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.

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.

Monetization Success of Domino’s App

The Domino’s app is a major revenue driver, contributing approximately 30% of the brand’s total revenue, which is around ₹5,000 crore annually. With over 10 million downloads and a 6.5 Million active user base, the app generates significant earnings through:

• High Order Volumes: An estimated 1 million+ orders daily, with an average order value (AOV) of ₹350.
• Targeted Upselling: Recommendations and deals boost AOV by nearly 20% through sides, beverages, and desserts.
• Delivery Fees: Dynamic delivery charges add ₹30–₹50 per order, creating a consistent revenue stream.
• Advertising Collaborations: Partnerships with brands bring in ₹2–₹5 crore annually.

Conclusion: Domino’s App India – A Proven Revenue Driver

The Domino’s app in India has already established itself as a significant monetization platform, contributing 30% of the brand’s total revenue. With a strong user base, daily transactions exceeding 1 million + orders, and effective upselling and delivery fee structures, the app demonstrates a robust revenue model.

Given its proven success, the app has already surpassed the litmus test for monetization. We can confidently move forward to explore enhancements and strategies to scale its impact further.

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

Domino's currently operates as a transactional product with no existing subscription plans or free-to-paid conversion mechanisms. While the freemium model is less applicable for a pizza-focused app, introducing features like free sides or desserts as part of a freemium offering can enhance user engagement and satisfaction. To leverage these insights, a subscription model is proposed to drive customer loyalty and recurring revenue.

Subscription Plans and Details

This approach also allows the app to cater to diverse user preferences, ensuring long-term engagement and growth.

Freemium Model Journey Table

The subscription plans are a solid step towards boosting app monetization. With targeted channels and appealing benefits, they make it easy to turn casual users into loyal, paying customers. It’s a great way to drive steady revenue while keeping users hooked with added perks and exclusive features.

Upselling and cross-selling are essential for increasing Average Order Value (AOV) and driving user engagement on Domino’s app. By implementing personalized, visible, and engaging strategies, Domino’s can enhance customer satisfaction and optimize revenue streams. Below is the structured approach:

For Cross-sell:

Cross-Sell Strategies

For Upsell

Comprehensive Table for Upsell Strategies

Flowchart to understand the upsell and cross-sell flow

Conclusion

The proposed upsell strategies focus on contextual relevance, personalization, and engagement to address current gaps in the upsell widget. By leveraging dynamic suggestions, social proof, scarcity, and gamification, the plan aims to increase upsell CTR from 4% to 10%, achieve a 35% conversion rate, and boost AOV. These strategies ensure a more tailored and effective upselling process, directly contributing to revenue growth.

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

Domino's Vs Aggregators & Other Aggregators

Insights from the Comparison

Positives

• Cost-Effective: No surge pricing, platform fees, or hidden charges; exclusive offers ensure savings.
• Rewards: Cheesy Rewards provide free delivery and redeemable points, unique to the app.
• Convenience: User-friendly interface appeals to professionals, students, and families.

Negatives

• Slower Orders: Average order completion time (7-10 mins) lags behind competitors (5-7 mins).
• Limited Variety: Restricted to Domino’s menu, unlike third-party platforms with diverse options.
• Narrow Audience: Stronger appeal to loyal, cost-conscious users; limited reach for variety seekers.

User Research Insights

Conclusion

Domino’s app stands out by providing customers with better pricing, exclusive offers, and no hidden fees, ensuring a seamless and cost-effective experience. With no surge pricing or platform fees, Domino’s guarantees the best value for its customers, making it a smarter choice compared to third-party platforms.

RFM Analysis is a customer segmentation technique that evaluates user behaviour based on three key factors: Recency, Frequency, and Monetary Value. It helps businesses understand their customers’ purchasing patterns and prioritize actions to maximize engagement, loyalty, and revenue.

RFM- Casual, Core and Power

Breaking down user segments helps us understand how different types of customers interact with the Domino’s app. This segmentation is derived from analyzing user activity, order frequency, and spending behaviour, providing clear insights into how to prioritize pricing and offers.

How This Segmentation Is Extracted

1. Order Recency: When was the user’s last order?
2. Order Frequency: How often do they place orders?
3. Spending Patterns: How much do they spend per order?

