June 12, 2012, 8:51 AM

Domino’s hits $1 billion in online pizza sales

Social campaigns helped push web, mobile and app orders to that level.

Lead Photo

Starting this week and running through Sunday, June 17, Domino’s Pizza customers in the United States will receive 50% off the pie portion of their Internet orders at participating locations. The retailer announced the offer as a thank-you to its digital customers who, for the first time, in one year generated $1 billion in sales from web, mobile and app orders. Domino’s measured the sales between last April and this April.

"Reaching $1 billion in online sales during a one-year time period is a major milestone, and we hope offering this amazing deal for an entire week lets our fans and customers know how much we appreciate them,” says Russell Weiner, chief marketing officer at Domino’s.

Since the compaany began taking web, mobile site and mobile app orders—which Domino’s collectively calls digital orders—in 2008, they have increased to account for more than 30% of all Domino’s U.S. sales. The Domino’siPhone app debuted in June 2011 and the Android app in February 2012.

At the end of last year the company also launched a successful social media campaign to promote online orders of its new artisanal pizzas. Domino’s gave away e-coupons for the pizzas through a Facebook application that customers had to redeem on the normal web site. At some times, the giveaways reached 1,000 pizzas per minute; Domino’s gave out 100,000 free pizzas in all.

“They get that pizza, then they tend to order another pizza. Then they post a social comment that gets others to like it and grows our fan base,” says Dennis Maloney, vice president of multimedia marketing at Domino’s. “This has worked out very well for us.”

Maloney spoke about the campaign at the Internet Retailer Conference & Exhibition 2012 last week in a session entitled, “What’s the value of Like for large retailers?” Domino’s is now approaching 7 million Facebook fans, he says, and given the company’s successes, “Anyone that would argue that you can’t drive your business using your fans, I would argue against that.”

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