Dive Brief:
- McDonald’s is launching Make It Golden, a plan to improve the customer experience over the course of a multiyear commitment, the company announced Wednesday. Make it Golden is part of the McDonald’s > NEXT strategy, which launched in June.
- The MyMcDonald’s Rewards loyalty program will play a key role. Plans include the launch of a tiered loyalty program that includes offers beyond standard discounts, Morgan Flatley, EVP, global CMO and head of new business ventures, said on an investor call Wednesday.
- “McDonalds > NEXT will activate the full power of our global fandom, refocus on our McDonald's IP, further personalize the app experience for our loyalty members, and reactivate our occasional customers to support baseline guest count growth,” EVP and global CFO Ian Borden said on the call.
Dive Insight:
McDonald’s executives see MyMcDonald’s Rewards as a key growth driver as it works to increase frequency with existing members while driving interest from lapsed members.
The company’s nearly 220 million 90-day active loyalty members dine with McDonald’s 2.5 times as often as nonmembers, but the program has yet to reach its full potential, Flatley said.
The program launched five years ago, and membership has grown 45% over the past three years, according to Flatley. Different members have different behaviors and desires, and McDonald’s is refining its strategy to increase its appeal with both frequent and infrequent users.
Frequent loyalty customers, those who visit more than once per month, tend to be motivated by deals, events and new features, Flatley said. The forthcoming tiered loyalty program will offer such features.
“This could include exclusive benefits and access to things only McDonald's can provide, like earning points faster, early access to limited menu items and merch, or a coveted invite to a McDonald's launch event,” Flatley said. “These things really matter to them.”
The second group consists of casual loyalty members who visit at least once every 90 days, according to Flatley. These customers still want value, but they put a greater emphasis on positive and reliable experiences.
“For our fans visiting occasionally, the goal is to bring them back with more reasons to routinely come back to McDonald's and make them feel recognized and appreciated when they do,” Flatley said. “Rather than broad discounts, this includes highly personalized experiences based on the food, rituals and moments that matter most to them.”
For example, a customer who regularly visits for breakfast may receive personalized breakfast rewards, according to Flatley. A family would have the chance to earn offers and experiences designed for groups and opportunities to share points with other people.
McDonald’s also has its eye on an “untapped group” of 150 million infrequent loyalty members who don’t visit at least once every few months, Flatley said. The company wants them to reengage, but they are less likely to respond to merchandise, exclusive offers or experiences than active members.
MyMcDonald’s rewards will add new benefits to try and draw these customers into the ecosystem, according to Flatley. The company plans to introduce partnerships, and will add Uber ride credits and Disney+ subscriptions to its loyalty program later this year.
“This works across all cohorts to ensure McDonald's stays present in our customers' lives between visits,” Flatley said. “Evolving from a points program to a partnership platform has been clearly effective for bringing customers back into our ecosystem.”