Key Takeaways:

• High-Value Segments (54%):
  • Includes Champions, Loyal Customers, and Potential Loyalists.
  • Low to medium churn rates; focus on retention through loyalty programs and premium plans.
  • The highest contribution to frequency and monetary value is critical for long-term success.
• Moderate-Potential Segments (29%):
  • Comprises Promising and New Customers with medium to high churn rates.
  • Need personalized promotions and introductory offers to boost engagement and loyalty.
• Low-Engagement Segments (15%):
  • Includes Needs Attention, At Risk, and Dormant users.
  • High churn rates; prioritize re-engagement campaigns and churn analysis to minimize losses
• Promising and New Customers: Together account for 29%, offering growth potential when nurtured with targeted campaigns.
• Lower-Engagement Segments:
  • Needs Attention, At Risk, and Dormant represent 15% and require re-engagement efforts to revive activity and prevent churn.

This is a sample dataset used to demonstrate how RFM analysis can help create meaningful customer segmentation. It does not reflect real-world Domino’s data but is a tool to guide computation and interpretation.

https://docs.google.com/file/d/1Ek9H1cx9ktE9E9sfEaGi6MQ6TYb3qNui/edit?usp=docslist_api&filetype=msexcel

Existing Pricing Page:

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.

Key Observations

1. No Bundling Options:
2. • Issue: No subscription model like Swiggy Black for loyalty building.
   • Opportunity: Introduce plans offering free delivery and exclusive deals.
3. Coupons Section:
4. • Issue: Located in the top-right, reducing visibility.
   • Opportunity: Add a prominent “Top Coupons” widget with nudges like “Save ₹XX now!”
5. Free Delivery Highlight:
6. • Phenomenon: Loss Aversion. ₹45 savings emphasize value.
   • Opportunity: Highlight cumulative benefits like “Save ₹135/month.”
7. Best Offer Not Auto-Applied:
8. • Phenomenon: Endowment Effect. Users value manually applying discounts.
   • Opportunity: Auto-apply the best offer with manual override.
9. Upsell Nudge (₹51 More):
10. • Phenomenon: Anchoring Effect. Targets drive AOV.
    • Opportunity: Personalize with suggestions like “Add Garlic Bread to save ₹45.”
11. Delivery Fee Slash (₹45 → Free):
12. • Phenomenon: Slash Pricing. Visual reductions enhance perceived savings.
    • Opportunity: Clarify thresholds for free delivery.
13. Final Price Slashing:
14. • 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

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.
• 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.

System 1 Design

1. Decision Flow for High-Frequency Products:
2. • 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.
3. Low AOV and High Frequency:
4. • Since food orders are low-risk and recurring, the design focuses on reducing friction with instant visual cues (scratched prices) and bundling offers.
5. Emphasis on Emotional Triggers:
6. • 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.
7. Simplified Interaction:
8. • 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.
2. Milestone Approach:

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.

Plan Benefits

Rationale

1. Three-Tier Pricing:
2. • Plans include Monthly (₹129), 3-month (₹399), and Yearly (₹999).
   • The Yearly Plan is marked as a “Bestseller”, nudging users with social proof and emphasizing long-term savings.
3. Price Anchoring:
4. • A fully customizable pizza (₹1,000) anchors perceived value, making plan prices like ₹129 feel minimal compared to the benefits (₹1,150/month).
5. Ownership and Flexibility:
6. • Users can redeem “One Plus One” offers on any day and choose their preferred mode (dine-in, delivery, takeaway).
   • Creates a sense of control and exclusivity, boosting emotional value.
7. Bundling and Surround Effect:
8. • Free delivery (~₹150/order) and priority service are bundled, making the plans feel more valuable than buying features individually.
9. Borrowing Trust:
10. • Domino’s reputation for quality and customization builds confidence, differentiating the plans from third-party aggregator services.
11. System 1 Design: Why It’s the Right Fit

This redesign is rooted in System 1 Design, which caters to fast, intuitive decision-making. Domino’s is a high-frequency, low-AOV product, meaning users make quick, repetitive purchases rather than long-term, high-stakes decisions.

1. Simplified Choices:
2. • Three plans, visually clear features, and strong savings messaging reduce cognitive load, enabling users to choose quickly.
3. Immediate Rewards:
4. • Features like "One Plus One," free delivery, and priority service provide tangible benefits, aligning with the quick gratification expected in high-frequency purchases.
5. Emotional Engagement:
6. • By appealing to biases like ownership, loss aversion, and the decoy effect, the redesign taps into users’ emotions, ensuring they feel the value outweighs the cost.

