Domino’s recently launched a partnership with DraftKings, one of the leading betting companies, in the US. Who knew you can use gambling to drive business stakeholder behaviors (in this case, Dominoes customers, Dominoes employees, Dominoes corporate, and DraftKings users)
Here is some crazy win-win corporate strategy – Dominoes (pizza company, who btw, innovated in 2009 on the whole delivery/SMS update/30 min delivery window etc.) partner who DraftKing (betting company). DPZ has outperformed Amazon equity price over past decade. The unit economics and per store performance over a long extended duration (same-store sales for “stabilized” asset) is amazing.
DPZ Customer win either way – shot at the pot, 2 minute curbside delivery (from time of arrival) or if > 2 minutes, customers get free pizza next time
DPZ Corporate wins – more mobile activations (so customers can track the 2 minute benchmark) + gamify the “last-mile” delivery + logistics efficiency (from oven to curbside customer’s car) and some innate psychology customer pressure for internal employees (2-minute delivery curbside delivery will be looked at with magnifying lenses)
Draftking wins – House always have a high probability of winning
It also changes the pressure dynamic as well – most corporates KPIs are pushed internally to the team members, but this initiative adds another layer – the external layer – Dominoes customers AND DraftKing users themselves (The DraftKing user, under ordinary situation, have no stake/say/interest, no pun intended, in Dominoes internal KPI, now has a stake in it so this specific KPI)It’s pretty amazing how a pizza franchise chain based in Ann Arbor, MI can push so many interesting impactful initiatives.
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