Monetization project | Jubilant FoodWorks
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Monetization project | Jubilant FoodWorks

Product is not monetizing- The litmus test

The Domino's India App is a key digital platform that enables customers to easily order their favourite Domino's Pizza meals. Featuring a streamlined interface, customizable options, real-time order tracking, and access to exclusive discounts, the app enhances the overall ordering experience.


CategoryDetails

Founded

1995

Flagship Brand

Domino’s Pizza

Number of Domino’s Stores in India

2,000+

App Downloads

20M+

Core Offerings

Domino’s Pizza, Dunkin’ Donuts, Popeyes

Focus on Technology

Began in 2021 to enhance app adoption

Market Leadership

One of the largest food service chains in India

Revenue (FY 2024)

₹5,000 crore+

Headquarters

Noida, Uttar Pradesh, India

Core Value Proposition of Domino's App

The core value of the Domino’s India App is delivering a fast, affordable, and convenient pizza experience through:

  • Flexible Ordering: Delivery, takeaway, and dine-in options, delivery to train for all occasions.
  • Speed and Reliability: 30-minute delivery promise with real-time tracking.
  • Affordability: Value-driven offers, combo deals, and discounts.
  • Seamless Experience: User-friendly interface, easy payment options, and customization


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Product is monetizing

Domino's India App is already monetising so let's deep dive into two key areas:


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Free to Paid Conversion Campaigns


Plan Name

Pricing (₹)

Offer Details

Campaign Pitch 🎉

Ramp-Up Milestones

Success Metrics

Free Plan

₹0

- 3 days of free delivery.

🎉 Try Domino's Premium Experience for Free! 🌟 Unlock exclusive benefits at no cost for 3 days.

- Highlight trial benefits like free delivery and app-exclusive features.

- Number of sign-ups for the free plan.



- Access to regular Domino’s offers.


- Send personalized reminders about trial expiry.

- Conversion rate from Free Plan to paid subscriptions.



- Real-time order tracking and seamless app features.


- Encourage trial users to explore menu customizations.


3-Month Plan

₹99

- Unlimited free deliveries for 3 months.

💸 Save More, Worry Less! 🚚Unlimited deliveries, free sides, and priority service for ₹99 only.

- Promote exclusive benefits like free sides and unlimited deliveries through in-app notifications.

- Monthly active subscribers.



- Free sides with every 3rd order (garlic bread, dips, or desserts).


- Offer limited-time discounts for first-time paid subscribers.

- Retention rate after 3 months.



- Exclusive member-only discounts and deals.


- Use urgency campaigns like "Upgrade now—offer ends in 24 hours!"




- Priority dine-in and takeaway service (skip the queue).




6-Month Plan

₹149

- Unlimited free deliveries for 6 months.

🍕 Double the Perks! 🎁 Get dine-in discounts, free sides, and loyalty rewards for ₹149.

- Offer loyalty rewards and milestone perks for users nearing the end of their 3-month Plan.

- Number of upgrades from 3-Month Plan to 6-Month Plan.



- Free sides with every 3rd order (expanded menu options).


- Promote dine-in and customization discounts as key features of this plan.

- Customization usage rates.



- 10% discount on pizza customizations (e.g., extra toppings or crust options).


- Highlight value with push notifications for frequent app users.




- Enhanced dine-in perks such as reserved seating and special service.






- Loyalty points are on every order and are redeemable for future purchases.




Annual Plan

₹399

- Unlimited free deliveries for 12 months.

🌟 Go Premium, Go Annual! 🚀 VIP perks, premium sides, and customizations for ₹399.

- Highlight cost savings and VIP perks compared to shorter-term plans.

- Annual Plan adoption rate.



- Free premium sides with every 3rd order (e.g., speciality desserts or premium appetizers).


- Offer annual-specific perks like early access to new menu items or special events.

- Increased spend per user (ARPU).



- 15% discount on all customizations.


- Target campaigns to frequent 6-Month Plan users for easy upgrades.




- Priority customer support and early access to new menu launches.






- VIP dine-in benefits, including priority seating and complimentary drinks.














An image is to be added with the Get Started Option!






