Domino’s Pizza in Indonesia has been winning loyalty awards all over the world in recent months, as they share their incredible strategies to create customer loyalty using customer analytics and data-led insights.
While it’s still a challenger brand in Indonesia, in today’s episode, Mayank Singh, Domino’s Chief Digital Officer in Indonesia, shares how he and his team are achieving dramatic behavior change and incremental ROI using the power of digital technology.
For a true masterclass in loyalty marketing, please do enjoy our conversation with Domino’s in Indonesia, in association with our friends in Capillary Technologies.
This episode is sponsored by Capillary Technologies.
Welcome to Let’s Talk Loyalty, an industry podcast for loyalty marketing professionals. I’m your host, Paula Thomas, and if you work in loyalty marketing, join me every week to learn the latest ideas from loyalty specialists around the world.
Capillary’s loyalty solutions offer AI powered next generational technology. Making them a catalyst for enabling meaningful human connections across the globe. The platform is deep and wide, yet flexible enough to meet the needs of any company looking to take its customer loyalty to new height. Visit capillarytech.com now to see how they can transform your loyalty future.
Hello and welcome to this episode of Let’s Talk Loyalty featuring a truly Global Voice of Loyalty. Mayank Singh is the Chief Digital Officer of Domino’s Pizza in Indonesia. A brand that has been winning awards all over the world in recent months as they share their incredible strategies to create customer loyalty using customer analytics and data led insights.
Domino’s is very much a challenger brand in Indonesia, in a country that doesn’t traditionally even eat pizza. So it was really inspiring to hear how Mayank and his team are achieving such dramatic behavior change and incremental return on their investments using the power of digital technology. For a true masterclass in loyalty marketing. Please do enjoy my conversation with Mayank Singh from Domino’s in Indonesia. And as always, if you want to ask any questions or comment on this episode, just look for the feedback link in the show notes.
Paula: So Mayank Singh, welcome to Let’s Talk Loyalty.
Mayank: Thanks Paula and hello and Namaste to all the listeners of Let’s Talk Loyalty and to the fans of Paula Thomas. Oh, um, uh, it’s very, very special to be part of your show and I look forward to an interesting conversations with you.
Paula: Thank you so much, Mayank.
It’s the first time anybody has welcomed me with the Namaste. And having spent a little bit of time in one of the islands of Indonesia a couple of years ago, I know how special that word is in the culture. So, uh, very beautiful and well received. So I am super excited to talk about Domino’s in Indonesia, Mayank, you have done, so much award-winning work. It’s almost hard to know where to start. But let’s start with our usual opening question in terms of understanding, I guess, as a loyalty professional Mayank, what would be your favorite loyalty program other than your own work?
Mayank: Paula my belief is that there’s no, no one solution of loyalty that can be implemented or can be someone can be fan of because the loyalty differentiate from country to country, one solution, uh, in one country cannot be the same and similarly executed in any other country, yeah. So you have to understand that demographic of the country. But having said that, if I have to choose one, yes, I’m a big fan of Starbucks Loyalty Program because that’s one program, if you see from, down to, uh, to any country, they have similarly been activated and it has been running successfully and doing wonders for them.
So coming from a food industry, food retail, and looking at Starbucks and their loyalty program, that makes everyone actually a fan of Starbucks loyalty program.
Paula: For sure, and you are clearly not the first person, my to say that Starbucks rewards is their favorite. Uh, we haven’t actually had them on the show here yet.
So a quick shout out. If anybody’s listening from Starbucks and wants to join us to share the global success, we would obviously be thrilled. But I think the point you’re making my is absolutely right because I did an interview yesterday with somebody from Brazil and he said exactly the same. He said Starbucks in Brazil has done an exceptional job, and even before he was working in loyalty, he would be bringing all his colleagues down so they’d get their stars and they’d be using the prepayment and everything that Starbucks does so exceptionally well.
So there’s a lot of parallels, I guess, in terms of what we’re gonna talk about today with Domino’s as a global brand. So let’s get into it. You have a super interesting title of Chief Digital Officer. and I know that Domino’s actually has a huge amount of work to do in a country like Indonesia, where actually pizza is not a normal food choice or a popular food choice.
So would you set the context for us Mayank? I was amazed when you explained to me some of the, um, the usage and frequency that you’re trying to work with. So tell us a bit about the market.
Mayank: So Domino’s say, well talk about the Indonesian market first. The Indonesian market is a very interesting market. Um, the, the, the food which people love here is Nazi Ayam.
Nazi Ayam is, is, uh, that’s what they call in Bahasa, which is a language spoken in Indonesia. Yeah. Uh, in English version of Nazi Ayam is chicken and rice. Okay, so Nazi is rice and chicken, as Ayam . So, so that’s the favorite food, uh, which is very popular here. Most of the QSR’s have actually adopted to start selling the fried chicken and rice, uh, to the, to these, uh, to the audiences to, to dig deep to their customers into their food menu.
Of course. Uh, so you, you name Burger King, you name McDonald’s, they have that on their menu. Okay. Interesting. This is what makes Indonesia different, uh, from a food perspective. Yeah. Uh, Domino’s Indonesia is, is a newer brand, if I would have to say, because we are just 13 years old in this market.
