A person wears a protective face mask outside McDonald’s in Union Square during the coronavirus pandemic on April 30, 2020 in New York City.
Noam Galai | Getty Images
McDonald’s said on Wednesday that it has entered the next phase of testing a US loyalty program before launching nationally later this year.
The fast food giant has successful rewards programs in other countries, such as France, but this is the closest we can get to bringing one to its home market. In November, the company began testing in Arizona and Nevada. It added restaurants in New England to the test a few weeks ago. As of Wednesday, approximately 900 locations out of McDonald’s 14,000 restaurants will be part of the test.
Starbucks and Chipotle Mexican Grill are among the restaurant chains that have used rewards programs to expand their loyal customer base and encourage more frequent visits. Customer data from those programs can also help the company personalize member promotions and encourage consumers to stop by restaurants at less busy hours.
Alex Menendez, a Miami-based franchisee, is a member of the operator committee that oversees the loyalty program test.
“It’s no secret that we’re late in the game towards loyalty, but I think on the operator’s part we’ve been wanting to reward our loyal customers for years,” Menendez said.
MyMcDonald’s Rewards members earn 100 points for every dollar they spend and have the opportunity to earn even more points from targeted promotions, such as double points for a visit on a Monday. The program is split into four levels – 1,500, 3,000, 4,500, and 6,000 points – for various redemption options in 16 menu items.
Members can order and pay in cash and mobile to buy their food and earn rewards. When the program is launched nationwide, customers will also be able to pay by credit or debit card.
Alycia Mason, McDonald’s vice president of digital, media and customer relationship management, said the loyalty program is changing the customer experience in several ways. McDonald’s employees will greet loyalty members by name as they drive through the drive-thru line, and customers will receive a personalized email after picking up their orders with tailored deals.
“It felt more special and different from my normal McDonald’s experience this way,” said Mason, who tried the program on a recent trip to Arizona.
But the rewards aren’t just reserved for McDonald’s customers. The employees will also have the opportunity to accumulate points through training related to the loyalty program. Menendez said training employees on digital initiatives was not a priority in the past, so the franchisees were looking for a way to get their employees involved.
The loyalty program is part of the company’s new “MyMcDonald’s” platform, which brings together the various technology investments, such as the app and digital menu boards, and makes it easier for customers to order and pay for their food. Like many restaurant chains, the coronavirus pandemic has led to an increase in McDonald’s digital orders, further accelerating the pre-crisis trend.
Shares of McDonald’s are down 2% in the last 12 months, putting it at a market value of $ 161 billion. While US restaurants bounced back from the pandemic relatively quickly, European lockdowns hit sales in the fourth quarter.