Digital rewards are driving higher frequency and spend among digital customers
A small number of quick-service restaurants offered digital loyalty schemes before the pandemic, such as Starbucks and Chipotle, but the pandemic has spurred many more to do so.
McDonald’s is the latest to bet on digital loyalty, with the fast food chain now piloting its MyMcDonald’s Rewards program in the UK. It has launched in 10 restaurants in England, with plans to add 65 before the end of January, and roll out nationwide by the end of this year. Customers can access the scheme via the MyMcDonalds app, and earn points which can eventually be redeemed for menu items.
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Chris Kempczinski, President and CEO, explained in McDonald’s Q3 2021 earnings call how the scheme has already generated success for the fast food chain. “It also creates another touch point to increase engagement and take our relationship with customers to more responsive, more personalised places,” he said. “We’re already seeing increased customer satisfaction and higher frequency among digital customers, compared to non-digital.” According to McDonald’s, the scheme – which is already active in the US, Canada, and Germany – already has more than than 21 million enrolled customers.
Chipotle is another restaurant that has seen huge success from its digital loyalty program, which CEO Brian Niccol says now has more than 23 million members, and is “consistently able to generate more transactions from light, medium and high frequency users.” Chipotle also says that its digital loyalty members represent around 25% of its total customer base, making it a big driver for overall sales.