Uh, growing still small. We are currently 222 stores recently reached this milestone. Few days back only. Congratulations. Yeah. Yeah. Thank you . So, uh, and we have been growing very fast from 2019. When? 2018 when I joined, we were 125 stores. So since then we have been adding stores, including this whole time when there was pandemic.
Uh, and, and Domino’s had a good growth. Yeah. Uh, with respect to opening stores. So, Uh, that’s one. The other is, uh, Domino’s when it comes to the pizza eating. So, uh, the frequency is not like, uh, frequency you would see in Europe, Australia, or US itself. Yeah. Uh, we sit at a very low frequency of 1.8 to 2 as an average frequency of a customer in a year. uh, which is what makes it special for me because it’s a challenge that you have to work with. Uh, and that takes to, uh, makes one of the important point also here, which, uh, that’s my task. Yeah. Is to how to convert the single frequency customer into a multi frequency customer. Yeah. Uh, which is someone who tasted once then how to make sure that they keep tasting again, and that’s where the loyalty kicks in. Yeah. So, so that is what is making the whole dynamics of this country special to Domino’s Pizza Indonesia. Yeah. And that’s what we have been working on for last few years, uh, to ensure, how can we, change this, increase the frequency, make the company grow and make revenue for the, for our board and shareholders.
Paula: Yes. Well, I mean, 222 stores, just to put it in context, and I, forgive me, I had to look up Wikipedia to get a better sense of the scale of Indonesia and just with so many people listening, Mayank in the US for example, in the UK, and Australia, you know, it’s remarkable to me that Indonesia is actually the fourth biggest country in the world with a population of 276 million people.
So, you know, the scale is extraordinary. So to be growing as quickly as you guys are, um, first of all, the footprint, but also that frequency piece that we’re gonna talk about now. I mean, the scale of the challenge, I mean, must be exhilarating to you. Uh, cuz you wouldn’t take on something so big, I guess, unless you really like to challenge.
Mayank: Yeah, of course. And the challenge doesn’t stop with the frequency, the challenge stop with the islands. You forgot to mention the number of islands that this country has.
Paula: Tell us. Yes. I wrote it down and I didn’t mention, tell us how many islands there are.
Mayank: There are around, uh, I think 17,000 islands. Yeah. Uh, and um, . And that’s, so the, the biggest island is actually Sumatra and Papua, but the biggest island with the highest population is Java, that’s where I’m sitting right now. Okay. The Jakarta is the capital and talking to you from a capital city of Indonesia. Yeah. Uh, and Java Island is having the highest population.
Yeah. And culturally, the island to island, uh, the, the language are just the same, which is their internal, their national language Bahasa, but there is slight difference in the variation in this, the way it’s spoken in all the other, other islands. Yeah. Uh, in. and, and that makes us, uh, makes us interesting. In terms of Domino’s perspective, is the ex to expand, as you said, 270 million is the population?
Yeah. Uh, so the expansion is the key and, and we have been expanding to all the newer islands, newer places. And I’ve been loving Indonesia. I’ve been, been here as an expert, but also been enjoying as a tourist. Okay. So explored, I think most part of it. Yet there are many islands yet, uh, unexplored. Yeah. And I’ve been looking forward to it. How long I stay in here.
Paula: I’m sure you will. My goodness. So since 2018 then Mayank, uh, you arrived into this clearly very ambitious brand, and I’d love you actually to explain a bit about how Domino’s sees itself, in fact, just because I think there’s a very interesting positioning statement which will really support the conversation we’re gonna have about, the various initiatives you’ve taken as Chief Digital Officer. So rather than being seen as a pizza company, will you maybe tell us exactly how Domino’s positions itself globally?
Mayank: So Domino’s positions, if I have to tell you, frankly, it reminds me of statement of, uh, uh, Patrick Doyle, who was an Ex-CEO of Domino’s US.
Yeah. Uh, he once stated that, uh, Domino’s is a technology company selling pizza’s yeah. Uh, and that’s what the core belief of Domino’s is there in every market. So we thank technology and we ensure how the technology is going to enable to ensure that we deliver the tastiest pizza to the customer at their doorstep, which is hot, fresh, and the cust make making those customers delighted. Yeah. With the experience that Domino’s is going to give to them. . Now this experiences comes through digital, and through the brand experience that we actually provide. Yeah. Uh, one of the things which globally Domino’s is known for is the 30 minutes guarantee.
Yes. Uh, which is, if you don’t reach to your doorstep in 30 minutes, the pizza is free. So Yeah. So the, that’s, that’s the program everyone would know. Uh, when it comes to Domino’s, I have, I was in India. I remember those, those movies, those memes that used to come out. Yeah. And which used to state. The, the medicines come late, but the, or the ambulance comes late, but the pizza comes in 30 minutes
So, and that’s where the Domino’s has positioned themselves. Wow. Uh, with respect to Indonesia, the situation, the, uh, effort has been same, which is ensuring that we deliver in 30 minutes. Yeah. Uh, we do have a 30 minutes guarantee in Indonesia as well. Yeah. Uh, on the top of that, uh, as a brand, we, we portray ourself as a value brand, which is, uh, okay. Which we play into the area where we define that, uh, value you are having or purchasing a pizza’s from Domino’s. Yeah. It’s the value which is, which is given back to you, the value in terms of the money you are spending, the value in terms of the taste that you are getting. Yeah. So, and that’s, that’s the key position that we would want to hold and we ensure that we keep, uh, uh, utilizing it.
