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Net Promoter News: Domino's stuffs ecommerce into pizza crust, St Jude's says loyalty is a two-way street, Bezos says we don't make money when we sell things

Domino’s stuffs ecommerce into pizza crust

In its mid-2012 earnings report, Domino’s Pizza UK boldly claimed that Domino's would soon become known as an ecommerce business.

Was this an overly ambitious prediction? Not so much. By Q4 2012, a whopping 60% of its sales were online, with a fifth of them through the Domino’s mobile app.

To use a somewhat cheesy pizza pun (see what we did there?), the online trend is adding multiple new toppings to Domino’s business base. Online customers give Domino’s a higher Net Promoter Score, and as you would expect of customers that have higher levels of loyalty, they order more often. Due to lower costs in terms of staff overheads, online customers also deliver a bigger profit margin per transaction.

[caption id="attachment_4619" align="aligncenter" width="550"]Dominos-Mobile-App1-550x279.png Domino's online: Extra revenue toppings, 'appy customers, and cheesy puns.[/caption]

In correlation with its digital growth, bigger online margins, and higher NPS for online customers, the company announced record profits for the year.

It’s not mentioned exactly what is driving the higher NPS for online, but this is a great example of an established brand proving that retailers can thrive by (presumably) using feedback to provide the right online experience for their customers. The Drum

St Jude’s: "Loyalty is a two-way street" Bezos: "We don't make money when we sell things"

In our Valentine’s Day Edition of the Net Promoter News, we reported on a Net Promoter study by LoudDoor that found St Jude’s Children’s Hospital has the highest NPS of 15,000 Facebook pages it surveyed.

As a not for profit organisation, St Judes has an intrinsic appeal to the compassion of its fans that many for profit businesses do not. Nevertheless, an interesting reason as to why it inspires such loyalty is, er,  loyalty - but not by its fans. “I honestly believe loyalty is a two-way street. We at St Jude are just as loyal back to our fans as they are to us,” said a spokesperson.

An HBR post this week touched on a similar theme for the business world, saying that businesses need to move beyond advertising and promotions in order to build sustainable relationships with customers. Perhaps the best quote in a very thought-provoking post comes from Amazon boss Jeff Bezos, who noted "We don't make money when we sell things. We make money when we help customers make purchase decisions." Harvard Business Review

In brief

  • Latin American ecommerce company MercadoLibre posted better-than-expected Q4 profits, improved customer satisfaction retention rates and a NPS that grew year-on-year in both Brazil and the Spanish-speaking countries. Seeking Alpha
  • Canadian bank BMO also appears to be reaping dividends from its digital drive, saying that its Online Banking for Business is receiving “top-tier customer loyalty, as measured by commercial net promoter score.” Reuters
  • Warranty and maintenance business Cross Country Home Services notes in a self-puffer that it has embedded Net Promoter in the organisation through employee trainings and incentive programs. Digital Journal

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