Other fast-food retailers do it. And in other countries, McDonald’s does it too. But for the first time in the United States, the hamburger chain is starting to roll out a loyalty program that rewards consumers for their frequent purchases. Although it has been implemented in only about 900 stores thus far, and only in select geographical regions, the elements of the program are starting to become clear.
Called MyMcDonald’sRewards, it offers a relatively conventional exchange of 100 points for every dollar that members spend. The redemption process reportedly will feature four tiers, such that once loyalty program members reach 1,500 points, they can get an order of fries for free, or they can keep building to the highest, 6,000-point tier and redeem that for a full meal.
To earn the points, members must log in to their accounts to place the order, which creates new personalization opportunities too. If they place an order through the mobile app, then pull through the drive-through lane a few minutes later, customers are likely to be greeted by name. Special offers will reflect their purchase history as well, designed to encourage them to order more or try new menu options.
In addition to customers, McDonald’s is opening the loyalty program to employees, such that hourly workers can earn points by completing training modules, especially those related to the company’s new technology options. With this approach, it hopes to make the employees more loyal too, by recognizing their efforts to support the company’s introductions of new concepts and ordering channels (e.g., digital menu boards).
Discussion Question:
- In what ways is McDonald’s loyalty program the same or different from others?
- Are the loyalty program offerings enough to convince customers to visit McDonald’s rather than a competitor?
Source: Amelia Lucas, “McDonald’s Enters New Phase of Testing a U.S. Loyalty Program Ahead of Nationwide Launch,” CNBC, February 3, 2021