Domino’s Pizza claims that its mobile program via Foursquare has contributed to a 28.6 percent increase to the pizza chain’s online profit across Britain.

In its earnings release Domino’s said it has been increasing its online activity to grow this sector of its customer base. The company attributed the 28.6 percent growth of its online sales, which now total 17.5 million Euros, to its Facebook site that boasts more than 36,000 fans, affiliate marketing and the FourSquare program. 

“All of these Web-based activities offer a dual benefit of driving pizza sales online and building customer loyalty with this section of the community,” the company said in its earnings release. “We are delighted to see the results of this activity with online sales rising to 32.7 percent of all UK-delivered orders.”

Domino’s first rolled out the Foursquare social media promotion in May, asking consumers to check-in when they walked in to any of the 627 locations across Britain.

Loyal consumers that check-in are offered location-based deals.

Foursquare is all about letting friends know you are. Consumers that collect points and badges based on their usage.

Eventually, these points and badges turn into coupons and the service has proven to work for marketers and brands that want to award promotional deals to frequent loyal customers.

“Domino’s is one of the only things you can order anywhere – and we need to be at the forefront of our customers’ minds at the point they realize they are hungry,” said Georgina Wald, corporate communications manager at Domino’s, London.

“To that end, we need to make sure that everywhere they look – on TV, in the paper, on the Web, on their phone – we are there, and location-based services and mobile marketing helps this.

“In addition, pizza is a low-involvement purchase – there’s not much you can order by phone/online and have the finished product in your hand within 30 minutes,” she said.

Consumers that visit retail Domino’s locations most frequently are named mayors.

The mayor of each store, every Wednesday, gets a free small pizza. This free offer, rather than a discount, drives more check-ins, per Domino’s.

Additionally, Domino’s has an iPhone-friendly site and is in the process of developing a full iPhone application for Britain. The company also plans to roll out an Android version.

“We like to lead the way with new media initiatives and Foursquare is a low-cost option, that it seems ridiculous not to do,” Ms. Wald said. “In fairness, [we are targeting] anyone who’s on Foursquare.

“But we believe it’s a great fit with our existing customer base,” she said.

Dan Butcher contributed reporting to this story.

Final Take