Restaurant rewards are increasingly becoming the norm for quick-service restaurants (QSRs). In the past month alone, Focus Brands-owned bakery giant Cinnabon launched its Cinnabon Rewards program, California-based Mexican-style QSR Del Taco launched its Del Yeah! rewards app, and McDonald’s expanded its MyMcDonald’s Rewards program to Germany. As loyalty programs’ omnichannel reach continues to grow, some brands are finding new ways to build digital loyalty to stand out from the pack.
For instance, Taco Bell is driving frequent digital spending with its first-of-its-kind subscription program, the Taco Lover’s Pass, which enables subscribers to receive one taco per day through the chain’s app. The program has the potential to drive daily engagement, embedding the brand more deeply in consumers’ lives.
“Our fans and team members have been the guiding force behind the decisions we’ve made, especially in the last year, which has played a significant role in Taco Bell’s digital volume growth,” Zipporah Allen, the company’s chief digital officer, told PYMNTS in an interview for the October edition of the Subscription Commerce Tracker®. “We’ve really focused on how our digital advancements can help better the customer and team member experience. We know our fans are eager for convenience and reliability, two aspects we will continue to deliver on within our digital platforms.”
See also: Report: Taco Bell Serves up a Subscription Service to Keep Customers Loyal
Chipotle, meanwhile, has been taking an approach to building loyalty that decenters the financial aspect in favor of rewarding engagement for engagement’s sake. Last month, the restaurant added achievement badges into its loyalty program, recognizing users for their engagement with the brand, as part of the chain’s Extras platform, which features a range of gamified rewards.
“I [have been surprised by] the excitement level for Extras, even when there's no monetary value to them. Sometimes just simply being rewarded for doing Chipotle the way you Chipotle is enough for our customers, and they get excited about that,” Nicole West, vice president of digital strategy and product at fast-casual chain Chipotle Mexican Grill, told PYMNTS in an interview.
More details: Chipotle: Brands Can Drive Loyalty Without Bearing the Cost of Freebies or Discounts
Digital loyalty rewards can be key to driving sales at a time when consumers remain hesitant about returning to physical restaurants. PYMNTS’ report “The Post-Pandemic Consumer at 18 Months: Spending Now, Worrying Later” found that about half of all consumers are still “very” or “extremely” worried about the health concerns related to the pandemic. In fact, only about a quarter of all United States consumers plan to eat out at restaurants within the next three months.
Read more: Only 27% of US Consumers Plan to Dine Out Between Now and the End of 2021
While creative approaches to loyalty can be an effective way to stand out, restaurants can also utilize more traditional rewards — deals and free foods and beverages — to draw consumers into their mobile ordering apps. These offers can incentivize off-premise purchases, especially when restaurants use data to personalize their rewards to each customer.
The July/August edition of PYMNTS’ Delivering on Restaurant Rewards report, created in collaboration with Paytronix, which surveyed over 2,000 U.S. consumers about their loyalty habits, found that 81% of QSRs’ customers want to be afforded the opportunity to earn free food, and that 72% want access to customized coupons or discounts. By giving consumers offers that they actually want, restaurants can build those relationships that maintain loyalty, even in the face of difficult circumstances.
Read more: Two-Thirds of Consumers Find Restaurant Rewards Impersonal
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October 14, 2021 at 05:18AM
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Getting Creative With Digital Loyalty Keeps QSRs’ Health-Concerned Customers Engaged - pymnts.com
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