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Tip Screens: Domino’s Does A Tipping Turnabout

They say turnabout is fair play. That’s certainly true in the case of Domino’s Pizza’s new ‘You Tip, We Tip’ promotion. The pizza giant is offering customers who order via their app a perk when they tip their delivery driver…

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A reverse tip…

It’s a creative rejoinder to the recent epidemic of tipping screens on mobile ordering apps, in-store kiosks and even at the cash register.

Rather than demanding or shaming the customer to to leave a tip (sometimes in situations where none is customarily warranted), Domino’s program tips you back when you tip the delivery driver.

Tip the driver $3 or more when you negotiate the pay screen(s) during any digital order from Domino’s, and you get a digital coupon good for $3 on your next Domino’s order.

The catch…

The only stipulation attached is that you redeem the coupon within the next 7 days. Which means you have to order from Domino’s again within the next week or lose the $3.

And that’s the key to a truly creative – and insidious – marketing ploy. They’re not forcing you to order from them again soon. They’re actually using your own human nature against you! How enticing is the pro0spect of saving $3 on your next Domino’s order?

But the ‘deal’ is a two-edged sword… You have to spend $3 to get $3. So the customer comes out even in the end. It’s not really $3 off your next order. And Domino’s, in effect, is paying you $3 to order again – soon.

What about the drivers?

Where’s the delivery driver in all this? First of all, the driver is Domino’s own delivery driver. They don’t use third-party delivery services for orders placed directly with them. So they’re encouraging you to tip their drivers, as well as generating repeat business.

That’s great for the drivers. I’m sure Domino’s wants to keep them happy. And maybe getting more $3-or-greater tips will ease the drivers’ abiding anxiety over low wages. Another win for Domino’s…

My take

I don’t know how much that $3 coupon offer is impacting Domino’s profits. I don’t know how large a profit margin their business model predicts. But I do know that they can’t go on forever ‘buying’ your business at a cost of $3 an order.

I think it’s both creative and insidious that the chain is veiling its new business-generating ploy behind a celebration and appreciation of their drivers. And, as I hinted above, it’s putting the ball in your court. Remember: It’s still your decision, whether or not to tip. And if so, how much…

~ Maggie J.