Cross-sell and Upsell Options


For Cross-sell:

image.png

AspectDetails

Present Scenario

- CTR on cross-sell widget is 11%. Limited visibility due to horizontal scrolling.

- Categories: Breads & More, Beverages, Desserts & Dips.

- Challenge: Restricted visibility decreases user engagement.

Campaigns and Features


Redesign Widget:

Show 3 rows for cross-sell items to reduce the need for scrolling.


Social Proofing:

Highlight “Most added items” or “Top picks by others.”


AI Personalization:

Recommend items based on user behaviour (e.g., past orders).


Anchoring Effect:

Comparative pricing encourages add-ons (e.g., "Add for ₹29").


Previously Ordered Items:

Showcase favourite or frequently purchased items prominently.

Success Metrics

- Increase CTR to 18% within 3 months.

- Maintain a 30-31% conversion rate for cross-sell widgets.

- Improve AOV by 15%.

Fail-Proof Milestones

-

Month 1:

Test the new layout with 20% of users and measure engagement.

-

Month 2:

Scale AI-driven recommendations and add social proof tags.

-

Month 3:

Refine underperforming categories based on analytics.

Channels and Ways

-

In-App:

Place the cross-sell widget below the cart and on the checkout screen.

-

Push Notifications:

Send personalized nudges like “Add dessert to complete your meal.”

-

Email:

Highlight frequently paired items in post-order communication.

For Upsell

image.png

AspectDetails

Present Scenario

- 14% users scroll through upsell options; 4% click through to add or customize items.


- Upsell widget lacks contextual relevance and personalization.

Campaigns and Features

-

Dynamic Suggestions:

Show contextual recommendations after pizza customization.


-

Social Proof:

Highlight popular upgrades (e.g., “70% chose cheese burst”).


-

Scarcity Effect:

Add urgency (e.g., “Upgrade now for ₹50, limited time only!”).


-

AI Recommendations:

Leverage user preferences and behavior to suggest premium options.


-

Gamification:

Incentivize upgrades with loyalty points or rewards.

Success Metrics

- Improve upsell CTR from 4% to 10%.


- Achieve a 35% conversion rate for upsell widgets.


- Increase AOV through successful upgrades.

Fail-Proof Milestones

-

Month 1:

Pilot contextual upsell suggestions for 20% of users.


-

Month 2:

Add live social proof tags (e.g., “#1 upgrade today”).


-

Month 3:

Refine recommendations based on user feedback and analytics.

Channels and Ways

-

In-App:

Place upsell widget prominently during pizza customization and checkout.


-

Push Notifications:

Personalized messages like “Upgrade your pizza to large for ₹50.”


-

Gamification:

Display pop-ups like “Upgrade now and unlock 50 loyalty points!”

Flowchart to understand the upsell and cross-sell flow

image.png

























Substitute pricing

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Where Does the Domino's App Stand Out?

The Domino's App differentiates itself with features that substitute like Swiggy or Zomato don’t offer:

  1. Brand-Specific Rewards: The exclusive Cheesy Rewards program allows users to earn points redeemable for free Domino's products.
  2. Enhanced Customizations: Full control over pizza toppings, crusts, and sauces tailored to individual preferences.
  3. App-Exclusive Offers: Unique discounts like BOGO and app-only deals that provide better value than third-party platforms.
  4. Seamless Ordering: Faster order processing and accurate delivery tracking due to direct integration with Domino’s systems.
  5. Guaranteed Quality: Ensures consistent Domino's quality without third-party variability.


Comparison of Ordering Methods for Domino's

MethodEase of UseAverage Time to Order CompletionRewards and OffersFamiliarityCore UsersAdditional Charges

Domino's App

Easy

7-10 minutes

Cheesy Rewards; free delivery on select items.

High among regular customers.

Working professionals, students, and families seeking convenience.

Generally lower; occasional delivery fees.

Swiggy

Easy

5-7 minutes

Free delivery on select items; discounts.

High due to large user base.

Busy professionals and variety seekers.

Platform fees; surge pricing during peak hours.

Zomato

Easy

5-7 minutes

Zomato Gold discounts; free delivery offers.

High due to widespread usage.

Value-conscious diners, students, and Zomato Gold users.

Delivery fees, surge pricing, and taxes.

