an online conversation
about design management

Direct mail delivers for Pizza maker

I was at an industry function the other night and met someone who has developed a business based on direct marketing. She employs two designers and they are going flat chat producing direct marketing for some of Melbourne’s largest corporates. Below is one example of how direct marketing can be integrated with other mediums to boost sales.

A recent survey by Australia Post shows that direct mail is still a preferred option for many businesses. For example it showed that supermarkets communicate more than 3 times more by direct mail rather than email.

It is obvious that some businesses heavily use electronic marketing and there are some that have found a way to blend all methods of communication.

Domino’s Pizza is an example.

According to recent Australia Post case study while 50 per cent of its sales may come through online channels, Domino’s Pizza still relies on mail to drive customers to its online ordering system. Direct mail also gives franchisees a direct channel to the customers in their territories.

Ross Allen, general manager of Domino’s Direct – the company’s direct-mail division – says: “Our target market is people who eat!”

Domino’s core customer demographic is 18 to 39 year old men. However, Domino’s has made a number of changes to its range to broaden the brand’s appeal.

The solution

Domino’s uses a two pronged approach;

unaddressed direct mail for acquiring new customers, and

addressed direct mail for customer retention.

Allen estimates that Domino’s gets a ROI of 1.5–3 per cent for its unaddressed direct mail and a ROI of 6–10 per cent for its addressed direct mail.

“We send out weekly direct mail,” he says. “If our mail marketing pieces don’t go out, it affects the franchisees’ sales immediately and they’ll call and ask what happened. It’s that responsive.”

Domino’s is always looking to improve response rates. It has now turned its attention to the data used for mail, looking at creating a single, clean database for even more effective communication.

“We have separate data systems for online and print that we are integrating,” says Allen. “We’re working on a CRM project to clean up and enhance our data.”

With such a huge potential customer base, the challenge for Domino’s is how to get the message out to as many people as possible. At the same time, the company also needs to customise its messaging in individual franchise territories.

Allen explains: “We run national promotions, which are communicated online and on TV. However, the pricing varies from store to store, because each outlet has different pricing structures.”

Consequently, franchisees need a channel to communicate their prices. They also need a way to acquire new customers in their territory and turn existing customers into regular, repeat customers.

Take away point

Develop an integrated print and digital plan for clients. Use these results to show how it can work.