When Domino’s Pizza launched its first-ever loyalty program in the fourth quarter of 2015, CEO Patrick Doyle was very excited about its prospects.
“We’ve seen what loyalty programs do for customers across many different industries and it was time for us to get in the game,” Doyle said in October 2015. “We expect to drive order frequency and connect with customers through our unmatched digital experience. We wouldn’t roll it nationally if we didn’t think it was going to be a positive contributor to our success going forward.”
Fast forward 12 months and Domino’s Pizza, which boasts 22 consecutive quarters of positive U.S. comps, has seen success from its loyalty program.
“Our Piece of the Pie loyalty program continues to contribute significantly to our traffic gains,” Dominos Pizza CFO Jeff Lawrence said during Tuesday’s third-quarter earnings call.
Domino’s officials are proud of the loyalty program’s simplicity.
Basically, a member receives 10 points for every order of more than $10. As a result, six orders over $10 qualifies for a free medium pizza. When Domino’s officials researched other loyalty programs, they found that they can get very complicated and brands can lose customers because of it. They say that the Piece of the Pie loyalty program is simple and transparent.
Membership perks include exclusive members-only discounts and bonus offers. Piece of the Pie Rewards members may track their past purchases, earned points and redeemed points online via their Pizza Profile.
In the third quarter of 2016, Domino’s registered global retail sales of nearly $2.5 billion, with more than $1.2 billion in the U.S. and nearly $1.3 billion internationally. Sales for the third quarter rose nearly 17% while net income jumped nearly 25%.
Doyle summarized the company’s auspicious third-quarter performance.
“We continued to execute at a very high level during the third quarter, as our unprecedented momentum, steady strategy, and alignment with our outstanding franchisees is helping to take the business to new heights,” he said. “I couldn’t be more pleased with the way our system continues to answer the challenge of sustained success.”