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Domino's Ends Free Pizza Promo With T-Mobile Due To High Demand (techcrunch.com) 56

An anonymous reader writes: In addition to giving customers stock in the company, T-Mobile announced last week at its "un-carrier" event that it would be offering freebies every Tuesday through its new app, such as Domino's pizza and Fandango movie tickets. One week has passed since then and Domino's is now backing out of the free pizza promotion due to higher-than-expected demand. T-Mobile CEO John Legere posted an internal memo from the company that read, "After reviewing yesterday's results and taking your feedback into account, the decision has been made not to continue the T-Mobile Tuesdays promotion unless we can find a solution that is best for the brand." Customers of T-Mobile were upset to find that Domino's was limiting the number of free pizzas per store due to promotion limits. Some stores simply stopped accepting the coupons. What may have led to the extremely high demand was the fact that under the deal's terms, T-Mobile customers on a single family plan could all use their own codes to place large orders of multiple pizzas. That is to say, each line warranted a free pizza.
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Domino's Ends Free Pizza Promo With T-Mobile Due To High Demand

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  • Not surprising (Score:5, Insightful)

    by zelbinion ( 442226 ) on Friday June 17, 2016 @06:00PM (#52340325)

    Okay, so let's do the math.... T-Mobile has something like 63 million subscribers. Every Tuesday EVERY SINGLE ONE OF THEM could get a free pizza at Domino's. Even if one half of one percent of the people eligible actually took advantage of the deal, that's still 315,000 free pizzas per week. Domino's only has around 5000 stores in the U.S., so that works out to 63 free pizzas per store, every Tuesday. Since I'm sure the number of free pizzas would not be evenly distributed, There were probably some Domino's locations that did nothing but give out free pizza's all day. How anyone thought that was sustainable I don't know...

    • Apparently it doesn't have to be sustainable. They got the word out, the promotion worked, and now nobody has to give away any more pizzas.
      • by Anonymous Coward

        Yes, but now I associate Dominos with broken promises, and will never eat there again. It did not work.

        • This. I had not eaten Dominos pizza in years... probably since college. But for free, I figured I'd given them a shot. They must have changed their recipes at some point, because it was much better than I'd remembered. It was on par with the local pizza shop I usually goto, and certainly adequate for a quick lunch or on a tipsy night. They came close to winning me as a customer, and not just on Tuesdays.

          It was not, however, so good that they get a pass for reneging on the deal. I won't go so far as to

          • That's still nothing lost for Domino's. You didn't eat their food _before_ the deal, and now you still won't eat their food. They lose nothing from irritating people who already had no intentions of being their customer.
      • Actually Dominos not only handed out free pizzas but also got in return bad publicity as someone who doesn't fulfill made promises. Great deal, really. Please don't apply for that PR job we've posted, thank you.

        • Re:Not surprising (Score:4, Interesting)

          by amRadioHed ( 463061 ) on Friday June 17, 2016 @07:06PM (#52340651)

          Actually a limitation of free pizzas for the first 100 customers per store was specified in the promotion's fine print. Of course fine print can't protect them from the anger of customers who didn't bother to read it.

          • That's really not a good way to handle it though. It shouldn't issue the coupon code, only for it not to work for a customer, at all. Rather, a "spin the wheel to win a free pizza" system or similar would control the numbers of free pizzas being issued, whilst still maintaining customer goodwill and not exposing Dominos to the perception of having broken their promises. T-Mobile does, after all, not only know where you live, but where you ARE. (Even if you disable location services or deny access to the

            • Yeah, the implementation was certainly poor. I think something as simple as limiting the offer to one per customer could have helped a lot. It was one per line, so there were some customers getting as many as 7 pizzas for just their family.

            • by tlhIngan ( 30335 )

              That's really not a good way to handle it though. It shouldn't issue the coupon code, only for it not to work for a customer, at all. Rather, a "spin the wheel to win a free pizza" system or similar would control the numbers of free pizzas being issued, whilst still maintaining customer goodwill and not exposing Dominos to the perception of having broken their promises. T-Mobile does, after all, not only know where you live, but where you ARE. (Even if you disable location services or deny access to the TMO

            • "T-Mobile does, after all, not only know where you live, but where you ARE. (Even if you disable location services or deny access to the TMO app, they can still place you with a couple hundred meters via cell tower triangulation.)"

