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Tag Archives: Loyalty Programs

Marketing Tidbit: McDonald’s New Loyalty Program

28 Tuesday Sep 2021

Posted by grewallevymarketingnews in Chapter 18: Integrated Marketing Communications, Marketing Tidbits

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Integrated Marketing Communication, Loyalty Programs, Marketing Tidbit, mcdonalds

Come for cheap food, stay for free food? McDonald’s is hoping consumers will do just that, induced by the new loyalty program it rolled out in July. The MyMcDonald’s Rewards program, available through the company’s app, marks McDonald’s first venture into reward programs in the United States. (It previously has established similar programs in France and a few other countries.) Customers received 1,500 points at the moment they sign up, then earn 100 points for each $1 spent. The points can be traded for treats like hash browns (1,500 points), a large iced coffee (3,000 points), or a Happy Meal (6,000 points). The benefits for McDonald’s have been well established by research into loyalty programs, which shows that they tend to lead to a more engaged customer base and provide unparalleled access to valuable digital data. But what about the customers? Why would someone spend $600 at McDonald’s, in return for the prospect of receiving a $2.79 Happy Meal for free? It may seem unlikely, but the proof of concept is in the pudding—and the burritos and the coffee. That is, similar programs have worked well for other companies, including Chipotle and Starbucks. At Starbucks for example, the loyalty program grew by 18 percent from March 2020 to 2021, enabling the company to not just survive but even thrive during the pandemic.

Source: Dave Sebastian, “McDonald’s Loyalty Program Goes National,” The Wall Street Journal, June 22, 2021; Alexis Morillo, “McDonald’s New Loyalty Program Is Launching Today—Here’s How It Works,” Delish, July 8, 2021; Larry Dignan, “Starbucks Leverages Loyalty Program, Digital To Navigate Customers’ New Normal,” ZDNet, April 28, 2021

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Loyal Customers Don’t Like Change: The Challenges for Marriott in Adjusting Its Loyalty Program

18 Tuesday Dec 2018

Posted by Grewal Levy Marketing in Chapter 02: Developing Marketing Strategies

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Brand Loyalty, Loyalty Programs, Marriott, merger, Starwood Hotels

After Marriott purchased Starwood Hotels and its various brands, it initially kept the loyalty programs associated with the different brands …

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Beautiful Loyalty: Sally Beauty’s Effective Loyalty Program

07 Wednesday Jun 2017

Posted by grewallevymarketingnews in Chapter 06: Consumer Behavior

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consumer behavior, Loyalty Programs, Sally Beauty

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For the loyalty program at Sally Beauty, everything starts with an email address. It may end up with consistent customer …

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Congressional Hearings About Loyalty—But Not to the Country: The Ethical Considerations Surrounding Modern Loyalty Programs

19 Sunday Jan 2014

Posted by Grewal Levy Marketing in Chapter 04: Conscious Marketing, Corporate Social Responsibility, and Ethics, Chapter 09: Segmentation, Targeting and Positioning, Chapter 10: Marketing Research

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Congressional Hearings, Data Gathering, Loyalty Programs, privacy

Loyalty programs are so ubiquitous, spanning so many industries, that they may seem unquestionable. But recent hearings held by the …

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Archived Articles by Chapter

  • Chapter 01: Overview of Marketing (73)
  • Chapter 02: Developing Marketing Strategies (131)
  • Chapter 03: Social and Mobile Marketing (152)
  • Chapter 04: Conscious Marketing, Corporate Social Responsibility, and Ethics (143)
  • Chapter 05: Analyzing the Marketing Environment (211)
  • Chapter 06: Consumer Behavior (171)
  • Chapter 07: Business-to-Business Marketing (81)
  • Chapter 08: Global Marketing (114)
  • Chapter 09: Segmentation, Targeting and Positioning (141)
  • Chapter 10: Marketing Research (96)
  • Chapter 11: Product Branding and Packaging Decisions (200)
  • Chapter 12: Developing New Products (177)
  • Chapter 13: Services: The Intangible Product (139)
  • Chapter 14: Pricing Concepts for Establishing Value (93)
  • Chapter 15: Strategic Pricing Concepts (87)
  • Chapter 16: Supply Chain Management (106)
  • Chapter 17: Retailing and Multichannel Marketing (195)
  • Chapter 18: Integrated Marketing Communications (160)
  • Chapter 19: Advertising, Public Relations and Sales Promotions (185)
  • Chapter 20: Personal Selling and Sales Management (54)
  • Marketing Tidbits (24)
  • Uncategorized (3)

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