RHETORICAL SITUATION Audience: Franchisee (owner), Managers, and employees of Domino’s Pizza Peterborough Location Context: Monthly employee meeting Details: Presented by an employee

A PROPOSAL FOR A CUSTOMER LOYALTY AND REWARDS CARD AT DOMINO’S PIZZA PETERBOROUGH

OBJECTIVE Provide details on current problems with customer loyalty and sales at Domino’s Pizza Peterborough Indicate what must be done to solve the problems Propose implementation of the vicinity rewards card program at Dominos Pizza Peterborough Explain how implementing this program can increase customer loyalty and sales

Overview 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

1. Introduction Domino’s Pizza Peterborough

Domino’s Pizza Peterborough 2 stores in Peterborough, but only proposing the idea to one store first Both stores are franchised by the same person, so any results from an implemented proposal can be compared to the other store Domino’s currently does not have a customer rewards or loyalty card, only a nationwide online rewards program Less than half of the Peterborough store’s orders are online 1 .Introduction 2. Current Situation 3. Solution 4. Conclusion

2. Current Situation Problem Impact Criteria of Ideal Solution

Problem 1 2752 2 635 3 221 4 107 Low rates of returning customers Low amount of customers ordering more than once a month, or more than once every 3 months 3793 individual customers in October 2,752 ordered only once a month, 73% 635 ordered twice: 17% 55% of customers ordered once in 3 months No incentive for customers to return instead of trying another pizza place Orders per month Number of customers 1 2752 2 635 3 221 4 107 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

PROBLEM The other part of the problem: average order price Month Average order total Sept. $19.43 Aug. $19.10 July $19.40 June $19.48 May $19.45 April $19.74 The other part of the problem: average order price Month of October: $121,825 in sales, but… Average order price was only $19.49 in October. Last Oct was $20.14 Domino’s Peterborough wants that number OVER $20 each month Because a majority of the customers are not loyal returning customers, they are less likely to spend more 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

impact Not enough customers returning more than once every 3 months, or returning at all  small loyal customer base Loyal customers are the ones that spend more per visit Therefore, average order price is lower, and monthly sales are lower 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

Criteria of ideal solution A way to get customers to come back more often A way to get customers to spend more A loyalty or reward card for customers that is easy to use and register for Offer savings and rewards 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

3. SOLUTION Vicinity Rewards Program Costs Implementation Projections Alternate Solution

Vicinity rewards program Vicinity Rewards is a Loyalty Rewards Program and Software operated by Rogers Businesses can register with it and create their own customer rewards program Customers can get points and rewards Entices the customer to spend more per visit, and to visit more often Any business can register. Made for smaller businesses, but larger ones are joining now too 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

$219/month COSTS Unlimited Member Cards NFC scanners for POS system Merchandising Materials Installation and Training Access to Vicinity Account Manager $219/month *$2,628/year 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

Implementation Contact Vicinity Rewards to be part of the program They send the materials Help you set it up with your POS system Register customers in store with only a phone number Customizable rewards and points system Businesses can see their most loyal customers and purchasing habits 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

Projections On average, Canadians have 6.4 loyalty cards each. 92% of consumers belong to a loyalty program With Vicinity, customers visit at least 2x more per year in 2015, Domino’s Peterborough had 17,544 customers If 20% of them used Vicinity… 20% of 17,544 = 3,508 3,508 x $20(projected average order total) x 2 = $140,320 revenue per year minus $2628 implementation costs 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

Alternate Solution Continue to send flyers to residents of Peterborough through mail Has increased sales, but not customer loyalty Spending $3580 a month on flyers and advertising Stay with only that, or pay $219 more a month for increased revenue Cost Effective Innovation Increased Revenue Customer Incentive to return Vicinity Rewards ***** Flyers ** * 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

4. Conclusion Summary Recommendations Q & A

Summary Domino’s Pizza Peterborough wants to raise customer loyalty Also want to increase average order total Implement the Vicinity Rewards Program Benefits and revenue will outweigh the low costs 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

Recommendations Domino’s Pizza Peterborough should contact Vicinity to get further information If interested, try out the program for any length of time 1. Introduction 2. Current Situation 3. Solution 4. Conclusion

Q & A Any Questions? 1. Introduction 2. Current Situation 3. Solution 4. Conclusion