Hello Readers, we'll be shutting down this session on ROI (Return of Investment). ROI can be describes as the earning power of assets measured as the ratio of net income to the average capital employed in a company or project.
The company i will be using as a case example is Domino's pizza
Domino's pizza is a restaurant that offers different styles of pizza, found in Michigan in, 1960. Besides pizza, it also offers side dishes like salad, pasta, breadsticks, garlic bread, etc. It is noted in 2012 that more than 5,000 Pizza Hut restaurants were located in 94 different countries and territories.
Being such a large company, Domino's Pizza surely wants to increase their sales. In achieving this, the main tool of marketing is social media. Domino's Pizza has been starting to use social media (making a website) since 2007.
Getting back to ROI.
Domino's Pizza launched an app for iPhone, iPad, Android, and Windows that allows customers to customize the pizza on their own and order directly from the app.According to Mobile Commerce Daily , Pizza Hut achieved over $1 Million of sales within first three months since the launching of the app. 50% of overall orders came from the app.
The gains from investment is divided into two, which are
tangible and intangible.
The tangible gain from Domino's Pizza's app is obviously the profits
they get in form of money while the intangible gain that Domino's Pizza got can be from the brand
awareness.
As for the bases of ROI, this scenario suits more to
"Increased Connections between need and Knowledge".
It affects the decision making process of the
customers compared to ordering directly at the restaurant, using the app can
give more time to customers to select which foods to order.
It also stimulates innovation by making their own pizza,
customers will have a fun experience.
I really like the ROI on Domino's pizza because it is hard to actually quantify enterprise 2.0, with this example as you said $1 million sales since launching the app, 50% of orders came from the app, ROI $500000 - cost of making the app etc. nice and simple. But would an app constitute enterprise 2.0 technology? I tend to lean towards yes it does.
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