McDonald's has massive growth ambitions for its loyalty program as part of an overall digital transformation strategy known as “Digitizing the Arches.” The fast food giant aims to leverage data and technology to connect with customers personally.
A recent Diginomica article noted that McDonald's is aggressively growing its loyalty member base across top markets. Over the last three years, active loyalty users have surged from millions to tens of millions across the chain's six most significant markets. Global enrollment now sits at a staggering 150 million users.
Customized Offers in the Palm of Your Hand
Central to McDonald's loyalty program is its mobile app. The app is the gateway to personalized deals, exclusive content, and rewards. Down the line, imagine getting surprised with freebies or discounts on your go-to McDonald's orders simply because you wandered near a restaurant.
By gathering data on individual preferences and behaviors through online and mobile interactions, McDonald's will refine its ability to market to customers 1:1. The chain has already successfully sent targeted mobile offers to loyalty members.
Building One of the Largest Consumer Platforms
The lynchpin in McDonald's digital upgrade is a revamped technology platform that seamlessly connects in-store and online systems. New IoT-enabled equipment will feed data back to headquarters to predict customer demand better.
McDonald's aims to leverage this data and improved analytics and AI capabilities to offer customers hyper-personalized products and service options. The goal is to build at-scale personalized marketing rivaling retail giants like Amazon and Starbucks.
Final Take
With over $100 billion in annual systemwide sales, McDonald's has the brand power and funds to pull off these ambitious digital goals. If they succeed in using data and technology to enhance customer loyalty, the chain could enter an even more dominant era. The next time the Golden Arches pop up on your phone, it may be an offer tailored just for you.
https://diginomica.com/digitizing-arches-getting-close-and-personal-mcdonalds-customer-loyalty-ambitions