Paula: Yeah. Yeah, and, and I think I said to you Mayank last time that I wrote quite a number of articles a few years ago about Domino’s specifically. Um, and we’ll make sure to link to those in the show notes. But for me, what I think Domino’s has done right globally, and this is my first time of course, learning about the Indonesian experience.
But the first thing I think that Domino’s did was get the basics right. So I know many years ago, I think it was maybe 20 years ago, 15 years ago, you know, maybe Domino’s Pizza wasn’t as good as other competitors. So there was a huge campaign about getting the, the product to taste absolutely delicious before, I suppose the ultimate distribution came in and the, and the delivery guarantees that you’ve talked about.
So, when I think about loyalty, I love to see that the, the, the company really understands that you can’t build a loyalty program, even with a level of expertise and analytics and everything we’re gonna talk about now unless the product is delicious. So, um, so I thought that was very brave. I know that was a huge campaign to say, look, we know we have work to do, and that was very admirable.
So, moving on from that, the other things that I remember again was the fact that Domino’s is a technology company. And when we think about e-commerce specifically, um, you know, we think about brands like Amazon, but even at that time, Domino’s was in the top five e-commerce brands in the United States.
And I also remember all these statistics was so exciting. 15 different ways to order. So just incredible. So I’m very envious of your role. So tell us some of the initiatives that you’ve been working on Mayank over the last four or five years.
Mayank: I’ll, I’ll give you a different story. So I come from India, uh, where in India also, I was part of Domino’s Pizza India. Okay. Okay. And, um, back then in 2012, my tenure was from 2012 to 2016, yeah. In Domino’s India. And I’m someone who’s known for setting up the first hyper local D2C, uh, e-commerce business in food space, which was Domino’s Pizza’s Digital Commerce Business. Wow. Where we started with the e-commerce website and moved on to mobile apps and, and even ended up with launching a voice ordering platform.
Uh, wow. Super cool. Yeah. So that, that was the, that was a key learning ground I think, I, I, it, it was a CLINs school of soccer for me. Uh, so, so, so totally where I was learning all this, uh, stuff about Domino’s, uh, came back, uh, uh, went to multiple companies there. Then later on, um, was part of a media company and then came to Domino’s Pizza Indonesia.
Yeah. Uh, now this is Domino’s Pizza Indonesia. I joined, uh, to take care of two different loyalty one is the Marketing Bit, uh, which is the data driven marketing loyalty and, and, and the things and the data insights, uh, including the customer service analytics. And the other is the IT Info Part, which is building the technologies, finding the new channels that you, uh, you are asking for.
Yeah. So, so, so the growth has been with. So our motto has been to grow from wherever it is possible. So finding out newer avenues is one of my role. Uh, when it comes to the finding newer avenues, it’s, it starts with the partnerships as, as well as starting with rebuilding our own channels. So when it comes to building our own channel, we already have our e-commerce website, e-commerce mobile site, which is a PWA, uh, progressive web app application.
Okay. Then we have an Android application, iOS application. Uh, which is, uh, but the market is very, um, I would say a mobile centric market. It’s a mobile first market. If I have to be very precise. Yeah, because, uh, almost 97% of my transaction comes through the app and not through the website. It’s just 3%.
Wow. , which makes it more, uh, mobile centric market. And that’s been the re the reason being because how the Indonesia first interacted with the internet. Yeah. Unlike the US where it started with a desktop, then we moved to laptop and then the mobile came in. Yeah. Uh, Indonesia was a market where most of the users, first time they saw the internet was on mobile, and that’s how they adopted themselves to, to the use of mobile and mobile apps.
Okay. Other than that, uh, the WhatsApp is itself is very big in here. Uh, when you talk about calling to people or chatting with them. Yeah. WhatsApp is the, is is one app everyone uses. Yes. In fact, uh, today, while I was coming, for the back to home to, to be part of this podcast. One of my friend was trying to reach me out and the network was not there.
Okay. The internet network. And then, uh, he, me, he pinged me and suddenly I saw the message and I called him back. Uh, and he was saying that your net, your network was not reachable. I said, the network of internet was not there. But the main, the telecom network was there. Why didn’t you use the normal lines?
Yeah. to call me up and he said, oh yeah, I just forgot it,
Paula: forgot about the network. Oh my God.
Mayank: Yeah. So, so they, they, this. The internet is so heavily used that people have forgot using the most traditional way of calling through the phone lines. Wow. Uh, to, to contact users. And if I want to call someone, I’ll always go to a WhatsApp and call.
So, so, so, which makes it very special. And that, that made even us launch, uh, WhatsApp supporting bot, uh, in this market, especially when, when this pandemic thing happened. Everyone was getting digitalized, people were spending more times on the internet, especially on these apps. Yeah. So we launched, uh, uh, uh, WhatsApp ordering Bot, which is the first day in QSR in Indonesia to do so.
