Coupon 2.0: Domino’s taps mobile LBS to reward consumers for real-world actions

MobileMarketer details:

Domino’s taps mobile LBS to reward consumers for rDomino’s partners with Izea for location-based mobile loyalty initiatives

Domino’s Pizza and Jones Soda Co. are among the brands using location-based mobile marketing tactics to reward consumers for their loyalty and to drive repeat purchases.

To power the initiatives, the brands tapped Izea’s WeReward, a mobile incentive platform that is intended to drive discovery of specific franchise locations and local businesses by paying cash to consumers for actions they take in the real world. Using the application, which has rolled out with rewards available at more than 15 million businesses nationwide, consumers can discover local businesses and earn rewards for their patronage.

“We can integrate into a mobile commerce applications in-app,” said Ted Murphy, founder/CEO of Izea, Orlando, FL. “We are currently working with our launch partner, Domino’s, on integrating their mobile commerce application into the WeReward app.

“This will allow a user to order a pizza online and claim their reward, all within the WeReward application,” he said.

Izea specializes in social media sponsorship, operating multiple marketplaces such as WeReward, SponsoredTweets and SocialSpark.

Domino’s Pizza exec: mobile commerce growing at asDomino’s predicts a continued surge in mobile commerce revenue

WeReward via mobile
Nearly one in four U.S. adult consumers uses mobile location services, with 63 percent of Apple iPhone owners using such a service at least once a week, according to a recent 2010 Mobile Marketing Association/Luth Research Survey.

Domino’s Pizza, one of the top pizza delivery chains nationwide, lets consumers earn rewards via the WeReward application for both delivery and carryout from nearly 5,000 U.S. stores.

The WeReward platform lets Domino’s connect with consumers in a unique way. It helps the pizza franchise create awareness for its stores when buyers are nearby, driving viral social sharing and giving people a way to interact with the Domino’s brand.

Domino’s Pizza exec: mobile commerce growing at asDomino’s Pizza Tracker on its iPhone-optimized site

For example, Domino’s ran the following Verified Task Reward via the WeReward application:

“Take a picture of your Domino’s pizza box. Make sure that we can see the receipt on the box. Mobile orders @”

The same screen has a “complete task” call-to-action and reveals the number of points users can earn by completing the task, in this case, 25.

Here is a screen grab of the WeRewards task list:

“WeReward solves two big challenges,” Mr. Murphy said. “First, it drives verified customers into their retail location on a performance basis.

“Advertisers can set their own price and budget, giving them a high level of flexibility while eliminating the risk,” he said. “You only pay for your marketing when we have driven a paying customer into your store.”

“It also provides these businesses with a tremendous amount of customer data, enabling them to learn more about their customers and connect with them in very unique ways.”

Multiplatform reach
Currently WeReward is available for iPhone and Android devices and a BlackBerry application is in the works.

WeReward integrates with Facebook, Twitter, Yelp, Google, CitySearch and Foursquare, letting consumers earn points, while simultaneously unlocking badges and sharing experiences through their social networks.

“The strategy is to provide an incentive engine that gives our users a fun, unique and profitable way of discovering new places and products,” Mr. Murphy said.

“For the advertiser, it enables them to drive new and repeat customers on a performance-basis and develop a deeper understanding and relationship with their customers,” he said.

Izea has integrated CityGrid’s data into the WeReward application.

“This gives users immediate access to check-in and earn money at over 15 million businesses throughout the country,” Mr. Murphy said.

“With Foursquare, we simply enable our users to earn rewards for a check-in on the WeReward platform and simultaneously check-in on Foursquare where they could continue to become a Mayor and unlock badges,” he said.

For advertisers, this platform is a performance-based mobile marketing option, giving local businesses and national brands the opportunity to drive measurable return on investment, per Izea.

Here is a screen grab of the rewards page:

Jonesing for mobile rewards
WeReward only charges advertisers for customers who actually make purchases at their locations, which is verified through a process using photos submitted by the consumer, GPS data and manual reviews.

Beverage maker Jones Soda Co., for example, rewards users for taking mobile pictures with its soda bottles using the application.

Jones views the pictures and thanks consumers for their purchases through a personalized message.

User submitted photos have always been an integral part of Jones Soda bottles. WeReward provides the brand with a new way of reaching its consumers through their mobile phones.

The cost-per-action alternative lets the brand create engagement with the Jones Soda drinker regardless of location in a cost-effective manner, according to Izea.

Advertisers control their WeReward budget and can adjust their campaign spending at any time.

There are no set-up fees or minimum commitments, the advertiser decides how many customers they would like to reach each month and what they are willing to pay per customer.

The primary target demographic that WeReward reaches is U.S. consumers ages 21-45, both male and female.

Currently, WeReward does not have mobile coupons within the application.

However, advertisers can offer points to users coming into their business and making a purchase.

“We believe that this can be more compelling than coupons,” Mr. Murphy said. “Additionally, coupons or discounts can limit revenue sharing opportunities, especially with our referral program.”

Izea has invested in some paid media to get the word out about WeReward, but the company primarily relies on its clients and WeReward users to spread the word.

“With over 400,000 publishers in our total social media sponsorship network, we have the ability to grow the user base organically within our network,” Mr. Murphy said.

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