              Even though the T-mobile organization as a whole may have this information, I would expect that it is not so easy to transfer this information in real time from where it is normally kept to the marketing department that is in charge of these promotions. The reasons would be techni

          • by Zaphon ( 13837 )

            Actually a limitation of free pizzas for the first 100 customers per store was specified in the promotion's fine print. Of course fine print can't protect them from the anger of customers who didn't bother to read it.

            Yeah, I know it's there now, but when I looked the first week I didn't see it. I think it was added after the fall out started to happen. And from what I understand, the biggest problem is T-Mobile issued the codes to everyone (I have 4 lines, I got 4 codes each week) and then it was up to Domino's to actually limit the orders. However, when you went to order online at Dominos and use the code, instead of getting a message saying something like "This stores 100 free pizzas have already been claimed, plea

      • Apparently it doesn't have to be sustainable. They got the word out, the promotion worked, and now nobody has to give away any more pizzas.

        Exactly.

        Earlier: "Hey kids, want some free stuff? Sign here!"

        Now: Hey kids, remember that free stuff we promised you? Well, you're not going to get it, ha ha ha!"

    • There were probably some Domino's locations that did nothing but give out free pizza's all day. How anyone thought that was sustainable I don't know...

      Free to the T-Mobile subscriber does not necessarily mean Domino's does not get paid for the pizza. It isn't clear whether or not T-Mobile was paying Domino's for each and every pizza.

      • So I can say that when I picked up my "free to me" pizza, the guy printed out the receipt and asked how people were paying with cash using online purchase. I found it interesting that it didn't show up as a coupon or something, but paid in cash. The manager was holding all of these odd receipts off to the side and there were 6-10 at that point. Neither the manager nor anybody on his staff was aware of the T-Mobile promotion when I told them. This suggests there was a lack of planning at level(s) to have

    • Another bit of arithmetic. T-Mobile charges about $50 per line, depending on how many lines you have. Every Tuesday, each line gets about $15 of free stuff. That's $60 in free stuff, $50 in revenue. Plus the costs of providing the phone service ...

    • Even higher than that even.

      As the article points out, the freebie elegability was PER LINE, not Per Subscriber. Most subscribers are not single people with only a single line: This means that 63million figure works out to over 120million, if we consider that most people with multiple lines will have more than two, and tha they will make up the bulk of the population of subscribers. (we give it at nod at averaging out to about 2 lines per subscriber.)

      You can easily multiply that finding by at least 2.

  • Did no one at Domino's ever hear of the Oprah/KFC fiasco?

  • by Anonymous Coward

    I stopped eating pizza and bread about five years ago.
    Suddenly I could lose weight.
    Best thing for your diet.

    • and with much the same results. Whatever keeps you away from large quantities of junk food. For me it was fast food cheeseburgers. No meat means no fast food cheeseburgers (plus the attendant fries and soda pop). The weight came right off after that. That's why Atkins works. You stop eating cake for breakfast :P.
  • Now that we've signed you up for a cellphone plan by promising you stuff, we're discontinuing the thing that made you sign up. Why? Because fuck you! ha ha ha!

  • People are desperate to the point of eating this shit.
  • Well, I got my Free Pizza.. Who would turn that down unless on a diet. Everyone loves free food.
  • by mentil ( 1748130 ) on Friday June 17, 2016 @11:31PM (#52341685)

    This reminds me of Groupon. Seems people stopped offering free stuff through Groupon (due to incidents like this one), and I never heard of them again.

    • The idea of Groupon was slightly different in that it was an advertisement service to get people into the store for the first time. That is why it was mainly used by small unknown stores rather than large well known brands. The only problem is the idea that a consumer getting something really cheap would be converted to an increase in sales didn't eventuate since it turns out the consumers were only chasing a bargain. Combine that with groupon's advice that completely screwed the stores by not setting sensi

  • by allo ( 1728082 ) on Saturday June 18, 2016 @07:46AM (#52342615)

    to free pizza?

  • SCHNIFTER: Das ist immer alles Aulung und ist rauch mit and potzen Volkswagen und niemann stint und "Swell Pizza!!"

    --
    BMO

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