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Domino's Strategy: From Pizza to Tech Giant // Customer Value Series

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Domino’s has been seeing double digit growth for several consecutive quarters. The pizza chain has been outperforming giants such as Google or Facebook on the stock market.
What contributed to the success of this company, once simply known for bad pizza? How did the brand harness technology to embed itself into the lives of its customers by delivering a better experience?

Take a look at our report where we provide some background on Domino’s and explore their Customer Value Proposition using our CVP Canvas to identify the brand initiatives around product innovation, added-value services, shopping experience, and communication that contributed to a new success.

Published in: Marketing
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Domino's Strategy: From Pizza to Tech Giant // Customer Value Series

  1. 1. UNDERSTAND TODAY. SHAPE TOMORROW. LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT the latest instalment of our: Customer Value Series DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  2. 2. ABOUT. INTRODUCTION UNDERSTAND TODAY. SHAPE TOMORROW. 2 UNDERSTAND TODAY. SHAPE TOMORROW. Discover Define Develop Deliver At LHBS, we believe that brand or business strategies need to be prescriptive not just descriptive. A strategy needs to drive action through meaningful Customer Value Propositions. That’s why we work with our Customer Value Proposition Canvas as a navigation system for bringing strategy to life. We’ve created the Customer Value Series to analyze and share how leading companies bring their Customer Value Propositions to life through their core products, added value services, the customer journey and communication. This issue highlights Domino’s - a pizza-making company that is on a clear path to becoming a tech giant. We hope you enjoy this deck and are able to be inspired by it in your innovation process. INTRODUCTIONLHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  3. 3. UNDERSTAND TODAY. SHAPE TOMORROW. INTRODU CTION. Domino’s has been seeing double digit growth for several consecutive quarters. The pizza chain has been outperforming giants such as Google or Facebook on the stock market. What contributed to the success of this company, once simply known for bad pizza? How did the brand harness technology to embed itself into the lives of its customers by delivering a better experience? Take a look at our report where we provide some background on Domino’s and explore their Customer Value Proposition using our CVP Canvas to identify the brand initiatives around product innovation, added-value services, shopping experience, and communication that contributed to a new success. LHBS THE UNCONVENTIONAL STRATEGY FIRM. We help companies to understand emerging customer needs & expectations and shape business models, brand strategies and customer experiences to unlock future growth. http://www.lhbs.com Fabiola Lewandowska Consultant at LHBS lhbs.com | fl@lhbs.com INTRODUCTION 3 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  4. 4. CONTENT. UNDERSTAND TODAY. SHAPE TOMORROW. CUSTOMER VALUE CANVAS CONCLUSIONS & IMPLICATIONS ABOUT DOMINO'S CONTENT 4 Chapter 1 Chapter 2 Chapter 3 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  5. 5. UNDERSTAND TODAY. SHAPE TOMORROW. 5 ABOUT DOMINO'S Chapter 1 Quick facts about the company and its growth LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  6. 6. UNDERSTAND TODAY. SHAPE TOMORROW. DOMINO’S IS… … second largest pizza chain in the world … present in more than 80 countries … in 130 000 locations … boasting a $160 share price ABOUT DOMINO’S 6Source: Harvard Business Review LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  7. 7. UNDERSTAND TODAY. SHAPE TOMORROW. VISION. NO. 1 IN PIZZA NO. 1 IN PEOPLE 7 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S Source: Domino’s
  8. 8. UNDERSTAND TODAY. SHAPE TOMORROW. MISSION. SELL MORE PIZZA HAVE MORE FUN 8 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S Source: Domino’s
  9. 9. UNDERSTAND TODAY. SHAPE TOMORROW. VALUES. • Treat people as you'd like to be treated • Produce the best for less • Measure, manage and share what's important • Think big and grow • Incentivize what you want to change • Set the bar high, train, never stop learning • Promote from within • We are not ordinary, we are exceptional 9 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S Source: Domino’s
  10. 10. UNDERSTAND TODAY. SHAPE TOMORROW. IN 2009… 10 Domino’s was well known for “cardboard-like consistency”, and in one taste test was described as “being on par with pies served at Chuck E. Cheese” Source: QUARTZ LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S
