MyMcDonald’s Rewards is already one of the largest programs in the industry as the company moves to learn more about its customers. It’s amazing how quickly the world’s largest restaurant company is getting so many people to sign up under its digital umbrella. McDonald’s long-awaited loyalty program, MyMcDonald’s Rewards, has already become one of the most popular loyalty programs in the industry, just months after its July 2021 debut.
According to an October publication of the same year by Restaurant Business magazine, the company said the program has 21 million total members, 15 million of whom are considered “active.” It’s a quick debut, making it one of the biggest shows in the industry. While it has a ways to go before it can match chains like Chipotle, Domino’s, and Starbucks that have older loyalty efforts (1), the ubiquity of McDonald’s and the frequency with which customers use the chain could quickly narrow the gap, the publication cites. MyMcDonald’s Rewards is already part of two years of same store growth. McDonald’s is already seeing higher customer satisfaction and frequency among digital customers compared to non-digital ones.
The operation of the program is very simple and offers an attractive value proposition. Earning reward points is very easy, you just have to download the restaurant app. At the time of purchase, the 4-digit code is presented before ordering or points can still be earned when ordering through the app. For every dollar spent you earn 100 points. Redemptions start at 1,500 points. Points are valid for 6 months, a clear sign of one of the restaurant’s big bets with this program: generating purchase frequency.
With nearly 14,000 restaurants in the US, it’s not like the company needs people to know about the brand’s existence. According to data from the same company, 80% of the population visits a chain restaurant at least once a year. So the loyalty strategy is not focused behind the reach of new customers, it seeks to increase the frequency. However, the biggest long-term potential in the strategy lies in collecting the data these customers provide to McDonald’s, which is the main reason why registration is being pushed. The restaurant’s goal is to have knowledge of at least 40% of who its customers are, a goal that still seems distant since at the moment they have 5%.
- Some of the largest restaurant programs in the USA:
*Active clients. Post made by Restaurant Business
For Mcdonald’s, the loyalty strategy is the most powerful vehicle to generate the digitization of its customers. The program has exceeded expectations in downloads and participation. However, the digital strategy is complemented with orders through the app, delivery and payments. The strategy appears to be paying off with consumer acceptance:
The formula of having a loyalty program aligned with the objectives of the organization is very winning. The main focus must be the client, where the value proposition is based on their preferences and tastes, added to excellent execution, simplicity and transparency.