McDonald’s has entered the next phase of testing its loyalty program in the United States.
The fast-food giant began testing the program in Arizona and Nevada in November last year and more recently expanded it to several locations in New England. Nearly 900 locations out of 14,000 are currently part of the test.
The company’s effort to launch the program comes at a time when competing quick service restaurants (QSRs) are doubling down on their efforts to engage their customers through their loyalty and rewards programs. For example, Starbucks beefed up its loyalty program in September last year by enabling its customers to collect points even when they are redeeming rewards and accepting more payment methods in its app. The company’s efforts paid off, with 3 million customers joining its loyalty program in Q4 2020.
“It’s not a secret that we’re late in the game to loyalty, but I think from the operator side, we’ve been wanting to reward our loyal customers for years,” Alex Menendez, a Miami-based McDonald’s franchisee, who is a member of the operator committee that is overseeing the loyalty program test told CNBC.
The program will reportedly reward members 100 percent for every dollar they spend and will give them a chance to rack up even more points by participating in targeted promotions such as double points for visiting on a particular day of the week. Furthermore, McDonald’s customers will have the opportunity to redeem points at four different levels – 1500, 3000, 4500 and 6000 points for any of the 16 menu items and can accumulate rewards regardless of whether they are ordering ahead through the mobile app or paying with cash or cards in its physical stores.