  11. 11. UNDERSTAND TODAY. SHAPE TOMORROW. NOW… 11 Domino’s has a market cap of around $9 billion propelled by its new pizza recipe and menu items such as chicken wings and salads Source: QUARTZ LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S
  12. 12. UNDERSTAND TODAY. SHAPE TOMORROW. DID YOU KNOW? 12 Domino’s share price growth has been outperforming leading tech companies such as: for the past 10 consecutive years Source: QUARTZ LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S
  13. 13. UNDERSTAND TODAY. SHAPE TOMORROW. REPORT TITLE // IMPLICATIONS. UNDERSTAND TODAY. SHAPE TOMORROW. Only one company has been growing almost as fast as Domino’s in the recent years: Netflix 13Source: The Atlas LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S
  14. 14. UNDERSTAND TODAY. SHAPE TOMORROW. REPORT TITLE // IMPLICATIONS. UNDERSTAND TODAY. SHAPE TOMORROW. Domino’s has been continuously working on their Customer Value Proposition over the past several years, investing in innovations that bring the best experience & value to their customers 14 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S
  15. 15. UNDERSTAND TODAY. SHAPE TOMORROW. REPORT TITLE // IMPLICATIONS. UNDERSTAND TODAY. SHAPE TOMORROW. As a result, Domino’s has gradually changed their business model from a pizza-maker to a delivery and tech company 15 From to & LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S Source: Harvard Business Review
  16. 16. UNDERSTAND TODAY. SHAPE TOMORROW. REPORT TITLE // IMPLICATIONS. UNDERSTAND TODAY. SHAPE TOMORROW. “We are as much a tech company as we are a pizza company” 16 J. Patrick Doyle, CEO of Domino’s LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S Source: Harvard Business Review
  17. 17. UNDERSTAND TODAY. SHAPE TOMORROW. REPORT TITLE // IMPLICATIONS. UNDERSTAND TODAY. SHAPE TOMORROW. Out of 800 people working at Domino’s headquarters, 400 work in software and analytics 17 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S Source: Harvard Business Review
  18. 18. UNDERSTAND TODAY. SHAPE TOMORROW. REPORT TITLE // IMPLICATIONS. UNDERSTAND TODAY. SHAPE TOMORROW. Explore Domino’s Customer Value Proposition and see how they deliver value through their products, added value services, shopping experience and communication. 18 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S
  19. 19. UNDERSTAND TODAY. SHAPE TOMORROW. 19 CUSTOMER VALUE CANVAS Chapter 2 Domino’s initiatives LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  20. 20. UNDERSTAND TODAY. SHAPE TOMORROW. The better a company manages the interrelation between their products, services, experience and communication, the more value it will create for its customers and in turn, generate value from its customers. CUSTOMER VALUE CANVAS 20 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  21. 21. Customer Value Canvas® CORE PRODUCT How might your Customer Value Proposition inspire or impact the performance or quality of your core product? ADDED-VALUE SERVICES How might your Customer Value Proposition inspire or influence additional services to simplify or enhance that create added value around the consumption or usage of your product? COMMUNICATION & TOUCH POINTS How might you create communication that 
 delivers your Customer Value Proposition and 
 not just promises it? SHOPPING EXPERIENCE How might your Customer Value Proposition inspire a smoother, more pleasant customer experience in your omnichannel touch points. CUSTOMER VALUE PROPOSITION A clear, concise and compelling articulation of how the needs that are important to the customer are satisfied by the company / business unit. Designed for: Designed by: Date: Version: This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. How does Domino's facilitate and deliver services that enrich and simplify the lives of their customers around their core product? Which products does Domino's create? How does Domino's solve real customer problems with their product design? How is Domino’s growing their core capabilities of being a market place? How does Domino’s make searching for, ordering and interacting with their products & services a uniquely positive experience? What kind of content does Domino’s create that leads people to enjoy consumption and sharing, rather than wanting to escape the advertisements? LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS
  22. 22. LHBS Put the Title of the Report here HOW TO. UNDERSTAND TODAY. SHAPE TOMORROW. 22 DOMINO’S CUSTOMER VALUE PROPOSITION. Customer Value Proposition Mealtime solution for the digital age that is “feel good”, fast, seamless and easy. LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS
  23. 23. UNDERSTAND TODAY. SHAPE TOMORROW. 23 CORE PRODUCT Which products does Domino’s create? How is Domino’s growing their core capabilities of being a market place? LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS
