Loyalty Blogs

One of the main challenges that franchise businesses often face is engaging and retaining customers consistently with a huge customer base across multiple locations. Building long-term customer loyalty is a great way to keep customers for a long time. That is why many franchise business owners are increasingly using loyalty programs that differentiate themselves from the overcrowded market.

In this blog, we will learn about franchise rewards programs like McDonalds loyalty program and how it is boosting customer engagement and leading to financial success.

Understanding How McDonald’s Loyalty Program Works

Launched in the US in the year 2021, the main motive of McDonald’s loyalty program was to enhance customer loyalty through a hassle-free digital experience. This is a point-based loyalty program that enables customers to get points for every dollar spent on their food orders.  The earned points can be redeemed later for free menu items or exclusive offers. The program is integrated with the McDonald’s app that helps customers keep track of their points and redemption effortlessly, which boosts deeper connections and provides more convenience.

Some of the main features of McDonald’s loyalty program includes-

• Point accumulation, where customers can earn 100 points for every dollar spent, boosting regular purchases and higher spend
• Redemption of rewards for a wide range of McDonald’s menu items like fries, McFlurries, etc.
• Tailored offers based on individual needs and purchasing behavior make customers more satisfied.
• App integration ensures that customers keep track of their points and get real-time updates about special offers.
• Prior orders and Mobile payment help customers to place orders for any specific time and pay through the app seamlessly without hassle.
• Redemption through multiple channels supported by the rewards program provides flexibility to all types of customers.

Apart from the features stated above, McDonald’s also makes use of AI to redefine its operations and boost customer satisfaction. Some of the main offerings are voice-based ordering in automated drive-thrus, AI-based dynamic menus for drive-thru, prediction of inventory needs, etc. Rather than just building a basic loyalty program, your business can make use of AI powered loyalty software like Novus to tailor customer experiences & create bespoke engagement initiatives, leading to long-term customer association with the brand.

Financial Benefits of MyMcDonald’s Reward Program

• Higher Visit Frequency

The best thing about this program is that it helps in increasing customers to visit McDonald’s stores more frequently. As they get points for every dollar spent, customers have more reason to choose McDonald’s over other competitors. This has not only increased visit frequency but also led to higher sales and enhanced customer loyalty, along with an increase in traffic and repeat business at different franchisee locations.

• Increase in Revenue from Loyalty Members

McDonald’s rewards program has been a game changer for McDonald’s, leading to significant growth in revenue. The sales that come from the loyalty members exceeded $ 20B, where $6Bn was generated just in the fourth quarter alone. This increase in substantial revenue contribution shows the long-term success of the program.

• Growth in US Store Sales

Within the fourth quarter of the program launch, McDonald’s US store has witnessed an increase in sales by up to 4.3%. This growth has not only contributed to the success of McDonald’s rewards program but also helped to enhance customer engagement, leading to higher sales.

Tips to Keep in Mind Before Building Franchise Loyalty Programs

Franchise loyalty programs act as a well-planned marketing strategy that is created to reward and incentivize repeat business from customers. These programs can take multiple forms, such as point-based, tiered, subscription-based, coalition, etc. The best thing about such programs is that they help collect and analyze customer data across different locations, which gives franchisees a competitive advantage for personalized marketing and informed decisions.

• Diverse Rewards

By making use of the franchise loyalty program, you can offer a wide range of reward structures aligned to your customer preferences and behavior, which will help incentivize higher spending and more frequent visits. Different rewards that you can choose to offer are exclusive discounts, free products, deals, etc., which can help enhance the loyalty program results.

• Digital Ecosystem

Ensure that you create a robust digital ecosystem that integrates easily with different platforms for online ordering, payment systems, social media, and more to maximize reach and promote more convenience. This will make your loyalty program accessible across multiple platforms, thereby boosting customer experience and increasing engagement.

• Regular Promotions

To keep your customers engaged, you must regularly update and promote attractive deals and offers in your loyalty program, which will help to encourage repeat business. Additionally, take time to understand your customers and create frequent and targeted promotions along with regular communication through the app or other channels.

• Personalized Data

Make use of smart data analytics in your loyalty program to offer relevant rewards and promotions based on customer behavior, which can be beneficial to boost long-term customer loyalty. Apart from that, you can keep track of customer preferences to personalize offers, which will help increase the effectiveness of your loyalty program.

Closing Statement

After going to the blog, we can see that the success of McDonald’s reward program depends highly on the well-designed loyalty strategies the brand has planned to push financial performance on the franchisee operations. Whether it is about increasing customer engagement, a higher number of sales, or revenue contributions, McDonald’s rewards program has become a game changer in contributing to the long-term growth of McDonald’s. Though there can be initial and ongoing costs for creating a franchise loyalty program,  they offer long-term benefits, making it worth the investment.

Are you a franchisee business owner who is looking for innovative ways to achieve success like McDonald’s? Look no further! Take the help of Novus, a reliable restaurant loyalty program software that has years of expertise in building customized, technology-driven loyalty solutions that cater to evolving customer needs. Book a demo with our team to discuss your requirements and boost your business success with enhanced customer loyalty along with financial success.