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Being rewarded for ‘good behaviour’

Domino’s Pizza is set to be one of the first brands to use behavioural economics in its marketing approach.  Basically, this fast food brand is integrating customer behaviours into their marketing activity to work out what are the best incentives to offer to each, at key times of the day/week/year.  A regular pizza doyenne for instance might prefer a moneyback option to a 241 offer for instance, or for a family of four it’s likely to be vice versa (I’m assuming, as I’ve not got access to their customer data, just my own rough view on possibilities).

Although this all can sound a little bit big brother, this is a major change in the way brands are thinking about the way they market themselves.  Until now, the methods of communicating with customers may have become far more refined but the theory and customer demographics analysis behind their communications has been the same for the past 30 years or so.  It is in serious need of a makeover.

Personally, I love the fact that it’s a pizza company that is making this leap.  After all, pizza is surely the ultimate way to express your own individuality.  Think about your own personal pizza choices, and consider, are you a regular pepperoni hot or do you come with anchovies and banana?

For more info:

nef, the independent think tank, wrote about behavioural economics back in 2005.  They feel there are principles behind behavioural economics, which are (in my words) that:

1) people copy others
2) habit is hard to break
3) we’re programmed to ‘do the right thing’
4) our values dictate how we act
5) possession is 9/10ths of the law!
6) emotional can often outweigh the rational in making decisions
7) people only change if they’ve active in the process

To read more on nef’s work click here.

To read more on Domino’s approach, click here to read the article in Marketing magazine.

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