  24. 24. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Pizza! And more For years, Domino’s has stuck to their core propositions Explore website Depending on the geographical location, Domino’s offers mainly pizza, but also pasta, salads and other dishes. The chain also offers an array of sides and desserts to choose from. 24 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS
  25. 25. UNDERSTAND TODAY. SHAPE TOMORROW. 25 ADDED-VALUE SERVICES How does Domino’s facilitate and deliver services that enrich and simplify the lives of their customers around their core products? LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS
  26. 26. UNDERSTAND TODAY. SHAPE TOMORROW.Source: School Lunches Since 2014, the pizza-maker has been active in American school's healthy eating programs Explore sign The Domino’s Smart Slice was designed to help school children improve their nutritional intake whilst also empowering schools to use healthier ingredients. The pizza slices served at Smart Slice schools are enhanced with vitamins and minerals as well as 100% lite mozzarella, 51% whole-wheat white flour and a sodium level 35% lower than your average pizza.  The program rewards schools and students by giving away cooking materials, gift vouchers and merchandise on a points basis. The pizzas are all made fresh at the school, using raw ingredients provided by Domino’s. 26 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS
  27. 27. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Domino’s Weddings Domino's have added a gift-registry service for pizza-loving newlyweds Explore sign The wedding packages include on-the day pizza delivery for ‘The Wedding Night’ for those who didn’t eat enough at the reception, ‘Thank-You-Card-A- Thon’  for those late nights spent writing all the ‘thank you’ cards and ‘Low-Key Date Night’. It’s easy to register and you just need to let your guests know which pizza packages you would like by sharing it on social media using a custom URL, or having your guests register through www.dominosweddingregistry.com  27 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS
  28. 28. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Smart Track My Pizza Anxious for your pizza? Don’t worry, you can track it! Explore sign Since its launch in 2008 Domino's have given customers the possibility to track their much desired Domino's pizza. By registering your phone number you will be signed up to the tracking service and will be alerted to every step of the pizza’s process. Recently the anticipation and excitement around knowing exactly what is happening throughout each stage of the pizza’s delivery has inspired Domino’s newest commercial. 28 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  29. 29. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS IoT & Domino's The pizza-maker turned tech leader is converging Internet of Things (IoT) tech with its classic Pizza Tracker Explore sign The company IFTTT enables customers to connect their devices to Domino's trackers and IoT sensors in-store. Feeding through micro-sensory updates into customer's devices, Domino's pizza lovers can follow each step of their pizza making process, literally from dough to the door. For example, a customer can enable their phone to start playing "It's getting hot in here" as their pizza enters the oven or a customer could enable their outdoor lighting system to turn-on when the smart home device receives a notification that the pizza is out for delivery. 29 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  30. 30. UNDERSTAND TODAY. SHAPE TOMORROW. 30 SHOPPING EXPERIENCE How does Domino’s make ordering, shopping and waiting for their delivery a uniquely positive experience? LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS
  31. 31. SPEED OF ORDERING LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS -SHOPPING EXPERIENCE-
  32. 32. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Tweet to Order Pizza U.S. customers can simply send the pizza emoji to @Dominos to place an order Explore sign In this move, Domino's becomes the first chain in the American restaurant industry to use Twitter to complete an order. For Twitter, it is another stepping stone in the evolution of the social network in its metamorphosis from a place to chat to a place to advertise and buy things. 32 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  33. 33. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Domino's Pizza Launches Voice Ordering Domino’s announced that it’s launching a voice ordering feature in its iPhone and Android apps Explore sign The application is powered by Nuance’s Nina Mobile voice recognition, speech synthesis and natural language understanding technology. The company says the feature will provide “a human-like, conversational customer service experience that allows users to speak an order and quickly add items to their cart.” With the updated app, you’ll also be able to browse menus, coupons and navigate through the app using your voice. 