Calling Domino's Directly

Medium

Varies; longer due to manual processing.

Possible phone-exclusive deals.

Moderate; depends on preference.

Elderly customers and those less tech-savvy, emergency cases like phone not working or rapport with a store.

Minimal; standard delivery charges only.

Dine-In/Takeaway

Easy

15-20 minutes (prep time)

In-store promotions; physical coupons.

High for traditional diners.

Families and groups prefer in-person dining.

No delivery or platform fees.

Domino's Mobile Website (PWA)

Easy

7-10 minutes

Same as the app, depending on implementation.

Moderate; PWA familiarity varies.

Casual users access via mobile browser.

Generally lower; occasional delivery fees.


Detailed Comparison for Apps: Domino's Vs Swiggy & Zomato


AspectDomino’s AppSwiggyZomato

What Customers Pay For

- Cheesy Rewards, exclusive app-only discounts, and free delivery on select items.

- Platform fees, delivery charges, and occasional discounts. Subscription is available like Swiggy Black or One.

- Platform fees, delivery charges, and discounts through Zomato Gold or promotional offers.

Ease of Use

- Direct access to Domino’s menu with seamless customization options.

- Intuitive interface but involves multiple restaurant choices, which can overwhelm users.

- Similar to Swiggy, but adds clutter with too many recommendations and unrelated options.

Delivery Functionality

- Domino’s manages its delivery network, ensuring food quality but sometimes facing delays.

- Relies on third-party logistics, offering variety but with delivery times that may vary.

- Similar to Swiggy, dependent on third-party delivery with occasional delays during peak hours.

Quality Assurance

- Guaranteed Domino’s quality with direct control over the entire process.

- Food quality can vary as it depends on individual restaurants and aggregators.

- Similar to Swiggy, with quality influenced by restaurant partners.

Rewards and Loyalty

- Cheesy Rewards program exclusive to the app, offering redeemable points.

- Offers general platform-wide discounts but lacks brand-specific loyalty programs.

- Zomato Gold offers perks but lacks specific brand-focused rewards for Domino’s customers.

Affordability

- Transparent pricing with frequent app-exclusive deals like BOGO and scratch discounts.

- Additional fees (platform, surge, or weather charges) can make orders expensive.

- Similar to Swiggy, with additional charges reducing affordability for frequent users.

Fulfilling Needs Without Paying

- Dine-in or takeaway from Domino’s outlets, skipping delivery charges and using offline coupons.

- Opting for restaurants with free delivery offers on Swiggy.

- Using Zomato’s free delivery deals for selected restaurants or opting for dine-in options.


Insights from the Comparison

  • Domino's Unique Position: Its in-house delivery ensures consistent quality, although delays may occur during peak hours.
  • Why Customers Use Swiggy/Zomato: They provide variety and convenience through multiple restaurant options, even if delivery quality and timing are inconsistent.
  • Opportunities for Domino’s: Focus on reducing delivery times and promoting its quality assurance and loyalty rewards to retain and attract users.


User Research Insights!


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Whom to charge?

Monetization design

Add an introduction for monetization connecting it to your Litmus Test and User Insights)

Who to charge?

(Conduct an RFM Analysis and identify the users that you are monetizing and think about why them and not others?)






Pricing page

Existing Pricing Page:

Domino's Pricing Page Teardown

How is Domino's Monetizing?

Domino's follows an output-based model, charging users per order for food, delivery, and add-ons. Unlike Swiggy One or Zomato Gold, it lacks subscription plans, relying on upselling and cross-selling to boost revenue


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Key Observations

  1. No Bundling Options:
    • Issue: No subscription model like Swiggy Black for loyalty building.
    • Opportunity: Introduce plans offering free delivery and exclusive deals.
  2. Coupons Section:
    • Issue: Located in the top-right, reducing visibility.
    • Opportunity: Add a prominent “Top Coupons” widget with nudges like “Save ₹XX now!”
  3. Free Delivery Highlight:
    • Phenomenon: Loss Aversion. ₹45 savings emphasize value.
    • Opportunity: Highlight cumulative benefits like “Save ₹135/month.”
  4. Best Offer Not Auto-Applied:
    • Phenomenon: Endowment Effect. Users value manually applying discounts.
    • Opportunity: Auto-apply the best offer with manual override.
  5. Upsell Nudge (₹51 More):
    • Phenomenon: Anchoring Effect. Targets drive AOV.
    • Opportunity: Personalize with suggestions like “Add Garlic Bread to save ₹45.”
  6. Delivery Fee Slash (₹45 → Free):
    • Phenomenon: Slash Pricing. Visual reductions enhance perceived savings.
    • Opportunity: Clarify thresholds for free delivery.
  7. Final Price Slashing:
    • Phenomenon: Price Contrast. Discounted price highlights savings.
    • Opportunity: Nudge users to add extras like desserts for more savings.

