McDonald’s Sees Revenue Potential in Mobile App Use

Its loyalty program boasts 25 million active app members within the previous 90 days.

December 09, 2022

ALEXANDRIA, Va.—McDonald’s is leaning into how it can increase traffic to its mobile app and create recurring revenue via seasonal promotions, including the chance for customers to win free McDonald’s for life, reports CNBC.

According to the CEO Chris Kempczinski, about two-thirds of McDonald’s customers who have used the app in the last year have been active on it in the last 90 days, while CMO Tariq Hassan told CNBC that app users are “more meaningful and more profitable” than non-app using customers.

For comparison, as of Sept. 30, Starbucks had 28.7 million active U.S. members during the last quarter, and Chipotle had 30 million, according to CNBC.

Hassan told CNBC that roughly 40% of digital customers are incentivized to use the app when they see marketing and paid promotions. Camp McDonald’s was a campaign the company held over the summer, which added 2 million app users.

Hassan says the fast-food chain’s digital strategy doesn’t mean to be flashy, and that he and his team are OK with it being “boring.”

“You don’t change your strategy just to change it, to do the new and exciting thing,” he said.

A “boring” tactic McDonald’s used targeted its menu.  Early in the COVID-19 pandemic, the chain eliminated items like parfaits, salads and LTOs and instead chose to focus on the classics such as the Big Mac and McNuggets. The moved was a success as U.S. sales for the company increased as the pandemic waned, 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’s app can use a designated lane and receive their food and drinks via a conveyor, and team members can start preparing orders once customers are near the restaurant.

Smaller than a traditional U.S. McDonald’s restaurant, the concept is geared toward customers who don’t plan to eat onsite and orders for delivery.

A recent Harvard Business Review study on loyalty programs found three takeaways. NACS Magazine dove into loyalty programs and how they can provide convenience retailers with key consumer insights and a competitive edge.

A free NACS webinar is available that shows retailers how to improve their current loyalty program.

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