Why This Redesign Works

1. User-Centered Design: Tailored to Domino’s diverse customer base, offering flexible options for casual, regular, and loyal users.
2. Increased Conversions: Pricing psychology nudges users toward higher plans while maintaining perceived affordability.
3. Aligns with Brand Value: Emphasizes affordability, quality, and convenience—core elements of Domino’s value proposition.

This redesign creates a seamless and intuitive pricing experience, driving user satisfaction and subscription adoption while ensuring alignment with Domino’s business goals.

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:
8. • Value Seekers: Highlight savings on delivery fees.
   • Loyalists: Emphasize exclusive rewards and sides.
   • Convenience-Driven Customers: Stress time-saving benefits like priority service.
9. 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.
10. 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

Thank you for reading this! Gratitude 💫

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):
2. • 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.
3. Time Saved:
4. • Features like saved preferences, one-tap reordering, and real-time tracking streamline the ordering process, catering to busy professionals and frequent users.
5. Dopamine Hit:
6. • Loyalty rewards and milestone perks (e.g., free pizza after 6 orders) create excitement and satisfaction, enhancing user engagement.
7. Increased Convenience:
8. • 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.

Competitor Benchmarking: Key Features and Offers

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.

Mapping Perceived Value Across the User Journey

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.

The pricing for Domino’s subscription plans must balance user affordability, perceived value, and business profitability. Here’s how the pricing structure aligns with customer expectations, perceived value and structuring pricing.

The “One Plus One” Subscription Plan

What is the Plan?

The “One Plus One” Flexible Plan offers users the ability to redeem Buy One Get One Free on a customizable pizza of their choice, once every month.

• Redemption Flexibility:
• • The free pizza can be redeemed on the same day of purchase or any other day within the subscription period.
  • Users can choose their preferred mode of redemption: dine-in, takeaway, or delivery.
• Additional Perks:
• • Free Delivery for all orders.
  • Priority Service for dine-in and takeaway.
  • Member-Only Discounts on additional orders.

Pricing Structure

The plans are priced to cater to all user segments, from casual users to loyal customers:

Perceived Value Analysis

The perceived value of the plan exceeds the actual charge, ensuring users feel they gain significant benefits:

1. One Plus One Offer:
2. • The highest value pizza (customized) is priced at ₹1,000.
   • This alone justifies the cost of the monthly plan (₹129) multiple times over.
3. Free Delivery:
4. • Delivery fees (~₹150/order) are waived, adding tangible savings for every order.
5. Flexibility:
6. • Users can choose their redemption day, and mode (dine-in, takeaway, delivery), and fully customize their pizza.
7. Bonus Perks for Long-Term Plans:
8. • Annual subscribers get two extra “One Plus One” days, significantly increasing perceived value.

Rationale for Pricing

1. Affordable Entry Point (₹129/Month):
2. • Ensures casual users can test the plan with low commitment.
   • Perceived value (~₹1,150) is nearly 9x the actual cost, making it a no-brainer for users.
3. Medium-Term Engagement (₹399/3 Months):
4. • Encourages users to commit longer, offering consistent savings.
   • Perceived value (~₹3,450) is ~9x the cost, reinforcing affordability and benefits.
5. Loyalty Incentives (₹999/Year):
6. • Rewards loyal customers with bonus perks (two extra pizzas annually).
   • Perceived value (~₹14,950) is ~15x the cost, ensuring maximum satisfaction and retention.

Why This Pricing Works

1. Perceived Value Aligns with User Expectations:
2. • Customers perceive 9x-15x value relative to the price charged, ensuring satisfaction across all plans.
3. Flexibility Meets Diverse Needs:
4. • Redemption options (same day or later) and multiple modes (dine-in, takeaway, delivery) appeal to various lifestyles.
5. Tangible and Emotional Benefits:
6. • Tangible savings (free pizzas, free delivery) and emotional rewards (customization, exclusivity) increase user engagement.

This pricing model uniquely combines flexibility, customization, and affordability while maintaining high perceived value. By offering a tangible benefit (fully customized pizza) tied to a low-cost subscription, Domino’s can appeal to all user segments, from casual diners to loyal customers, ensuring widespread adoption and satisfaction.

Pricing Strategy for All Customers: Domino’s India