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Twilio > Case Studies > How Domino’s Decreased Cost Per Acquisition by 65% with Twilio Segment

How Domino’s Decreased Cost Per Acquisition by 65% with Twilio Segment

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Customer Company Size
Large Corporate
Region
  • America
Country
  • Mexico
  • United States
Product
  • Twilio Segment
  • Twilio Engage
  • Snowflake
Tech Stack
  • Customer Data Platform
  • Data Lake
  • SQL
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Revenue Growth
  • Productivity Improvements
Technology Category
  • Platform as a Service (PaaS) - Data Management Platforms
  • Analytics & Modeling - Predictive Analytics
Applicable Industries
  • Retail
  • E-Commerce
Applicable Functions
  • Sales & Marketing
  • Business Operation
Services
  • Data Science Services
  • System Integration
About The Customer
Founded in 1960, Domino's Pizza is the largest pizza company in the world based on retail sales. It ranks among the world's top restaurant brands with a global enterprise of more than 17,200 stores in over 90 markets. With an emphasis on technology innovation, Domino's has been able to achieve more than half of all global retail sales in 2019 from digital channels. In Mexico, the brand’s customer interactions span dozens of digital touch points across every aspect of the business. The number of applications that Domino’s has added to service all of these channels has similarly increased. As a result, the customer data was chaotic. Instead of being accessible across every team, data was stuck in silos with different teams having different information. Twilio Segment became the heart of Domino’s digital transformation, helping to build a more efficient and reliable marketing engine which resulted in decreased customer acquisition costs by up to 65% and increased customer loyalty.
The Challenge
In order to keep up with an expanding digital footprint and an increasingly online customer, Domino’s needed to turn its focus to online delivery and build more engagement across its digital platforms. However, customer interactions spanned dozens of digital touch points across every aspect of Domino's business, leading to data being stuck in silos. This prevented the marketing team from personalizing campaigns based on customers’ behavior, resulting in poor customer experiences that impacted lifetime value. Additionally, Alsea, Domino’s parent company in Mexico, was relaunching its loyalty program and needed a single view of the customer to personalize coupons and email messaging across its brands. At the time, every brand under the Alsea umbrella had a separate stack and set of data.
The Solution
Domino’s turned to Twilio Segment to create a universal view of the customer, better visibility of ad campaign effectiveness, and create hyper personalized audiences with Twilio Engage to increase ROAS, revenue, and incremental orders across all paid and owned e-commerce channels. Alsea created a data lake in Snowflake, powered by Twilio Segment’s Customer Data Platform, to collect and consolidate all of its customer data across 16 brands including Domino’s. By partnering with Twilio Segment, Alsea significantly simplified its data collection process across all its digital properties with a single API. This enabled Alsea to break down data silos using a data pipeline that scales across all customer touch points. Once Alsea had control over where data was flowing to downstream tools and ensuring the right data was going to the right destinations, Domino’s could take advantage of Twilio Segment for more relevant cross-sell/upsell campaigns via personalized offers. Domino’s had launched a series of Facebook and Google ads campaigns to influence customer conversion and retention. To make these campaigns as effective as possible, Domino’s built audiences using Twilio Segment Twilio Engage SQL traits using a recency, frequency, and monetary value (RFM) model. Domino’s then sent these audiences, which are built directly on top of complete customer data sources, to its ad-tech partners with Twilio Segment to target the right customers at the right time with the right messaging.
Operational Impact
  • Universal view of the customer across different brands and teams.
  • Better visibility of ad campaigns effectiveness.
  • Overall increase in ROAS.
  • Domino’s is now building complex/hyper relevant audiences using Twilio Segment SQL traits informing all its ad campaigns to be more effective and drive more revenue through its online and app business.
Quantitative Benefit
  • 65% decrease in cost per acquisition (CPA).
  • 23% incremental increase on conversions for customer acquisition.
  • 16% incremental increase on conversions for customer retention.
  • 700% increase in ROAS.

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