A person wears a protective face mask outside McDonald’s in Union Square during the coronavirus pandemic on April 30, 2020 in New York.
Noam Galai | Getty Images
McDonald’s said on Wednesday that it had entered its final phase to test a US loyalty program before launching it nationwide later this year.
The fast food giant has successful rewards programs in other countries, such as France, but it is the closest to bringing one to its home market. In November, the company began testing in Arizona and Nevada. It put restaurants in New England to the test a few weeks ago. As of Wednesday, about 900 seats in McDonald’s 14,000 American restaurants are part of the test.
Starbucks and Chipotle Mexican Grill are one of the restaurant chains that use rewards programs to expand their base of loyal customers and encourage more frequent visits. Customer data from these programs can also help the company personalize promotions for members and have consumers pop into restaurants at less busy times.
Alex Menendez, a franchisee in Miami, is a member of the management committee that oversees the loyalty program test.
“It’s no secret that we’re late in the game for loyalty, but I think from the operator’s point of view, we have wanted 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 with targeted promotions, such as double points for visits on a Monday. The program is divided into four levels – 1,500, 3,000, 4,500 and 6,000 points – for different redemption events in 16 menu items.
Members can use and pay for cash and mobile orders to buy their food and collect rewards. When the program is launched nationwide, customers can also pay with credit or debit cards.
Alycia Mason, McDonald’s vice president of digital, media and customer relationship management, said the loyalty program changes the customer experience in several ways. McDonald’s employees will greet loyalty members on their behalf as they move through the driveway, and customers will receive a personalized email after picking up their orders that fit future offers on them.
“It feels special and different from my normal McDonald’s experience in this way,” Mason said. He tried the program during a recent trip to Arizona.
But the reward is not just reserved for McDonald’s customers. Its employees will also have the opportunity to pick up points by completing the training of the loyalty program. Menendez said employee training on digital initiatives has not been prioritized in the past, and therefore the franchisees were looking for a way to involve their workers in this.
The loyalty program is one part of the company’s new “MyMcDonald’s” platform, which brings together the various technological investments, such as the app and digital menus, making it easier for customers to order and pay for their food. Like many other restaurant chains, the coronavirus pandemic has led to an increase in McDonald’s digital orders, further accelerating the pre – crisis trend.
Shares in McDonald’s have fallen 2% over the past 12 months, giving them a market value of $ 161 billion. While its U.S. restaurants bounced back relatively quickly from the pandemic, European closures hit sales in the fourth quarter.