Domino’s plans to launch an updated loyalty program in September, executives said Monday during the company’s Q2 earnings call. While not many details were shared, CEO Russell Weiner confirmed that the offering would remain a transaction-based program. However, Domino’s will reduce the requirements to earn and redeem loyalty points, he said.
“This will positively impact our carryout customers as well as help us retain our current and new delivery customers,” Weiner said.
Domino’s, which reported a 3.5% decline in U.S. delivery same-store sales, expects the loyalty program to help improve delivery as early as the fourth quarter, CFO Sandeep Reddy said. It could also help drive additional carryout sales. Domino’s carryout customers’ average tickets tend to be lower than that of delivery customers, and the company will add more opportunities for these diners to engage with the program. The current program’s starting point is 60 points, but there will be lower-value starting points, Weiner said.
“I like to think of it as how do I feel as a customer when most brands redo their loyalty programs? Usually, as a customer, I'm on the short end,” Weiner said. “A new loyalty program for a company usually means they're trying to drive a little bit more profitability, which means things are taken away from me as a customer. We're doing the exact opposite here.”
Weiner added that he expects the loyalty update to help drive incremental frequency and long-term profitability.
Domino’s joins a flurry of QSRs that are updating their loyalty programs this year. Chick-fil-A enhanced its Chick-fil-A One program by increasing some points values and new items available for redemption, such as a kid’s meal. Dunkin’ updated its loyalty program earlier this year by raising the number of points to redeem drinks, and later faced customer backlash. Other chains, including Del Taco, El Pollo Loco and Mod Pizza, revised or added tier levels to their offerings.