr Meij said.

“When you’re trying to create market firsts and change a customer’s perception, you introduce a greater level of risk – but without risk there is no pay-off.

“If a company is in tune with its customers, the market and the direction it’s headed, the risks are much more calculated and significant growth and enhanced customer experiences can be the result.”

The company recently announced its latest digital offering with the launch of its GPS Driver Tracker, a platform allowing the customer to track every stage of their purchase, from making the order to the knock on their door. The development has seen the creation of more than 3000 new jobs across Australia. 

Mr Meij will clock up 30 years in the pizza industry next year and Domino’s is extremely proud of its Brisbane origins. In 2013, the company took out the award for the Digital Champion at the Lord Mayor’s Business Awards

“We entered the Digital category of the Lord Mayor’s Business Awards because we really wanted to help Brisbane as a city showcase some of the incredible digital work that has been created right here in Brisbane and exported around the world,” Mr Meij said. 

“The Domino’s digital platforms that were judged in the award category in 2013 have now been rolled out into our markets including Belgium, France and The Netherlands with great success.”

It’s those digital platforms that have seen Domino’s achieve milestones internationally. In Japan, online orders account for 50 per cent of Domino’s sales volume, while in Holland it’s 45 per cent, and 30 per cent in France.  

It’s no secret that a digital strategy requires a costly leap of faith which sometimes has many detractors. But the Domino’s strategy, which includes apps for Apple and Android, a strong Facebook presence and a mobile ordering site enabling sales from any internet-enabled device, is paying dividends. 

The share price is up 36 per cent since January after the company delivered a 28 per cent half-year net profit in February. 

But Mr Meij has been in the business long enough to know it’s not always rosy, and it will be paramount to continue delivering what the customer wants, across the right platforms with the latest technology. 

“In my opinion, the key to a good strategy is building customer loyalty – and digital is no different. Whether it’s allowing customers the freedom to order how and when they want, all the way through to world-first concepts such as Pizza Mogul which rewards customers and their friends for ordering more frequently, customer loyalty through differentiation is an integral part of our business and digital strategy,” he said.

“There’s a lot of different things we do to empower people, including taking a group of selected executive members and team managers to Silicon Valley at least once a year to meet with both small start-ups and some of the biggest disruptors in the industry to help challenge the way we think and encourage us all to push the boundaries.”

Domino’s Pizza Enterprises Ltd holds the exclusive franchise rights for the Domino’s brand and system in Australia, New Zealand, France, Belgium, The Netherlands, and Japan.

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