Wow. So today we have a WhatsApp ordering bot. We are getting not, I would not say, large amount of orders, but we are getting a good number of orders through this channel. And, and it’s a start. Yeah. Uh, the, the idea is to keep building it, keep enhancing it, keep improvising it to, to let it grow. Because, uh, the conversational ca uh, commerce is the new jargon, which is being talked about. Totally. Uh, yeah. So the. So that’s in the direction of Domino’s being a technology company. Yes. Other than that, uh, there’s partnership. Uh, so we have the aggregator partnerships also. We are, uh, fully integrated with them so that the, when they try, when anyone uses their application, the order flows directly into the kitchens of Domino’s so that we ensure the, the 30 minutes guarantee that we are offering. Wow. However, the guarantee is not there on those channels if you order, because it’s only for the Domino’s, because Domino’s believes and we are proud of their own channels and that’s where we focus on. But in case you as a customer choose any other channel, yeah, we ensure that we in those channel also, we deliver the same services to the customer and the Domino’s driver goes and does the delivery.
Which is where, where the technology role comes into the play that someone’s selecting any other channel, it should go directly into the kitchen without a use of human intervention. Putting the order into the POS. Yeah, it goes directly to the kitchen, make line and, and the guy would start preparing the order.
So that’s the other, the, and then there are partnerships which we do with the banks, with e-commerce companies to ensure that the, the coupons, uh, are widely available , okay. Uh, which, uh, which you, you can see on those e-commerce platforms. So you can buy the co coupons or the partnership, uh, companies giving it for free when you buy something.
Yeah. So those kind of collaboration, is that something which we have been working on to ensure that Yeah. We don’t leave any stone when it comes to reach to a cust reach to the customer. Uh, uh So, so those, those has been the stuff which we have been doing. Yeah. Uh, in terms of, uh, expanding, um, recent story that I would want to highlight is, is the recent stuff which we did when the pandemic hits in, and, and the, the migration of people was happening more towards the digital. Okay. And the adoption was much faster on the super apps. Uh, so being, uh, onto the Domino’s side of the business, uh, KPI, is to ensure that people are more loyal to us and use our platforms.
Yeah. So at the same point, you have to fight with these, uh, partners. Yeah, I, I would call them a partner. They are my competitor as, as well as. Of course, the collaborators. So, so, so how to differentiate, become the key. Now to do that, what we did was we started, uh, studying our customer, their behaviors and how much the, the channel they’re using.
Okay. Whereas we have, uh, a channel, which is the carryout, which is being heavily used in this market, the Domino’s Indonesia. The Indonesia market is very different from the other market where people either do the delivery or do the dining. But here people do love to do carryout, which is come and pick up at the store and go home and eat and consume the food.
Which is where we realize that, uh, if we can offer them, uh, a better way to do a transaction with us. So we had to do two weeks and changes into the way our app is, uh, my current app offers them three page checkout, which is to ensure that they don’t spend much time on the app. Uh, at the same time they can order a carryout order through the app. And when they do the carryout order, they, we are offering them a two minutes guarantee for the pickup. Now this is something which sounds. Amazing. Very insane. Yeah. Yeah. But, uh, we are the first one to do in the Asian market. Uh, we are trying to put more marketing behind it to promote it. Yeah. Uh, um, so how it works is that if you have, you, you are on the way to collect the pizza.
Yeah. So you just need to start from your office, place your order. As soon as with the, you are within the a hundred meter range of the store. You just need to do a check-in, into, into the app to, uh, if you are using the car uh, and you can inform your car number. The, the guy from the store will come out and give you the pizza Wow. Into your car. So you don’t need to go inside the car. Yeah, which is one kind of experience that we are offering. The other is which, uh, which one can say as a car site delivery. The other is that, uh, you can just do a QR code scan at the store, which is another kind of check-in. The store will immediately know that you are here to pick up at store.
Without you telling to the store that I’m here. The store guy would know your availability and he will immediately give you your order. And if it’s not happening within two minutes. That is where you’ll get a free pizza . Wow. So, so we have been running this, uh, from last three months. Uh, we are focusing it to make it grow to, the idea was to digitalize our carryout customer who have been interacting with us, uh, through this channel.
Yeah. So, and, and if we are able to capitalize the, uh, carry out customer on, onto a digital platform, the second order could be a delivery is where the focus is.
Paula: Yeah, well I can totally imagine the wow factor, Mayank in terms of, you know, if I am the type of customer who wants to come to a Domino’s store, get my pizza within two minutes without even having to read out an an order number, so it’s automatically handed to me within two minutes, I think that wow factor must be just incredibly powerful.
To drive the advocacy, and you talked about, I mean, the average consumption being so tiny, 1.8 to 2 a year. So immediately I can see why you’re focusing on such an incredible experience to drive the overall consumption, you know, year by year.
Mayank: Yeah. And, and it’s like a queue buster if I, I have to say.
Yeah, yeah, yeah. People, everyone is standing in queue and suddenly some person comes in Yeah. And someone is giving up the pizza to them. So, uh, the experience is well, and not just for the customer who is receiving it, but also for the customer who is standing in the queue and watching what this guy is experiencing. Totally. At this. So that makes, that makes a whole lot of difference.