What’s Working?

  • Effective use of Loss Aversion, Endowment Effect, and Slash Pricing.
  • Visual savings and upsell nudges drive conversions.

What’s Not Working?

  • No subscription options for loyalty.
  • Coupons lack visibility; manual effort creates friction.
  • No place to go back to the menu to add items, no upsell or cross-sell.

User Insights:

  • Offers lack clarity and aren’t prominently displayed.
  • The cart page is cluttered with no clear visual hierarchy.
  • Too many options without guidance increase decision time.
  • No personalized recommendations based on user preferences.
  • Discounts aren’t visually highlighted (e.g., scratched prices).
  • No progress indicators for rewards or milestones.
  • Confusing presentation of combo deals and bundled offers.
  • Overwhelming customization options without preset suggestions.

Redesign your Pricing Page

Approach 1: Revamping existing Flow

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1. Highlighting Savings Through Scratched Prices

  • Displaying scratched prices creates a visual cue that emphasizes discounts and perceived value.
  • This approach leverages the anchoring effect, where users perceive the current price as a significant saving compared to the original price.

2. Creating Ownership Effect with Free Sides on First Order

  • Offering free sides (e.g., garlic bread or dips) on the first order provides a sense of ownership, encouraging users to commit.
  • This taps into the endowment effect, where customers value what they feel they "own" and are more likely to engage further.

3. Surround Effect and Bundling

  • Introducing a bundling strategy, such as highlighting that “all prices are discounted due to an offer,” enhances the perceived value of subscription plans.
  • The bundling approach simplifies decision-making and appeals to users seeking comprehensive benefits at a reduced cost.

4. Establishing Trust Through Visual Cues

  • Building Heritage Trust: Adding a banner like “Serving Since 1961” conveys Domino’s long-standing credibility.image.png
  • Social Proofing: Including dynamic elements such as “2K customers ordered this today” and marking items as "Bestsellers" reassures users of product popularity and reliability.
  • Emphasizing Quality: Highlighting phrases like “organic products” and “antibiotic-free chicken” aligns with health-conscious consumer preferences and builds trust in product quality.Screenshot 2024-12-28 at 11.06.26 AM.png

System 1 Design

  1. Decision Flow for High-Frequency Products:
    • Fast, intuitive actions are critical for a product like Domino’s, where users expect convenience and speed, similar to Swiggy’s quick food ordering process.
  2. Low AOV and High Frequency:
    • Since food orders are low-risk and recurring, the design focuses on reducing friction with instant visual cues (scratched prices) and bundling offers.
  3. Emphasis on Emotional Triggers:
    • Features like free sides, bestseller tags, and social proof appeal to emotions, ensuring quick decisions, unlike high AOV products (e.g., investments on Groww) that require detailed, thoughtful processes.
  4. Simplified Interaction:
    • Highlighting discounts and trust factors ensures users can make decisions effortlessly, aligning with the need for fast, low-effort engagement for high-frequency use cases.

This System 1 design approach ensures a seamless, engaging, and efficient decision-making flow tailored to Domino's high-frequency, low-risk product category.


Other Revamps:

  1. Discover page where users can share reels and food-related content, fostering trust and likability by showcasing authentic customer experiences and relatable recommendations.Screenshot 2024-12-28 at 2.16.26 AM.png
  2. Milestone Approach:

image.png

The milestone-based approach rewards users progressively, offering increasing discounts on each order (e.g., 30% off the 1st pizza, 40% off the 2nd, and so on), culminating in a free pizza after six orders. This strategy incentivizes repeat purchases, boosts engagement, and enhances customer loyalty by providing clear, tangible benefits. Users are motivated to complete the milestone journey, fostering a sense of achievement while enjoying consistent savings and rewards.


