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.
Bamboo Charcoal Toothpaste By Phyto Atomy For More Details Message On WhatsA...
Domino's Strategy: From Pizza to Tech Giant // Customer Value Series
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. ABOUT.
INTRODUCTION
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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. 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
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4. CONTENT.
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CUSTOMER VALUE
CANVAS
CONCLUSIONS &
IMPLICATIONS
ABOUT
DOMINO'S
CONTENT
4
Chapter 1 Chapter 2 Chapter 3
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ABOUT
DOMINO'S
Chapter 1
Quick facts about the company and its growth
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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
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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
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MISSION.
SELL MORE PIZZA
HAVE MORE FUN
8
LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT ABOUT DOMINO’S
Source: Domino’s
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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
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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
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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
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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
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REPORT TITLE // IMPLICATIONS.
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Only one company
has been growing
almost as fast as
Domino’s in the
recent years: Netflix
13Source: The Atlas
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REPORT TITLE // IMPLICATIONS.
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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
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REPORT TITLE // IMPLICATIONS.
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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
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REPORT TITLE // IMPLICATIONS.
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“We are as much a tech company
as we are a pizza company”
16
J. Patrick Doyle, CEO of Domino’s
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Source: Harvard Business Review
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REPORT TITLE // IMPLICATIONS.
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Out of 800 people
working at Domino’s
headquarters, 400 work in
software and analytics
17
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Source: Harvard Business Review
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REPORT TITLE // IMPLICATIONS.
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Explore Domino’s Customer Value Proposition and see
how they deliver value through their products, added
value services, shopping experience and
communication.
18
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CUSTOMER VALUE
CANVAS
Chapter 2
Domino’s initiatives
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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. 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. LHBS Put the Title of the Report here
HOW TO.
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DOMINO’S
CUSTOMER
VALUE
PROPOSITION.
Customer Value Proposition
Mealtime solution for the
digital age that is “feel good”,
fast, seamless and easy.
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CORE PRODUCT
Which products does Domino’s create?
How is Domino’s growing their core capabilities of being a market place?
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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
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ADDED-VALUE SERVICES
How does Domino’s facilitate and deliver services that enrich and
simplify the lives of their customers around their core products?
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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
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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
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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
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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
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SHOPPING EXPERIENCE
How does Domino’s make ordering, shopping and waiting for their
delivery a uniquely positive experience?
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31. SPEED OF ORDERING
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-SHOPPING EXPERIENCE-
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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
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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
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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
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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
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36. SPEED OF DELIVERY
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-SHOPPING EXPERIENCE-
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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DOMINO’S CVP
SUMMARY
LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS
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. 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. 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. 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. 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. UNDERSTAND TODAY. SHAPE TOMORROW.
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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
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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. 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
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