Paula: Yeah, it’ll be interesting to me how you measure that. Um, and I don’t know whether it’s in absolute numbers, Mayank, in terms of the kind of KPIs or adoption that you have set yourself, you know, for particularly this two minute carry out unique selling point that you’ve created.
So what does success look like? Is it converting existing customers into using that and as you said, digitizing the carryout? or are you measuring things like advocacy? What? What does success look like for you.
Mayank: So, so far the growth has been slow. Initially, we were not very pushy when it comes to the marketing part of it because we were want, we wanted to ensure that the operational KPI’s are intact. Very wise. Otherwise, I would’ve ended up giving free pizza’s, . So, so that’s, that becomes one KPI to measure, which we measure on weekly basis to see how many free pizza’s are being given. Okay. Uh, to, to those, uh, customers. And, and I’m happy to state that, uh, from last one month we have been observing and there are no free pizza’s, which we, which is. Wow. Which offer to the customer. So, super, a good job done by the operation team on that brand. Yeah. Now coming back to the adoption, uh, so this is a slow and steady process. I cannot say a success will happen very soon or, or, over time. Very. Yeah. Yeah. But, uh, it’s the strategies that, uh, we are focusing on how we are going, going to adopt the, these customers.
So, so, uh, so, so how are we going to reach out to these customers? So I’m not doing an aggressive marketing campaigns when it, uh, reaching out, uh, to these customers over the top, uh, yeah. Yeah. Or top marketing. What, what we are, um, trying to do here is that we are doing a very targeted marketing for these customers.
So anywhere who’s around two kilometers zone of the store, that’s the customer who’s more likely to be visiting the store. And that’s where we are offering them two minutes guarantee ads through these social media platforms. Uh, even the Google, uh, such, uh, ads. And that’s where we are measuring the success of the, the ads spend versus the conversion that is happening.
which is, which is in line to the KPI that we wanted to achieve. Okay. Uh, so, so that’s, that’s working. Um, uh, there are, there are users who have increased. So if I have to see from a perspective of the mix that I have in terms of the delivery and the carryout on my online auto business, yeah. So that has increased.
So the carry out, what used to be earlier is, is higher than what is it is now. Ok. There are times user have adopted to this carry out side of the business, but they’re not doing a check-in because, uh, they, they, they just see the order is there. So they will just pick it up. Got it. Okay. Uh, but wherever there is a queue bursting happening, uh, cues are happening, that’s where they will end up, uh, using this method and, and delighted by the experience.
Paula: Yeah, and it goes back to the same point we talked about Mayank in terms of getting the basics right for loyalty. So it’s nothing got to do necessarily with coupons or points or anything technical. It’s purely operational. You are delighting them, creating that moment of magic. And then of course, the advocacy and the loyalty builds over time. So, I was really intrigued. You mentioned that, um, social media, um, in terms of obviously your overall marketing strategy because, you know, it is such a huge country, um, to find people who will love the Domino’s product, um, and be responsive and, and I suppose to, to find people who will eat it on a frequent enough basis, I guess is is your core objective.
So will you tell us a bit about, that particular program and the segmentation approach you’ve taken, because I know you won an incredible award with the International Loyalty Awards this year in London. I was there, um, and celebrating when, uh, when Domino’s won this incredible one. So tell us a bit about that entire initiative.
Mayank: This year has been raining awards for us. Actually.
Paula: That’s true actually I should have mentioned the other five, go on.
Mayank: Yeah. So there, uh, in fact this week, uh, Monday we started with our award from branch for the Mobile Growth Award, again, for using best use of first party data. Okay. This second on was on Tuesday we won the Marketing Excellence award for, for excellence in data marketing. Okay. And, uh, insights. So, wow. So. Congratulations. I’m so proud of my team at this moment. Uh, amazing. Especially the partner that we work with. Yes. Uh, which is, which makes it all special when it comes to, when you see these awards as an outcome of what the kind of work that we have been doing. Yes. Coming back to the case study. So, so this, this case study has been, uh, and I’ll start with the same problem which I was, uh, uh, telling you initially is the frequency of the customer and the way they consume, uh, pizza and street, the pizza, uh, into their, uh, pallet when it comes to consuming it. Yeah. Uh, Uh, from the kind of offering this country has and what their actual taste pallet is, and the likeness of the food is, so we sit at a very high number of, uh, single frequency use customers. Yeah. Uh, so the key, key important case for us becomes is, is that we have lot of customer data coming in. Uh, there are high number of single frequency customer who, who are there. Yeah. Uh, As a, as a company, the, uh, the best thing we should start utilizing is to see how these customers who have interacted with us, uh, for the one time, how can we convert them from one time to a, uh, to a two time, two timer, or a two time or two, a three timer. Yeah. That’s where we, we came up. Uh, with this whole program. Now, this whole program has multiple phases to it. I, which is one is then when someone talks about loyalty or a loyalty program. Yeah. Most of the retail company, they talk about a loyalty program because their first objective is to get the data of the customer.
Yeah. As soon as you start the loyalty program, you, you would start getting at least the customer identity into your system. That’s where you will be able to recognize what has been his likeness, what he has been consuming, and, and how you are going to then communicate in future. Domino’s has, has a pretty ease on that part because we are into our delivery business most of the time.