33 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  34. 34. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Domino's "Easy Order" Button "Easy Order" is a quick "press to order" solution for those who want to get a pizza, instantly Explore sign The button is packed in a mini pizza box and you can pair it with a dedicated app via Bluetooth. You can save your address and payment details upfront so that pizza ordering is done with a push of a button, literally. 34 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  35. 35. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Order a Domino's Pizza in Zero Clicks American pizza chain Domino's introduced an app that allows customers to order a pizza with no clicks Explore sign The friction-free app works like this: users download the app and link it to a Domino's pizza profile, where they have a standard "Easy Order" saved.  When users open the app, it automatically orders the pizza, with no clicks required. There is a 10-second countdown window to cancel the order, in case the app was mistakenly opened. 35 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  36. 36. SPEED OF DELIVERY LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS -SHOPPING EXPERIENCE-
  37. 37. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Domino’s Pizza Oven Delivery Car Pimping pizzas in high-tech, efficient and pimped out delivery van Explore sign With 100 DXPs in production Domino’s will be able to deliver hot, fresh and fast pizzas, sides and sodas whilst advertising their brand via the attractive design of the DXP.  The Domino’s DXP or Delivery eXPert is fitted with a warming oven able to keep 80 pizzas piping hot. A section for side orders, two-litres of soda and dipping sauces. The only seat in this hacked Chevrolet Spark is for the driver, every other inch of this car is dedicated to a swish and fun delivery of pizza. 37 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  38. 38. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Robots to Deliver Pizzas Domino's are looking to automated delivery services Explore sign Robots are set to soon deliver to customers living within a 1 mile perimeter of their local Domino's store in Germany and the Netherlands. The robot should be able to hold around 8 pizzas or a combination of pizzas, sides and drinks. The maximum speed is 4 miles p/h and can carry about 20 pounds of product. To unlock their orders customers receive a code sent to their phone and retrieve their specially insulated Domino’s pizza.  38 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  39. 39. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Drone Delivery Domino's have successfully trialled a drone delivery in New Zealand Explore sign Two pizzas touched down in the north island town of Whangaparaoa, with the happy customers receiving their pizzas from a trial drone delivery. Domino’s has been working with drone company Flirtey to develop an aerial delivery method that could enable them to provide pizza to hard to reach locations.  Due to the air-borne method the pizza won’t be stuck in traffic so customers can expect the pizza within about 10 minutes of ordering. 39 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  40. 40. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Japan: Reindeer Delivery Domino's Japan gave Santa's little helpers extra work last Christmas Explore sign A gimmick over the holiday period didn’t end well for Domino’s new employees. After only one week of their Japanese Reindeer Delivery program they terminated the service as the training program had not been as successful as they hoped. Apparently the reindeer didn’t co-operate by shaking their antlers too much, refusing to stop at delivery points and dislodging the pizzas on their backs. However, these issues didn’t put a damper on the silly season, instead they have transformed their delivery scooters into reindeer-themed delivery scooters.  40 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  41. 41. ORDERING THROUGH THIRD PARTIES LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS -SHOPPING EXPERIENCE-
