How Domino’s decreased cost per acquisition by 65% with Twilio Segment
Time to read: 4 minutes
In order to keep up with an expanding digital footprint and an increasingly online customer, Domino’s needed to turn its focus to online delivery and build more engagement across its digital platforms. But customer interactions span dozens of digital touch points across every aspect of Domino's business. Instead of being accessible across every team, data was stuck in silos. The marketing team was unable to personalize campaigns based on customers’ behavior, resulting in poor customer experiences that impacted lifetime value.
Domino’s turned to Twilio Segment to create a universal view of the customer, better visibility of ad campaign effectiveness, and create hyper personalized audiences with Twilio Engage to increase ROAS, revenue and incremental orders across all paid and owned e-commerce channels. Ultimately, Domino's new data infrastructure, powered by Segment, resulted in an overall decrease of customer acquisition costs (CAC).
Founded in 1960 Domino's Pizza is the largest pizza company in the world based on retail sales. It ranks among the world's top restaurant brands with a global enterprise of more than 17,200 stores in over 90 markets. With an emphasis on technology innovation, Domino's has been able to achieve more than half of all global retail sales in 2019 from digital channels.
In Mexico, the brand’s customer interactions span dozens of digital touch points across every aspect of the business. The number of applications that Domino’s has added to service all of these channels has similarly increased. As a result, the customer data was chaotic. Instead of being accessible across every team, data was stuck in silos with different teams having different information.
Twilio Segment became the heart of Domino’s digital transformation, helping to build a more efficient and reliable marketing engine which resulted in decreased customer acquisition costs by up to 65% and increased customer loyalty.
Scaling customer data without a single source of truth
Domino’s Pizza is the largest, most successful and innovative chain of fast delivery restaurants in Mexico and to reach the standard of service necessary to achieve this, they have maintained a strict policy around efficiency and reliability. In Mexico, Domino’s currently has more than 718 stores, of which 433 are corporate and 275 are franchises, through which it serves more than 550,000 families a week, with the support of nearly 10,000 employees.
Customer interactions span dozens of digital touch points across every aspect of the business. And with more focus on digital, the number of applications Domino’s invested in to service all of these channels had increased. As a result, the customer data was all over the place. Instead of being accessible across every team, data was stuck in silos with different teams having different information. Data silos prevented collaboration around the customer experience, and the marketing team was unable to personalize campaigns based on consumer behavior. This led to low return on ad spend (ROAS) due to generic / poorly targeted messaging.
Additionally, Alsea, Domino’s parent company in Mexico, was relaunching its loyalty program and needed a single view of the customer in order to personalize coupons and email messaging across its brands. At the time, every brand under the Alsea umbrella had a separate stack and set of data.
In order to keep up with growth, an expanding digital footprint, and an increasingly online customer, Domino’s needed to turn its focus to online delivery and build more engagement across its digital platforms.
Building a customer data infrastructure that quickly scales across all customer touch points
For Domino’s to be successful in bolstering its marketing and engineering efforts in the online world, the brand needed a strong, coherent data set around its consumers, their preferences, and buying habits.
First, Alsea created a data lake in Snowflake, powered by Twilio Segment’s Customer Data Platform, to collect and consolidate all of its customer data across 16 brands including Domino’s. By partnering with Twilio Segment, Alsea significantly simplified its data collection process across all its digital properties with a single API. This enabled Alsea to break down data silos using a data pipeline that scales across all customer touch points.
Once Alsea had control over where data was flowing to downstream tools and ensuring the right data was going to the right destinations, of which Segment has 400+ OOTB integration options, Domino’s could take advantage of Twilio Segment for more relevant cross-sell/upsell campaigns via personalized offers.
Dominos had specific marketing goals:
- Increase total number of online orders via Domino's website or mobile apps.
- Increase the total revenue brought by Domino’s online team.
- Increase the ROAS based on their Marketing Digital investments.
- New Data Analysts that needs a consistent and robust Database (DW).
- Create better audiences and segments to improve personalization and increase the advertising spent.
Using Twilio Engage audiences to fuel more effective Facebook and Google ad campaigns
Domino’s had launched a series of Facebook and Google ads campaigns to influence customer conversion and retention. To make these campaigns as effective as possible, Domino’s built audiences using Twilio Segment Twilio Engage (formerly known as Personas) SQL traits using a recency, frequency and monetary value (RFM) model. Domino’s then sent these audiences, which are built directly on top of complete customer data sources, to its ad-tech partners with Twilio Segment to target the right customers at the right time with the right messaging.
With Twilio Segment, Dominos was able to identify 8 cohorts of customers and create personalized customer journeys for each based on behaviors. Domino’s now has visibility into which groups of customers are going to buy pizza every 60 days, 90 days, etc with this model, which makes ad campaigns through Facebook and Google that much more effective.
Universal view of the customer and better visibility of ad campaign effectiveness
Now that Alsea is set up with a data lake from Snowflake and Twilio Segment Customer Data Platform, they now have a single view of the customer across all the different business units including Domino’s. Additionally, Snowflake has enabled Alsea to build a data science team and initiatives to understand the customer profile across brands.
Domino’s is now building complex/ hyper relevant audiences using Twilio Segment SQL traits informing all its ad campaigns to be more effective and drive more revenue through its online and app business.
Twilio Segment Overall Results
- Universal view of the customer across different brands and teams
- Better visibility of ad campaigns effectiveness
- Overall increase in ROAS
- 65% decrease in cost per acquisition (CPA)
Facebook campaign results
- 23% incremental increase on conversions for customer acquisition
- 16% incremental increase on conversions for customer retention
Google campaign results
- 700% increase in ROAS
- 65% decrease in customer acquisition cost (CAC) month on month