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McDonald’s expands loyalty rewards program for its effectiveness in increasing visits frequency

Photo by: Andrew Hoang/Unsplash

McDonald’s is expanding its loyalty rewards program as the company has seen its effectiveness in building customers’ frequency of visits. This marketing strategy will be developed further as summer time begins.

Expansion of the restaurant’s loyalty programs

McDonald’s is one of the most known fast-food chains in the world. One can find one outlet in any country, so almost everyone may have already tried its burgers and fries. In the U.S., where it originated, it was estimated that at least 85% of the population have already dined or ordered for take-out at least once.

But while McDonald’s is a natural crowd drawer when people want some burgers that can be ordered fast, its sales can still dwindle at times, and this is why the company also uses strategies to keep people coming back.

Some franchises wish for more people to visit their stores, and one strategy that was proven to work was the incentives. This is why the restaurant has its own loyalty rewards programs, and this summer, McDonald’s is expanding its own scheme as the competition will only get fierce since other restaurants such as Wendy’s have such programs as well.

As per Restaurant Business Online, the fast-food chain is planning to broaden its “MyMcDonald’s Rewards” in the U.S. this year. McDonald’s USA president, Joe Erlinger, said during the company’s Q1 earnings call, “If loyalty can build frequency, given the base of customers we have in the U.S., that is just a tremendous unlock for us.”

The response to McDonald's Loyalty Program

McDonald’s rarely has issues with attracting customers, but since the company wants to further bolster its sales, acquire more customers and make sure they keep coming back, it is also devising plans on how to do this. As mentioned earlier, loyalty programs are a surefire way to do this.

The real challenge is retaining the customers, and the MyMcDonald’s Rewards proved to be the right answer for the company. The reward program’s other goal is to “create a platform that elevates the brand, excites customers, and engages crew members,” so this summer, McDonald’s will make this program even better.

Meanwhile, it’s not just the customers but the company workers’ response to the reward program that was said to be ”overwhelmingly” positive. McDonald’s believes that the rewards program will have a positive effect on sales results in its restaurants worldwide.

“We wouldn’t be doing this if we didn’t think there was going to be an incremental benefit to loyalty,” McDonald’s CEO, Chris Kempczinskihe, stated. “We’re not at the point of quantifying that. But our thesis is that there’s going to be an incremental benefit.”

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