The consumer interact with us is. Is with our phone number because he has to receive delivery. Yeah. So that’s where we, uh, we ensure that whenever there is an order into the system, it should be with a, a customer details so that we can offer them a better, uh, service, uh, when dealing with them in the future.
So that’s where it start with. So, which is the first part, so we call it as a 3D framework into our system. Okay. Which is the first D is about the data collection. So collecting the data is behavioral data, is consumption data, the kind of product he has been consuming. Then the other dcom, which is the data segmentation.
That’s where we, we. Sit and try to segment these customers into multiple buckets. Uh, and track tracks is what we call it, which is now these tracks are built and we keep improvising on these tracks to understand and segment these customer into multiple buckets so that we can reach out with a better com communication in future.
Now these tracks are built. One is the simple track that we everyone uses as the RFM model. Yeah. recency, frequency, and monetary segmentation. We, we went little ahead on that front is, uh, we started to use the machine learning algorithms, uh, to figure out these customer into a more better segments, which is more towards the, the behavior, for example.
The tickets in which category? categorization of these tickets they are, what kind of the offer they have been consuming, what kind of the pizza’s likes they have. Okay. What are the, the side products they’re consuming? And then we, we use these pro, these all data into the system to then segregate using an algorithm, to different, make them a differentiated categorization of these customer. And hence we got to know the high number of tracks to segment these users other than the regular RSMs. Yeah. So which is where the data segmentation happened. And the last D is the is the data utilization. So now the data utilization is, is the key area where we use this data in two multiple ways.
So segmentation has already happened. Yeah. Now the first, when, when it comes to the data utilization, they, we follow another framework, which we call it three E framework. Okay. So the three E framework is all about, uh, the first e is about Expansion. So I am, I was talking about Domino’s Indonesia and its growth story about how we have been increasing and adding more stores.
Yeah. So adding store is, is, is something which, Um, the old traditional way of adding store is that you’ll go and look around into the market. You’ll see how much has been the footfall, what is the general audience, the how are the people around and, and is there a competitor? What has been a competitor footfall. And that’s where the people used to take a decision in a retail business. Yeah. We. . We are a tech-based company. We are a data-driven company, so let’s go one step ahead. And that’s where we, we came up with, uh, uh, store predictor model. Now, what this store predictor model does is that it uses the, the data which is available for, thats, particular spot. So suppose there is a spot which has been identified, the business with development team, that, uh, this is where we should be opening a store. Now the cost of the store and every other related cost versus the, the data which has been collected. Uh, and there are sources, which from where the data is available, at what the competitors nearby, what is the general, uh, audiences around what is the income level? Uh and, and then what kind of the male, female, uh, uh, genders are available and those kind of data gets there and fitted into the system. This is store predictor model. Then we use a surrogate store. Now this surrogate store, what it does is that, uh, which is a similar looking store somewhere, uh, which is already running. and then we use that surrogates store as a model sales data and try to, uh, then put it into the store predictor model and predict what would be the, the, the revenue of this pro, this store in future. Okay. How, what would be the payback pay time and how, how soon can we expect that payback from the store? And if it is within the zone, that’s where a decision is made to open the store.
Wow. Which ensures that whatever the store we are opening yeah. They are going to be profitable to us. So yes, so, so that has been the growth strategy and that’s how we use this data in terms of the expansion. My goodness. The other is, uh, the E is about building Efficiency. Of course there is a data which is capture from an operational point of view.
Yeah. And, and see where are the lacks, and how can we use to make it those systems, those SOPs more efficient and whether there is a use of, uh, technology that has to come and make a play so that you can reduce your operational cost, uh, and, and be more effective in terms of delivering the tastiest pizza’s to our customers, so which is, which comes about, talks about the use of platforms like, uh, the, because Domino’s operates in, in a territorial model. So there are trade zones which we operate in. Yeah. To ensure that we do 30 minutes guarantee. So there’s a trade zone, which in which, uh, every Domino’s operate would operate. And now to have those trade zones and managing it increasing and decreasing over the period of time because your road and track keeps changing your traffic situation, changing over a period of years. So that’s where we have a collaboration with, uh, Google Maps as well as a company partner, which helps us create those maps. There’s a case study about this also on Google, which is available, amazing. Has been using Google Maps for their expansion strategy and making building efficiency.
Paula: Great. Wow. We’ll get that from you as well. Yeah, we’ll just make sure to share that Mayank, that sounds like the kind of thing that we should all be reading, maybe.
Mayank: Just show, I’ll, I’ll share. It’s a blog and a case study, uh, published by Google itself. Uh, okay. Yeah. Uh, on Domino’s Pizza Indonesia. Okay. And the last E is, uh, is about the marketing, which is enhancing.
So enhancing the marketing abilities. So when it comes to the marketing abilities, the first I will start with the, the E of expansion. Yeah. So whenever we are opening a newer store, uh, you have to acquire newer customer, you have to make a reach out. That’s where the, what we do is, Again, those surrogate stores, their customer data is with us.
We try to find out, look-like customers of the same, uh, audiences and try to acquire them in the specifics, uh, area where we are opening the store. Which makes our job more target oriented. . So we are not shooting in the dark. Yeah. We’re only reaching out to the customer who are more probable to be a Domino’s customer.
