If 2021 taught the restaurant industry anything about rewards programs, it is that contrary to prevailing ideas about digital innovation, slow and steady may in fact win the race. That is, it is more important to provide consumers with a well-built, compelling program personalized to their needs than to rush out a product as soon as possible.
Take, for instance, the case of the world’s leading quick service restaurant (QSR) brand McDonald’s, which appeared to lag behind its competitors when it comes to loyalty, not rolling out its MyMcDonald’s Rewards program nationwide until this past July. However, in just five months, the program has already attracted a massive user base, reaching more than 21 million members as of earlier this month, per a company announcement.
For reference, as of late October, Starbucks had 24.8 million 90-day active members for its rewards program, which is widely considered a leader in the space, and which has been available via mobile app for over a decade. While McDonald’s has not reported what percentage of its first 21 million members are active users, it is clear that the chain is quickly becoming a top player in mobile loyalty.
This strength comes in large part from the preparations that McDonald’s made in advance of the launch, investing in artificial intelligence (AI)-powered personalization platform operator Dynamic Yield back in 2019. (Now, with the program launched, McDonald’s has sold the company to Mastercard.)
“If you look back, they’ve been preparing the groundwork for this,” Paytronix CEO and Co-founder Andrew Robbins told Karen Webster in an interview at the time of the launch. “I think now they’re saying we’re ready to open the floodgates and get lots and lots of people to sign up for the digital experiences, and they need a lure. There’s a reason that you’ll download and share information and that’s a loyalty program.”
Related news: Paytronix CEO: McDonald’s Rewards Program May Not Be The Latecomer It Seems to Be
Looking ahead toward 2022, it will be more important for restaurants to provide consumers with an experience that appeals to their individual preferences than it will to get in the game early. After all, consumers will no longer settle for digital availability — they expect digital excellence.
In fact, two-thirds of restaurant customers consider the availability of customized coupons or discounts when deciding whether to sign up for loyalty programs, and that share jumps up to 72% for QSRs’ programs, according to data from the August 2021 edition of PYMNTS’ Delivering On Restaurant Rewards report, created in collaboration with Paytronix. As such, by leveraging data to better personalize their offers to the individual user, restaurants can meet the demands of the vast majority of their customers.
Read more: Two-Thirds Of Consumers Find Restaurant Rewards Impersonal
Take it from fast-casual chain Chipotle Mexican Grill, which operates one of the top 10 loyalty programs on the market, according to data from PYMNTS’ latest ranking.
See the full ranking: Provider Ranking of Mobile Order-Ahead Apps
As Nicole West, vice president of digital strategy and product at Chipotle, told PYMNTS in an interview, “We’re really excited about how the loyalty program can be a key enabler of our digital flywheel — using this data to enable increasingly personalized, relevant experiences to our members and our customers in general.”
You may also like: Chipotle: Brands Can Drive Loyalty Without Bearing the Cost of Freebies or Discounts
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