Rising web sales drive Dominos into SMS

Dominos Pizza's e-commerce sales have risen by 42.1% to £13.6m in the first half of 2007 and the company plans to use SMS technology to increase sales further.

Dominos Pizza's e-commerce sales have risen by 42.1% to £13.6m in the first half of 2007 and the company plans to use SMS technology to increase sales further.

The company has finished rolling out an SMS ordering system which allows orders to be placed by text to all of its 470 stores across the UK. Some 2,000 users have signed up to the service since it went live at the end of July.

"The increasing penetration of broadband in the UK and cultural shift in using mobile phones for more than just calls has helped shaped our sales strategy to use IT in this way," said Jane Kimberlin, IT director at Dominos Pizza.

Kimberlin said that 500,000 users on average order through the internet and that a third of those were new customers. The remainder were existing customers, but who had moved off telephone ordering, in favour of speedier ordering via the internet.

A report conducted on behalf of Dominos by the Future Foundation predicted one in three home delivered pizzas will be ordered via e-commerce channels and sales will grow from an estimated £13m in 2005 to £374m in 2015.

The SMS technology took six months to deploy and involved integrating its existing internet ordering system with SMS software from Altaine software, which has carried out similar work for Subway sandwiches, and Data Cache, which handles billing. Kimberlin said that having a single ordering IT system in Dominos helped connect new services and ways of ordering to it. Marks and Spencer has also had a similar aprroach to extending its sales channels.

Dominos also pioneered sales through interactive TV, but cooling sales have seen IT withdraw from the Sky platform, although it stills runs the service on Virgin Media.

Kimberlin said that the group would also be exploring the use of Second Life as an additional sales channel.



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