Domino’s Pizza ran a national promotion with Groupon on 4/20 that offered a large pizza with up to 10 toppings for $8 – much to the delight of one particular behavioral segment. This deal didn’t generate the same magnitude of buzz as other national group deals. In fact, when you look at the daily percentage of online U.S. consumers who visited Groupon.com and Livingsocial.com (i.e. daily reach), you see that in terms of site visitation this Domino’s deal didn’t even register much of a blip at all, especially when compared to Living Social’s Amazon voucher from January.
On the surface, the Domino’s deal doesn’t seem so impressive. It had less hype and didn’t lead to a spike in overall site traffic. However, if you dig a little deeper into the funnel, you see that this deal actually had a huge impact in terms of purchases. The daily conversion rate on Groupon.com more than doubled from the site average of 3.9% in April to 8.5% on the 20th.
The fine print states that orders must be placed online and are good for carryout only. Also, a general Groupon rule is that a voucher typically can’t be used until the day after purchase. Looking at the daily reach of unique visitors to Dominos.com, we initially see an isolated spike on Apr. 20 (when people would not have been able to use the voucher), but no meaningful lift has followed yet. The voucher expires on May 19, so it will be interesting to see if there is a late rush to redeem it in the next couple weeks.
This deal may not have gotten that much media coverage, but it appealed to a broad range of consumers. While one may be tempted to chuckle about the ten-topping limit or hee-haw over the date it was offered, the fact that it essentially doubled voucher purchasing on Groupon is no joke. Given the specific ordering restrictions and relatively brief redemption window, it has yet to be seen how many of these vouchers will end up being unused. At the very least, this promotion demonstrates that an appropriately targeted group deal can have a massive national reach.