Did you know Domino’s stock outperformed Facebook, Google, Amazon, and Apple from 2010 through 2017? Their success over that time period is typically attributed to two things:
  1. They launched the Ad Campaign where they took customer feedback, completely revamped their pizza, then delivered the new pizzas to previously unhappy Domino’s customers. This was called The Pizza Turnaround
  2. The second reason is not highly publicized but critically important. Domino’s was one of the first companies to create a Customer Data Platform. They created their own Customer Data Platform before 99% of marketers even knew what a Customer Data Platform was. Kudos Domino’s…
Fast-forward to the Super Bowl this year. Domino’s announced that they will give you 10 pizza reward points just to upload a picture of any pizza to their app. This really begs the question, what will they use those pictures for? Why give points away for purchasing other types of pizza? At face value, Domino’s says they want to reward you for eating all pizza. You can earn a free Domino’s pizza just by ordering pizza from other companies.
Seems simple right? Wrong… let’s talk about the customer data collected and the personally identifiable information.
First, when you register for the Domino’s app, you have to do it with a name, e-mail, phone number and it even asks you to share your location. This information goes straight into their Customer Data Platform and begins to build a record for each person.
Now, let’s talk about the pictures. When a user uploads a picture of a pizza to the app, Domino’s is running image recognition software to recognize data points about your eating habits. Below I’m going to throw out 5 assumptions about what will happen when you upload pizza images to the Domino’s app.
  1. Type of Pizza
    1. First, they will figure out the kind of pizza you like. Maybe you love Hawaiian Pizza, or you’re a Meat-lover fan. Domino’s is going to take that data and use it to personalize offer and ads to you ensure they are showing you ads with the types of pizza you love.
  2. Size
    1. Did you get a small, medium or large? Thin Crust or Deep Dish. The size of the pizza may tell Domino’s how many people you’re eating with, or how big of an eater you personally are.
  3. Where it is from
    1. With a sampling of just 1.75M pizza uploads, Domino’s will be able to make statistical assumptions that will be 95% accurate about the Pizza market share in the US. It may be slightly skewed because people who eat Domino’s will be more likely to use the app but Domino’s will get a pretty good understanding of the Pizza market share in the US. If I were a Domino’s competitor right now, I would be shaking in my boots. With just a fraction of the entire population, Domino’s will know who/how to target their competitors’ customers. Pizza Hut, Papa John’s, Hungry Howie’s, feel free to call us 🙂
  4. Time of Day
    1. By assigning the Time of Day which you order Pizza to each customer record, Domino’s will know when to target each user based on the time of day they are most likely to purchase an ad. I, personally, eat early and am typically in bed by 10 pm. Were I to upload a Pizza, Domino’s would know the time of day that I typically eat and would be able to put me into a group where they advertise to me for early dinner specials. For those who frequently order late night pizza, the messaging and time of day for ad delivery by Domino’s would be completely different.
  5. Location
    1. By using your location, Domino’s will know where you are when you typically get Pizza. Are you at an office? Or, at home with your family? At the park? Once your location is documented Domino’s may know that certain users are more likely to eat pizza in certain places. Domino’s could use this information again to personalize and offer you a family dinner deal!
The real question here is how do you feel about this? Are you OK with a company tracking this information and creating a much more personalized relationship with you? I’m certainly a believer in it and hope that Domino’s will use our data in a responsible way.
At Transitiv, we’ve built a Customer Data Platform for Franchises that allows franchise brands and auto dealers of any size and in any industry to use data in the same way as Domino’s. Customer Data Platforms have historically been too expensive for SMBs and we’ve changed that to help level the playing field for SMBs against the major players. Call us to learn more!