Foursquare contributes to increase in online sales

26 07 2010

Foursquare is all about letting friends know where you and collecting points and badges, which eventually turn into coupons. Marketers and brands have been making it work for them by attaching awards to promotions for loyal customers.

One brand that sings the service praises is Domino’s Pizza, which claims its Foursquare program has “contributed to a 28.6 percent increase to the pizza chain’s online profit across UK”, reports Mobile Commerce Daily. At the forefront of its online activity is its Facebook site, which “boasts more than 36,000 fans, affiliate marketing the Foursquare program.”

“All of these Web-based activities offer a dual benefit of driving pizza sales online and building customer loyalty with this section of the community,” the company said in its earnings release. “We are delighted to see the results of this activity with online sales rising to 32.7 percent of all UK-delivered orders.”

Domino’s first rolled out the Foursquare social media promotion in May, asking consumers to check-in when they walked in to any of the 627 locations across Britain.

Loyal consumers that check-in are offered location-based deals.

“Domino’s is one of the only things you can order anywhere – and we need to be at the forefront of our customers’ minds at the point they realize they are hungry,” said Georgina Wald, corporate communications manager at Domino’s, London.

“To that end, we need to make sure that everywhere they look – on TV, in the paper, on the Web, on their phone – we are there, and location-based services and mobile marketing helps this.

“In addition, pizza is a low-involvement purchase – there’s not much you can order by phone/online and have the finished product in your hand within 30 minutes,” she said.

Consumers that visit retail Domino’s locations most frequently are named mayors. Every Wednesday, the mayor of each store gets a free small pizza. This free offer, rather than a discount, drives more check-ins per Domino’s.

Additionally, Domino’s has an iPhone-friendly site and is in the process of developing a full iPhone application for UK. The company also plans to roll out an Android version.

“We like to lead the way with new media initiatives and Foursquare is such a low-cost option, that it seems ridiculous not to do.” Ms. Wald said. “In fairness, [we are targeting] anyone who’s on Foursquare. But we believe it’s a great fit with our existing customer base,” she said.

Source: Mobile Commerce Daily



2 responses

26 07 2010
Foursquare contributes to increase in online sales « MARKETING WISE « Phalanx Marketing Solutions

[…] Follow this link: Foursquare contributes to increase in online sales « MARKETING WISE […]

26 07 2010
Marketing Wise

Foursquare is still in it’s infancy, but if you are a location based business, it’s a gem of marketing channel. To get started, you will have to list your business. Provide as much information as possible. Add your contacts – you can even invite your Facebook contacts to join. Check in when you arrive to work everyday, as well as other places you visit along the way so it’s not just all about your business. You can add ‘tips’ to places that you check in, so use this feature to add info on promotions, events or anything noteworthy, interesting or helpful, such as tips on parking. Then get creative – the Domino’s Foursquare program described in this article is a good one. You may also want to incentivise customers that add positive comments or tips about your business on Foursquare to help spread the word.

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