So that’s the, that’s how, uh, a new store opening marketing campaigns goes on . So to ensure that we are cost effective and yeah, it is enhancing our market. Uh, then the, the other is where, this, this single frequency and, and, uh, two multi frequency conversion and ensuring we get an incremental ROI, that’s where we have a big CLM program in place. Now the, so, so all the segmentation that we have done Uh, it translates into track. And this is their recency into the system. They are being targeted on a daily basis. Now targeting them onto a daily basis is, is, uh, there are a certain set of users who are part of that track and the segment on a given day. Okay. Uh, coming from an Indonesia market where the cost of communication is so expensive that if I have to send an SMS or WhatsApp Yeah. It’s, uh, it’s 500 IDR, which is roughly like 3 cents. Uh, it, if I have to do a dollar conversion, which is expensive if I have to send it to all, to every day, so, so I would be leading money and which is not, uh, right proposition. So that’s where we use a propensity model to predict, uh, who are the users who are having the highest tendency to place an order on a given day. A selection is made on a top 10 decile, and that’s where they’re being targeted. So these, so on a daily basis, um, they are around, uh, 15 to 20 tracks, and then when those are converted into multiple, Uh, these, uh, uh, their recency into the system, it translate into actually a 1500 kind of tracks into the system Wow. On which a daily communication is being sent. Okay. Now, these communication are being sent with respect to the, the communications, uh, uh, of promos. Uh, to make sure that they do, uh, place an order with us. Ok. So, propensity model is, uh, predict, propensity model is working to ensure that we are reaching out to the right customer when we are doing, uh, uh, expensive con uh, communication, which is in form of SMS and WhatsApp.
We have actually left, uh, we are not doing any of the SMS these days. We, as I was informing you, the WhatsApp is so big. Yeah. So. . So switching from SMS to WhatsApp is, was the makes more sense. And that’s where the, uh, we have switched from the, uh, the SMS because the response rate was higher. Yeah. And as soon as the response rate is higher, you, you would see that your communication cost is actually lowering down because your response rate is getting higher compared to an SMS.
Yeah. So that’s where we try to, uh, to get, to optimize the cost, uh, onto the reaching of the customer. And then we keep tracking these customers onto a control group. , uh, to see that what has been the control group performance, and then it’s been measured in terms of the incremental revenue that has been generated.
Yeah. And incremental ROI becomes actually the target. For as an KPI for my team and my partners, and that’s where they’re measured on. So they’re not measured on what has been the response rate, what has been the ROI or the, the revenue generated. What has been the incremental ROI is one big measurement that we look into it.
If that is a line, then the other mattresses are being seen. Yeah. If that’s not a line, then, then what? The question is that what went wrong? So it’s an ongoing process where we have to keep optimizing each track. We have to see which track is working, not working. Is a promo not working? Yeah. Or is it something else that needs to be tweaked, or is the, is the, the algorithm that we are using, it requires certain changes to ensure that the, the, the selection of the users who are being targeted or communicated.
Is more precise and, and the selection is made, which is actually going to place an order. Yeah. Uh, so, so that has been the story of this new case study, which, uh Wow. Which is, which was published along with Capillary our partner. Yes. Uh, and, and it has been winning our awards. And I’m happy that, uh, our team has been doing a very tremendous incremental.
Paula: I was just about to say, it would be remiss of us if we didn’t say thank you to the guys in Capillary for introducing us to you. Um, they are clearly doing an extraordinary job, and I was thinking of asking you, you know, why did you choose them as your technology partner for this project? But I think the fact that you’ve given them such an incredible target in terms of incremental ROI and they’ve been delivering on that, I mean, that, that sounds like that must be the reason isn’t it?
Mayank: I think they’re, they’re, they are more like me, so, okay. So I love challenges. They also looked forward for a challenge, to work with me. Yes. And, and challenge the KPIs that we want to want them to achieve. Yes. Uh, so it has been a very good journey with them working for the last three years with them. Yes. Uh, there, there has been the learnings on both the. Uh, they’re learning from us. I learning from them. Totally. Uh, so, so super happy so far. Uh, and a great partnership. But, but this, these awards are making actually a job more tougher because now to win another award, it has to be Yeah. Better than what we have done this year.
Paula: Totally. But, but what did strike me actually when I saw a demo of the capillary technology as well. Mayank was this capability that you’ve obviously adopted with WhatsApp, and I guess my understanding was that you had only gotten as far as using, uh, the WhatsApp capabilities for communication, but now you’re telling me that you actually got the ordering capability as well, so, I think that’s extraordinary and I’ve said it so many times on the show, like I really believe messaging platforms are, have a really important role to play in the future of loyalty programs.
You know, so whether it’s transactional or relationship building, whatever the objective might be, like, I think it’s amazing that you found a partner that can deliver that for you. Cuz I think you told me you were having to do it manually in the beginning before the automation was built.
Mayank: Yeah, so, so my role, my clear focus was that I have to ensure that we adopt to that stuff faster than anyone else do.
