McDonald's Unveils First Loyalty Program

If you’re not already lovin’ McDonald’s, the fast food chain hopes to change your mind with their new loyalty program.

Just as Starbucks announced that their loyalty program was under fire, McDonald’s revealed that they were in the process of building their own loyalty program into its existing smartphone app. The program is still in its early stages, but it will likely reward customers with deals based on the number of visits they make to McDonald’s every month. The program will also track customer purchases and learn their menu preferences—meaning that if a customer hasn’t visited a McDonald’s in a while, the app may prompt them to return with promotions on their favorite items.

Some are viewing McDonald’s loyalty program announcement as a power move to compete with other breakfast competitors like Starbucks and Dunkin’s Donuts, which already have their own programs.

Starbucks’ app currently rewards customers for every visit they make to one of the coffee chain’s stores, which is how McDonald’s is considering setting up its program. However, Starbucks recently came under fire, after announcing that starting in April, customers would earn reward stars based on the amount of money they spend at Starbucks, as opposed to the current system of one star per visit. Many Starbucks fans are upset that the new loyalty program will reward customers who get more expensive drinks like lattes, while essentially punishing those who just get black coffee—Starbucks’ cheapest drink.

“If we see a thawing off, we can entice them with their favorite products to come to the restaurant,” said McDonald’s USA President Mike Andres. “That’s the future of customer relationship management. We think it can be a significant sales layer for us.”

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