Why does Domino's send extra "Oregano packets"? 🍕
Welcome to the 114th edition of the GrowthX Newsletter. Every Tuesday & Thursday I write a piece on startups & business growth. Today’s piece is going to 94,400+ operators & leaders from startups like Google, Stripe, Swiggy, Razorpay, CRED & more
Let’s begin.
We all open our refrigerator's 10s of times in a day 🥲
First thing I see - Domino's "Oregano packets" 🍕
This is the story of the "Extra" packets ⬇️
Quick context 🗓
Domino's started out as 30 min or free pizza delivery back in 1960. Fast forward 60 years, Domino's owns 70% of the Pizza delivery market in India. Experts estimate that the lifetime value of a loyal Domino's Pizza customer is $4,000. That's crazy.
So how did Domino's get here? 🤯
Domino's relies on a simple strategy based on "Triggers".
1/ It creates a marketing hook 🪝
Delivery in 30 mins or free. This allows a potential customer to place an order (with a slight hope that they might get it for free).
2/ It creates the right experience 💙
From how the Pizza toppings are packed & it all stays together till it reaches your dinner table.
3/ It solves for standardisation 🔁
Eat from any freaking Domino's franchise store and you will always get the exact same taste for every type of Pizza. This creates a pattern of taste recognition in the customer's mind. Similar to how Coke/ Pepsi would do.
4/ It leaves it's mark 🎯
With every home delivery of Pizza, Domino's sends these "Extra" chilli flakes & Oregano packets. And most customers store them in their refrigerator for future use.
This is where it gets interesting ✨
Every time you open the refrigerator, you see the Oregano packets that reminds you of Domino's pizza and it's consistent experience.
Voila! you start associating fridge open <> Pizza ! 🍕
The job is done, ask your friends - how many of them placed another Pizza order just to finish off these Oregano packets & how many used these packets to use in home made Maggie, LOL!
But, why am I talking about Oreganos today? 🤔
Domino's wanted to solve for repeat purchase behaviour - without spending bonker money on marketing. All they did was plant a trigger of these extra packets so customer is reminded of next purchase subconsciously hundreds of times before the actual purchase.
Think about Oregano(s) that you can plant in your product’s purchase experience. How every purchase plants a reminder trigger for the next one & you will build a large repeat purchase business? That's all I want you to take away from this story.
Missed last few stories?
Jan 5th : How did Marlboro & Redbull build habits?🚬
Jan 2nd : How can Air India beat Indigo in 2023? ✈️
Dec 26th : How did Tupperware get to $2 billion in annual revenue? 💸
Dec 21st :YouTube "Paid courses" aim for $1 billion revenue 🤯
Over 100+ stories here.
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