Approach 2: Introducing the Subscription Model

Implementing a subscription model for Domino's India App offers a steady revenue stream while enhancing customer loyalty. This approach caters to frequent customers by providing tangible benefits, improving convenience, and fostering long-term engagement.








Why Subscription Models Are a Strong Strategy:

  1. Steady Revenue Stream: Ensures predictable cash flow with recurring payments.
  2. Enhanced Customer Retention: Keeps users engaged with ongoing rewards and benefits.
  3. Improved Customer Experience: Offers convenience and perceived value, reducing friction in frequent purchases.
  4. Scalability: Enables Domino’s to upsell higher-tier plans over time.

By implementing a subscription model, Domino’s can secure long-term loyalty while aligning with customer expectations for convenience, rewards, and value specially for Core and Power Users.


Additional Read: Psychology of Pricing


Beyond standard psychological principles, deeper frameworks can be applied to elevate pricing strategies and position plans effectively in the marketplace:

  1. Cognitive Load Theory: Simplifying the pricing structure reduces mental effort for decision-making. Offering 3-4 clear subscription plans (e.g., Free, 3-month, 6-month, Annual) avoids overwhelming users and enables quick comparisons, increasing conversion likelihood.
  2. IKEA Effect: Consumers place higher value on products or services they feel they’ve contributed to. Customization options in premium plans (e.g., discounts on personalized toppings or crusts) create ownership, enhancing satisfaction and perceived value.
  3. Price Bundling: Combining multiple benefits (e.g., unlimited deliveries, free sides, dine-in perks) into a single plan increases perceived value while masking the cost of individual components. This approach leverages the perceived savings heuristic, where customers believe they’re getting more for less.
  4. Relativity Effect: Consumers evaluate a price relative to other options. Presenting the Annual Plan alongside higher perceived-value benefits creates a stark contrast with lower-tier plans, encouraging users to choose the premium option.
  5. Temporal Framing: Reframing annual costs into smaller, relatable units (e.g., "Enjoy VIP benefits for just ₹1.10 per day!") aligns with consumers’ mental accounting, making higher-priced plans seem more affordable.
  6. Endowment Effect: Offering free trials (e.g., "3 days of free delivery") gives customers a sense of ownership over the benefits. Once accustomed, customers are more likely to continue paying to avoid losing those privileges.
  7. Behavioural Segmentation: Pricing can be tailored to different customer personas. For instance:
    • Value Seekers: Highlight savings on delivery fees.
    • Loyalists: Emphasize exclusive rewards and sides.
    • Convenience-Driven Customers: Stress time-saving benefits like priority service.
  8. Hyperbolic Discounting: Consumers disproportionately value immediate benefits over delayed rewards. Immediate perks like “Free sides with every 3rd order” ensure engagement while fostering long-term commitment.
  9. Fairness Heuristic: Transparent communication about pricing rationale (e.g., "Get the Annual Plan at the best value, saving ₹X!") builds trust and mitigates price resistance


📚 I’d love to recommend these books on Monetization. 💡✨

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Thank you for reading this! Gratitude 💫












When to charge?

When to charge?

(Calculate the Aha Moments and Happy Moments and the Perceived Value attached thereon, try to plot Perceived Value and Perceive Price on a graph )

Identifying which aspect determines value :

The primary value driver for the Domino’s App is Money Saved, supported by other factors that enhance the user experience:

  1. Money Saved (Primary Parameter):
    • The app offers Cheesy Rewards, BOGO deals, and app-exclusive discounts, making it highly cost-effective for families, students, and budget-conscious users. This focus on affordability positions Domino’s as a value-driven brand.
  2. Time Saved:
    • Features like saved preferences, one-tap reordering, and real-time tracking streamline the ordering process, catering to busy professionals and frequent users.
  3. Dopamine Hit:
    • Loyalty rewards and milestone perks (e.g., free pizza after 6 orders) create excitement and satisfaction, enhancing user engagement.
  4. Increased Convenience:
    • A seamless experience with customization options, easy payments, and reliable delivery tracking ensures efficiency and reliability.