Yeah. And that’s where if the, there’s a timeline which is required for an implementation to happen, I will not sit and wait for it and, uh, to start doing it manually. So that’s where, uh, we ensure that even if, uh, if, if it’s decided at the WhatsApp, the channel, which is giving a better return Yeah. Then, uh, Then if, even if there is a hard work that needs to be do done, which is through manual intervention, it has to be done. And that’s where we kept doing it. It also increases the pressure Yeah. Onto the partners and the team. Yeah. That how soon can we make it automated so that the effort that is going in reduces.
Paula: Everybody’s relieved, you know, put all the pressure on the IT partners. I’ll make them, make them get the solution.
My goodness. Well, I suppose just again, a huge congratulations, Mayank in terms of, first of all, the International Loyalty Award, because you know that’s all about analytics and use of data, which I think is perhaps the most hotly contested category. And I’ve been a judge for those loyalty awards myself.
And I looked at the short list that you were up against. I think there was nine other global brands. So for Domino’s Indonesia to come out as the award winner was a huge success. And as you said, there’s been, uh, several awards just this week already, so. Even more, I suppose, expectations, I’m guessing in terms of the, the future for Domino’s in Indonesia. So very exciting for us to have you on the show. And I think that’s actually all of the questions I had for today, Mayank, um, is there anything else that you think we need to talk about before we wrap up?
Mayank: I would just, um, want to say to all the marketers out there, uh, I believe in one, uh, strategy, which is, uh, which I want to disclose right now, which is, eat rice and what I might do,
So that’s something which I have made by my own. So . Ok. When it comes to, to, to, to engage your customers, uh, and that’s, there’s another jargon that I use most as, uh, as being, it’s calling it as less. So anything which you do for your customer is, will always be less. And, and why it is less because you. It has a different full form.
So it has to be live in real time, whatever you are doing. Yeah. It has to be engaging. Uh, and, and which is efficiency has to be in place. The other s i I do it to be, it should be a super easy Yes. In terms of the use. and, and simple. And the last is, is that it is driving a successful ROI.
So, so live, engaging, efficient, super easy. Yeah. Successful ROI is what is your customer for you, uh in terms of when you are trying to engage with them. Yeah. And when I say the rice, the rice is same, which is you. The first R stands for retention, the second I stands for Increasing the ticket size.
Okay. The S, the C is for ensuring a better Conversion. Yeah. And the last E is your Engagement. And when I say MI2, it is measure, then improvise and innovate, between all four pillars, which I have defined, which is Retention, Increased ticket size, Improve conversion and the last Engagement, you have to measure, improvise, and innovate.
That is what the key is, a key message from me to all the marketers who would be listening to me at this point of time.
Paula: Got it. And I’m exhausted listening to you . That’s incredible. Yeah. And very well thought through as well Mayank. I love the, the clarity of focus because again, I think loyalty professionals, sometimes we don’t get the level of respect that we deserve.
And I know that Domino’s Indonesia, um, has really, you know, started to get that respect, uh, largely as a result of some of the, the work that you’ve been doing with your team there, so, Again, just want to say a huge congratulations on everything you’ve achieved so far, uh, to your partners in Capillary for doing such an amazing job supporting you with all that machine learning and, and, and integrations that you’ve needed in the segmentation.
It’s, it’s absolutely extraordinary. And also the final point. I remember both times that I’ve met you and I ask how, how you’re doing. You have a wonderful phrase of saying you’re always good. So maybe just as a, a closing comment, tell us a bit about why you say that.
Mayank: It’s all about positivity. I always want to be positive in my life.
So , I believe there is nothing bad can happen unless I start believing it’s bad. Yeah. So I have to first myself, make myself believe that everything is good. Yeah. So whenever someone ask me, I say, I always great. That’s what I respond. And in fact in Indonesia, when someone is asking me, I say, Sal Lubi, which means same in the Bahasa
Paula: Oh wow. Wow. Well, I will tell you Mayank that my nickname in Ireland is positive Paula. So we share the same mindset. .
Great. So it’s Paula and Mayank both Sal Lubi .
Totally, totally. I’ll have to learn it in Indonesian. Listen, it’s been an absolute joy Mayank to to talk with you today. I really hope that you will stay in contact with us and come back on the show again, hopefully next year.
Uh, I’m sure there’ll be lots more awards. I might even get to see you in London. Please God, if you get to the International Loyalty Awards. So with all of that said, Mayank Singh, uh, Chief Digital Officer at Domino’s Pizza in Indonesia. Thank you so much from Let’s Talk Loyalty.
Mayank: Thanks Paula, and I hope the, I want to say thank you to all the listeners, , who has been listening to me patiently, , uh, and thanks. I look forward to speak to you again in future. Definitely. I’ll be coming back.
Paula: Thank you.
This show is brought to you by the Australian Loyalty Association, the leading organization for loyalty professionals in Asia Pacific. Visit their news and content hub for the latest loyalty insights from around the world. Or why not submit your own article for publication for more information on their loyalty services and networking opportunities.
Thank you so much for listening to this episode of Let’s Talk Loyalty. If you’d like us to send you the latest shows each week, simply sign up for the Let’s Talk Loyalty Newsletter on letstalkloyalty.com. And we’ll send our best episodes straight to your inbox, and don’t forget that you can follow Let’s Talk Loyalty on any of your favorite podcast platforms, and of course, we’d love for you to share your feedback and reviews.
Thanks again for supporting this show.