  42. 42. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Xbox Ordering Domino’s created an app for the Xbox One, allowing players to order a Pizza through the console Explore sign The app by Domino’s allows Xbox One players to order a pizza by simply pressing some buttons. Alternatively they are able to use their Kinect (motion sensing input device for Xbox) by either waving or using voice commands.  They can even track their pizza delivery whilst playing a game as it can display in “Snap mode.” 42 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  43. 43. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Order from Your Car A partnership between Domino’s pizza and Ford has produced the first in-car fast food app for simple, hands-free ordering Explore sign Customers with the Domino’s mobile app will be able to complete their order via a series of voice commands in their Ford vehicle via the Ford Sync AppLink. The aim was to reduce the number of steps to ordering, while keeping drivers as safe as possible when using the app while driving. This another step forward for Ford who continually aim to pursue industry leadership in vehicle telematics, and Domino’s to harness the power of technology to make them known for more than just pizza. 43 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  44. 44. UNDERSTAND TODAY. SHAPE TOMORROW. 44 TOUCH-POINTS & COMMUNICATION What kind of content does Domino’s create that leads people to enjoy consumption and sharing, rather than wanting to escape the advertisements? LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS
  45. 45. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Domino’s & X Factor Domino’s sponsored X-Factor’s app, offering users rewards at the pizza chain as well as branded games to become the number one choice on family entertainment nights Explore sign The app will include a link to a Domino’s “hub” where users can play branded games, and also get involved in the X-Factor judging, giving them the feeling they are the “fifth judge”. They will receive live updates on performances on the program and are able to make predictions of who will win at each stage of the competition. Users of the app will also receive personalized promotional codes for order discounts for successful gameplay, and can also interact with the brand via the hub. 45 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  46. 46. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS New Boxes Domino's iconic logo is now the main focus of the new pizza delivery boxes Explore sign Knowing that 96 percent of all Domino's pizzas are sold in pairs, the creative agency responsible for the redesign decided to make the logo pivotal to the design with one red box and one blue box.  46 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  47. 47. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Rewarding Foursquare Mayors Domino’s partnered with Foursquare, a location based platform to reward visitors to Domino’s outlets with free dishes Explore sign Users of Foursquare are dubbed “mayors” when they visit one location more than anyone else. Domino’s decided to reward their mayors with free pizzas once a week, and every regular Foursquare user who spends more than ten pounds at Domino’s received a free side dish. Those with the Foursquare app receive notifications when people they know “check-in” to locations, so the word would have spread! 47 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  48. 48. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Dough to Door Domino's iconic logo is now the main focus of the new pizza delivery boxes Explore sign To kick off the launch of their own Snapchat channel, Domino’s released a short film with hidden clues for viewers to get their hands on a discount code. The short film was named “Dough to Door”, and followed a Domino’s delivery driver as he encountered obstacles on his route to delivering the pizza - including an alien invasion. The film played for 24 hours as a Snapchat story, and random letters appeared throughout the film for viewers to piece together and form a discount code for an online order. 48 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  49. 49. UNDERSTAND TODAY. SHAPE TOMORROW.Source: CUSTOMER VALUE CANVAS Real-Time Customer Reviews Domino’s displayed customer reviews on a New York billboard in real-time, the good, the bad and the ugly Explore sign After focusing marketing efforts on a public self- improvement initiative, Domino’s then decided the key to really changing people’s minds about their turning point was to embrace transparency as a core value.  To mark this decision, they made a bold move to display real customer reviews on a digital Times Square billboard, live as they were received. This included good reviews, bad reviews and everything in-between - there was no editing of what was shown. 49 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  50. 50. UNDERSTAND TODAY. SHAPE TOMORROW. 50 DOMINO’S CVP SUMMARY LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS
  51. 51. Customer Value Canvas® CORE PRODUCT How might your Customer Value Proposition inspire or impact the performance or quality of your core product? ADDED-VALUE SERVICES How might your Customer Value Proposition inspire or influence additional services to simplify or enhance that create added value around the consumption or usage of your product? COMMUNICATION & TOUCH POINTS How might you create communication that 