Focusing on money saved as the primary parameter, Domino’s App delivers value while supporting user needs for time savings, engagement, and convenience.

User Insights

  • Discounts Attract Users:
    • App-exclusive deals like BOGO and Cheesy Rewards are significant factors influencing users to choose Domino’s over third-party platforms.
  • Perception of Value:
    • While Domino’s offers direct discounts, some users feel aggregator apps like Swiggy or Zomato provide better value due to additional offers and promotions.
  • Affordability for Families:
    • Combo deals and promotions appeal to families, but familiarity often leads them to order from aggregators instead.
  • Loyalty Rewards Lack Clarity:
    • Some users find Cheesy Rewards confusing and don’t feel strongly incentivized, indicating room for better communication and design.

image.png


Competitor Benchmarking: Key Features and Offers

FeatureDomino’s AppSwiggyZomato

Loyalty Program

Cheesy Rewards (redeemable points for orders).

Swiggy One (free delivery, discounts).

Zomato Gold (discounts and free deliveries).

Customization Options

Full pizza customization (toppings, crust, etc.).

Limited customization via restaurant menus.

Limited customization via restaurant menus.

Delivery Assurance

30-minute guarantee (app only).

No delivery guarantee; third-party logistics.

No delivery guarantee; third-party logistics.

Order Fulfillment

Direct in-house delivery by Domino’s.

Domino’s orders are delivered by Domino’s riders

Domino’s orders are delivered by Domino’s riders

Customer Resolution

Faster issue resolution via the app.

Resolution directed to Domino’s (via third party).

Resolution directed to Domino’s (via third party).

Exclusive Offers

BOGO, flat ₹100 off, free sides (with coupons).

Cashback offers, Swiggy One benefits, discounts on bulk orders.

Flat discounts, Zomato Gold offers.

Mode of Payment Offers

Affiliated bank discounts, and cashback on wallets.

Bank offers wallet cashback, free delivery (conditions apply).

Bank offers, wallet cashback, Zomato Gold perks.

Pricing Transparency

Transparent; no hidden fees.

Platform fees, surge pricing during peak.

Platform fees, surge pricing during peak.

Key Insights

  • Delivery Assurance: 30-minute guarantee, which is not available through Swiggy or Zomato.
  • Customer Resolution: Issues are resolved faster on Domino’s App as users interact directly with Domino’s, whereas Swiggy and Zomato redirect customers to Domino’s for third-party orders.
  • Loyalty Programs: Swiggy One and Zomato Gold offer competitive perks, but Domino’s can leverage its Cheesy Rewards and exclusive app-only offers to strengthen loyalty.

This analysis showcases Domino’s strengths in quality assurance, direct delivery, and faster resolution while identifying opportunities to enhance value through improved loyalty benefits and diversified offers

Quantify Results to Align Value with Price

To ensure pricing aligns with user expectations:

  1. Money Saved: Users report saving ₹50-₹150 per order with app-exclusive deals like BOGO and Cheesy Rewards compared to aggregators with additional fees.
  2. Time Saved: Domino’s ordering process (7-10 minutes) is faster due to direct delivery, compared to delays with third-party logistics on aggregator apps.
  3. Engagement: Loyalty rewards like Cheesy Rewards drive 30% higher repeat orders, enhancing perceived value beyond monetary savings.


What to charge for?

Screenshot 2024-12-29 at 11.58.01 AM.png

Core Value Proposition of Domino’s India App

The Domino’s India App delivers a fast, affordable, and convenient pizza experience through:

  1. Flexible Ordering: Options for delivery, takeaway, dine-in, and even delivery to trains.
  2. Speed and Reliability: 30-minute delivery promise with real-time tracking.
  3. Affordability: Value-driven offers, combo deals, and loyalty rewards.
  4. Seamless Experience: User-friendly app with easy payments and customization options.

Why Output and Access Models?

  • Output: Charges per unit (e.g., pizzas, combos) offer transparency and align with customer expectations for fairness and flexibility.
  • Access: Free access positions the app as a loyalty hub while premium features like exclusive discounts and priority delivery present opportunities for monetization.

These models support Domino’s promise of quality and convenience while maximizing value for both users and the brand.





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