McDonald’s enters the loyalty space with ‘MyMcDonald’s Rewards’

Marketing
-
Jul 12, 2021
Henry Bewicke
Henry Bewicke
Content Writer
3
Min to read

Every day almost 40,000 McDonald’s restaurants serve 69 million people in 118 different countries.

On 8 July, the world’s largest fast-food chain did something it’s never done before, its first loyalty program in its home market of the United States - MyMcDonald’s Rewards.

Why is McDonald’s pursuing loyalty?

Millions of McDonald’s customers now use the McDonald’s app, which allows them to browse nutritional information, and redeem digital coupon codes.

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To leverage this trend, McDonald’s has decided to invest in customer retention with MyMcDonald’s Rewards. McDonald’s customers in France and the UAE have been able to earn loyalty points on their McDonald’s orders for a while, but this is the first time it’s been offered in the home of the Big Mac.

A US-wide loyalty program is a game changer because the US is such an important market for McDonald’s. It accounted for 40.6% ($7.66 billion) of the brand’s global revenue in 2020.

What will ‘MyMcDonald’s Rewards’ look like?

MyMcDonald’s Rewards is an app-based, tiered loyalty program that rewards customers with points when they buy McDonald’s menu items.

For every dollar customers spend, they’ll be rewarded with 100 rewards points. They can save these points on their profile/app and exchange them for select items from the McDonald’s menu.

These reward menu items are separated into four tiers, each with different points requirements:

Tier 1: (1500 points)

Cheeseburger, Hash Brown, Vanilla Cone, McChicken

Tier 2: (3000 points)

Medium Fries, 6 Chicken McNugget, Sausage Burrito, Large Iced Coffee

Tier 3: (4500 points)

Large Fries, Fillet-O-Fish, Sausage McMuffin with Egg

Tier 4: (6000 points)

Big Mac, Happy Meal, Bacon Egg & Cheese Biscuit, Happy Meal

Until the end of the year, McDonald’s will also offer a 1500 point bonus for any customer that signs up for MyMcDonald’s Rewards.

Loyalty as part of the brand’s wider strategy

MyMcDonald’s Rewards is part of the wider ‘MyMcDonald’s’ initiative. It aims to improve the overall McDonald’s customer experience and brand with digital innovations.

McDonald’s is already known for its focus on customer service and its wildly popular, customer acquisition driving promotions, like McDonald’s Monopoly.

But it’s now adopting a more omnichannel approach to its customer interactions with the MyMcDonald’s initiative. Features being rolled out include digital ordering kiosks, digital menu boards, flexible payment options, delivery, and now targeted loyalty rewards.

Starbucks was one of the first retail food and beverage retailers to launch a loyalty program back in 2009. By 2020, Starbucks Rewards had more than 19 million members and accounted for nearly 50% of the brand’s revenue. Time will tell if McDonald’s can see a similar level of success.

If you’re interested in finding out more about loyalty programs, check out our loyalty program playbook. Or find out how we helped one of our APAC food and beverage customers build their very own gamified, tiered loyalty program.

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Promotion tips
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Case Studies
Expert Advice on How to Build Your Loyalty Program
Get Your Free White Paper
8 types of loyalty programs
Must-have loyalty features
Key metrics and how to track them
Download Your Talon.One Loyalty Playbook
Loyalty Playbook Cover
Best Practices for loyalty programs
How to gain a competitive advantage
Your definitive guide to loyal customers