 delivers your Customer Value Proposition and 
 not just promises it? SHOPPING EXPERIENCE How might your Customer Value Proposition inspire a smoother, more pleasant customer experience in your omnichannel touch points. CUSTOMER VALUE PROPOSITION Mealtime solutions for the digital age that is “feel good”, fast, seamless and easy. Designed for: Designed by: Date: Version: This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS Pizza, pasta, salads & more School Lunches Domino’s Weddings Smart Track My Pizza IFTTT & Domino’s Tracker Tweet to Order Pizza Voice Ordering Easy Order Button Order a Pizza in Zero Clicks Pizza Oven Delivery Car Delivery Robot Delivery Drone Reindeer Delivery Xbox Ordering Order from Your Car New Boxes Domino’s & X Factor Rewarding Foursquare Mayors Dough to Door - Snapchat Real-Time Customer Reviews
  52. 52. CONCLUSIONS & IMPLICATIONS What can we learn from Domino’s? UNDERSTAND TODAY. SHAPE TOMORROW. 52 Chapter 3 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CONCLUSIONS & IMPLICATIONS
  53. 53. ONE Digital tools can enhance the customer experience especially on the transaction level and drive the value delivered to the customer as well as value derived from the customer. UNDERSTAND TODAY. SHAPE TOMORROW. 53 Domino’s needed to get the basics right and “fix” their pizza which is what they did. The focus of innovation however was around customers’ emerging “on-demand” expectations for faster & better. By focusing on innovation in the end to end customer journey & integrating the power of digitalization, Domino’s increased repeat purchasing, drove customer satisfaction scores up and increased the value of digital orders by a 2:1 ratio. They managed to also amass vast amounts of customer data to boot. LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CONCLUSIONS & IMPLICATIONS
  54. 54. TWO Delivering customer value is a daily event. Smart companies think in terms of continuous “upgrades” and releases for service channels and tools. UNDERSTAND TODAY. SHAPE TOMORROW. 54 Domino’s focused on innovation to solve a problem but also invested in resources and a new mindset of Agile Innovation. Adopting the business practices of Silicon Valley Companies, Domino’s are continuously identifying new pain points and expectations and releasing new, incremental innovations on a regular basis. LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CONCLUSIONS & IMPLICATIONS
  55. 55. THREE Smart companies apply platform rather than linear business thinking as a means for continuous and sustainable growth. UNDERSTAND TODAY. SHAPE TOMORROW. 55 Domino’s transformed itself from a product company to a platform company not only through new technology, but also through new usage occasions, whether that be around social events as weddings or moments of content and entertainment consumption. LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CONCLUSIONS & IMPLICATIONS
  56. 56. UNDERSTAND TODAY. SHAPE TOMORROW. Discover ABOUT LHBS. Define Develop Deliver We are an unconventional strategy firm that helps clients to better understand today and successfully shape tomorrow. LHBS has extensive experience & expertise in business development, brand building and customer experience. The firm works across all major industries for clients from the FT Global 500, German Mittelstand and fast growing startups. http://www.lhbs.com ABOUT UNDERSTAND TODAY. SHAPE TOMORROW. 56 We work with legacy organisations to adapt their customer value proposition to meet emerging customer expectations. Together with our clients we discover business opportunities and deliver integrated customer offers for products, services, experiences and communication. http://www.lhbs.com LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  57. 57. LHBS Put the Title of the Report here HUB. UNDERSTAND TODAY. SHAPE TOMORROW. This case study has been created with the help of signmesh. signmesh innovation hub is a tailored dashboard of curated insights and business cases to keep your company ahead of the learning curve and inspire ongoing innovation. signmesh.com SIGNMESH 57 REQUEST A DEMO. LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT
  58. 58. Die in dieser Präsentation dokumentierten Gedanken und Vorschläge sind geistiges Eigentum der 
 LHBS Consulting Berlin GmbH und unterliegen den geltenden Urhebergesetzen. Die unauthorisierte Nutzung, 
 die ganze oder teilweise Vervielfältigung sowie jede Weitergabe an Dritte ist nicht gestattet. LHBS Consulting Berlin GmbH Köpenicker Straße 154  10997 Berlin Germany   IMPRINT UNDERSTAND TODAY. SHAPE TOMORROW. www.lhbs.com THANK YOU 58 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT

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