Domino’s Mexico decreases CPA by 65% with Segment and Snowflake

With Segment and Snowflake at the heart of Alsea’s digital transformation, Domino’s Mexico was able to create complex and hyper personalized audiences to increase ROAS, revenue and incremental orders across all paid and owned ecommerce channels.

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“Having Segment not only helped us do the personalization work we’ve always wanted to do, but we can now improve on the effectiveness of our ad campaigns and create a better feedback loop.”

— Christian Rocha Castillo, Deputy Director Ecommerce/Digital Media, Domino’s Pizza

Founded in 1960, Domino's Pizza is the largest pizza company in the world based on retail sales. It ranks among the world's top restaurant brands with a global enterprise of more than 17,200 stores in over 90 markets. With an emphasis on technology innovation, Domino's has been able to achieve more than half of all global retail sales in 2019 from digital channels. 

In Mexico, the brand’s customer interactions span dozens of digital touch points across every aspect of the business. The number of applications that Domino’s has added to service all of these channels has similarly increased. As a result, the customer data was chaos. Instead of being accessible across every team, data was stuck in silos with different teams having different information. 

Segment and Snowflake became the heart of Domino’s digital transformation, helping to build a more efficient and reliable marketing engine.

Scaling customer data without a single source of truth

Domino’s Pizza is the largest, most successful and innovative chain of fast delivery restaurants in Mexico and to reach the standard of service necessary to achieve this, they have maintained a strict policy around efficiency and reliability. In Mexico, Domino’s currently has more than 718 stores, of which 433 are corporate and 275 are franchises, through which it serves more than 550,000 families a week, with the support of nearly 10,000 employees. 

Customer interactions span dozens of digital touch points across every aspect of the business. And with more focus on digital, the number of applications Domino’s invested in to service all of these channels had increased. As a result, the customer data was all over the place. Instead of being accessible across every team, data was stuck in silos with different teams having different information. Data silos prevented collaboration around the customer experience, and the marketing team was unable to personalize campaigns based on consumer behavior. This led to low return on ad spend (ROAS) due to generic / poorly targeted messaging.  

Additionally, Alsea, Domino’s parent company in Mexico, was relaunching its loyalty program and needed a single view of the customer in order to personalize coupons and email messaging across its brands. At the time, every brand under the Alsea umbrella had a separate stack and set of data. 

In order to keep up with growth, an expanding digital footprint, and an increasingly online customer, Domino’s needed to turn its focus to online delivery and build more engagement across its digital platforms. 

Building a customer data infrastructure that quickly scales across all customer touch points

For Domino’s to be successful in bolstering its marketing and engineering efforts in the online world, the brand needed a strong, coherent data set around its consumers, their preferences, and buying habits. 

First, Alsea created a data lake in Snowflake, powered by Segment’s Customer Data Platform, to collect and consolidate all of its customer data across 16 brands including Domino’s. By partnering with Segment, Alsea significantly simplified its data collection process across all its digital properties with a single API. This enabled Alsea to break down data silos using a data pipeline that scales across all customer touch points. 

Once Alsea had control over where data was flowing to downstream tools and ensuring the right data was going to the right destinations, Domino’s could take advantage of Segment for more relevant cross-sell/upsell campaigns via personalized offers. Dominos had specific marketing goals: 

  1. Increase total number of online orders via Domino's website or mobile apps. 

  2. Increase the total revenue brought by Domino’s online team

  3. Increase the ROAS based on their Marketing Digital investments. 

  4. New Data Analysts that needs a consistent and robust Database (DW)

  5. Create better audiences and segments to improve personalization and increase the advertising spent 

Using Segment Personas audiences to fuel more effective Facebook and Google ad campaigns

Domino’s had launched a series of Facebook and Google ads campaigns to influence customer conversion and retention. To make these campaigns as effective as possible, Domino’s built audiences using Segment Personas SQL traits using a recency, frequency and monetary value (RFM) model. Domino’s then sent these audiences to its ad-tech partners with Segment to target the right customers at the right time with the right messaging. 

With Segment, Dominos was able to identify 8 cohorts of customers and create personalized customer journeys for each based on behaviors. Domino’s now has visibility into which groups of customers are going to buy pizza every 60 days, 90 days, etc with this model, which makes ad campaigns through Facebook and Google that much more effective. 

Single view of the customer and better visibility of ad campaign effectiveness

Now that Alsea is set up with a data lake from Snowflake and Segment Customer Data Platform, they now have a single view of the customer across all the different business units including Domino’s. Additionally, Snowflake has enabled Alsea to build a data science team and initiatives to understand the customer profile across brands. 

Domino’s is now building complex/ hyper relevant audiences using Segment SQL traits informing all its ad campaigns to be more effective and drive more revenue through its online and app business. 

Segment Overall Results

  • Single view of the customer across different brands and teams

  • Better visibility of ad campaigns effectiveness

  • Overall increase in ROAS

  • 65% decrease in CPA (cost per acquisition)

Facebook campaign results

  • 23% incremental increase on conversions for customer acquisition

  • 16% incremental increase on conversions for customer retention

Google campaign results

  • 700% increase in ROAS

  • 65% decrease in CAC month on month

Industry: Retail
Location: Mexico City