Domino’s struggled with declining sales and a tense stock performance after the pandemic-induced sales surge. After intense internal discussions, which even included a proposal to give every American a free pizza, the company decided on a strategically planned marketing campaign: the so-called "Emergency Pizza" promotion.
The campaign, launched in October 2023, offered members of Domino’s loyalty program the opportunity to receive a free medium pizza with two toppings within 30 days of a regular purchase. The initiative ran until February 2024 and cost the company several million dollars, but also brought significant successes: According to Domino’s, the number of new loyalty program members increased by two million, which accounts for about two-thirds of all new registrations from the previous year.
I lay awake at night because of it," said Kate Trumbull, Chief Brand Officer at Domino's, who led the promotion from the beginning. It was one of the largest marketing campaigns in Domino's 63-year history and required detailed analyses and intense coordination with franchise partners to evaluate the costs and potential impacts on the business.
The idea for "Emergency Pizza" was conceived back in the fall of 2021. The goal was to position the company as a quick solution for unexpected everyday problems – whether dinner fails or the power goes out. In addition to fostering customer loyalty, Domino's also aimed to increase the order frequency of existing customers.
After several tests in focus groups and intense internal discussions, the campaign finally launched in October 2023. On the Domino's app and website, customers saw a message after placing an order prompting them to "Click here in case of emergencies," which led them to sign up for the loyalty program. This way, they received a digital coupon for a free pizza.
Domino's had to ensure that the promotion remained profitable for both the company and its franchise partners. One major consideration was to limit the promotion to pickup customers, as the delivery sector is associated with higher costs. However, after intensive simulations and feedback from franchise operators like Art Hurteau, a long-time partner with 38 stores, Domino's decided to also include deliveries.
Technically, the campaign also presented challenges: Domino's had to safeguard against fraudulent online bots that could create fake accounts to exploit the promotion. In fact, towards the end of the campaign, the company discovered a vulnerability in another offer that allowed the pizza voucher to be redeemed multiple times. Some customers shared the codes on social media, leading to an unexpected surge in orders. Domino's closed the loophole and implemented additional security measures.
Despite the technical glitch, Domino’s considers the "Emergency Pizza" campaign a great success. U.S. sales increased by 2.8 percent in the fourth quarter of 2023, and the campaign helped to halt the trend of declining revenues. "We were surprised that many customers didn't redeem their free pizza," Trumbull said. "It shows how busy people are, even though brands are constantly vying for their attention.
Domino's plans to restart the campaign in October this year. The new marketing campaign will this time be accompanied by a promotional video that simulates "breaking" emergency glass to draw attention to the campaign.
