McDonald’s sees revenue potential in using mobile apps
ALEXANDRIA, Va.—McDonald’s is looking at how it can increase traffic to its mobile app and create recurring revenue through seasonal promotions, including the chance for customers to win a free McDonald’s for life, CNBC reports.
According to CEO Chris Kempczinski, about two-thirds of McDonald’s customers who have used the app in the past year have been active there in the past 90 days, while CMO Tariq Hassan told CNBC that users of the application are “more meaningful and more profitable”. ” than customers who do not use applications.
By comparison, as of Sept. 30, Starbucks had 28.7 million active members in the U.S. last quarter, and Chipotle had 30 million, according to CNBC.
Hassan told CNBC that about 40% of digital customers are enticed to use the app when they see marketing and paid promotions. Camp McDonald’s was a campaign the company ran over the summer that added 2 million app users.
Hassan says the fast food chain’s digital strategy doesn’t mean being flashy, and he and his team are okay with that being “boring”.
“You don’t change your strategy just to change it, to do something new and exciting,” he said.
One “annoying” tactic used by McDonald’s targeted its menu. At the start of the COVID-19 pandemic, the chain phased out items like parfaits, salads and LTOs and instead opted to focus on classics such as the Big Mac and McNuggets. The move was a success as the company’s sales in the United States increased as the pandemic subsided and customers returned to their normal routines.
“When you have that kind of strategic consistency, it gives you more time to wrap those windows with really interesting, exciting, and unexpected experiences,” Hassan told CNBC.
McDonald’s recently opened a test store with a new drive-thru innovation in Fort Worth, Texas, where customers who order ahead through the QSR app can use a designated lane and receive their food and beverages through a conveyor, and team members can start preparing orders once customers are near the restaurant.
Smaller than a traditional American McDonald’s restaurant, the concept caters to customers who don’t plan to eat in and order delivery.
A recent Harvard Business Review study on loyalty programs revealed three takeaways. NACS Magazine looked at loyalty programs and how they can provide convenience stores with key consumer insights and competitive advantage.
A free NACS webinar is available to show retailers how to improve their current loyalty program.