With the announcement that McDonald’s will launch its first loyalty program nationwide in July, one of the world’s top brands has indicated that the shift to digital relationships between restaurants and their guests is accelerating. What’s more, it’s making a commitment to collecting zero-party and first-party data, something that all brands will find increasingly important as the landscape changes around data usage and data privacy.   

Just as e-commerce companies like Amazon have long provided personalized experiences by getting to know their customers, McDonald’s aims to do just that by understanding each customer to keep them both engaged and loyal. That is, encouraging their guests to come back time and time again.  

Of course, the bottom line is the bottom line, and loyalty programs are proven methods for delivering real value, something any of our more than 500 clients can tell you. Loyalty customers deliver larger checks and more frequent visits, but the true value lies in the customer insights. McDonald’s is about to learn the same lessons that companies like Jimmy John’s, Panera Bread, and Papa Murphy’s put into practice every day.  

 The real goal is in getting to know their own customers well enough to motivate guest behavior through AI-driven personalized offers. In the QSR world, which is dominated by low prices and razor-thin margins, brands must understand these motivations and make adjustments without giving away product unnecessarily. This means using artificial intelligence to create personalized, relevant engagement that drives individual action. Some of our clients have seen great success by using AI to predict guest behavior and fashioning the next best offer that generates incremental activity. 

 All of this is only possible if brands like McDonald’s can capture the same zero-party and first-party data that an e-commerce company can grab through a digital property like a website. This means leaning into digital ordering, which is something that consumers are primed to do. Research we conducted with PYMNTS indicated that in 2020, 63% of the $769 billion that consumers spent on restaurants last year was on takeout, and 89% of that spend happened through digital channels. One layer deeper, we found that customers who belong to loyalty programs spend twice as much as non-members.  

 To this end, tying the loyalty program to the mobile app is a key part of the overall strategy. When we surveyed restaurant patrons, 92% of vaccinated restaurant customers who shifted to online ordering during the pandemic told us that they plan to continue ordering this way, even now that restaurants in the US have mostly reopened. 

 With everything centered on the mobile phone, McDonald’s next step could be in creating more digital experiences that make it easier and faster to sign up and use loyalty, even for those who don’t have the app. We’ve helped some of our clients integrate with NFC payments through Apple Pay and Google Wallet so that when a customer taps to pay on their mobile device they can gain or use rewards, or even sign up for the program, right from their phone.  These digital experiences are super easy for the guest and greatly increase program enrollment and engagement. 

 I believe McDonald’s will use loyalty to accomplish what all of our clients do: increase visits, increase spend, and make visiting a habit for their guests, ultimately, boosting the top line to add to the bottom line. 

Like most of America, the restaurant and c-store industries will be happy to bid 2020 goodbye and hope for a fresh start in 2021. As we at Paytronix look toward the future, we see a brightening on the horizon, one that may even end in a large party.

But getting there is going to mean change, not only in how the industry thinks about guest engagement, but also in how restaurants themselves are constructed. We predict that as restaurant and c-store brands move beyond the pandemic, they will need to make significant investments in the technology infrastructure that enables them to focus on truly owning the guest. […]

Recent events have brought systemic racism into clear focus.  As a step forward, we are following the lead of many great companies, like Nike, Twitter, Target, Ben & Jerry’s, and a growing list of others by adding a company holiday dedicated to Black equality, beginning with this Friday, June 19th (Juneteenth).  

Here at Paytronix, we employ bright, curious, and empathetic people, many of whom are engaged directly in the fight against racism. Members of our team have been involved in the Black Lives Matter movement, including taking part in marches and protests. Our hope is that we can use this Juneteenth holiday time to read, reflect, and help as we look to change our society for the better.   

We have shared books, documentaries, and podcasts, with one another over the course of the last two weeks and thought you might enjoy them as well. Here are links to a few items that may inspire all of us to be part of the solution.  

 Suggested books, documentaries, and podcasts:  

• Between the World and Me by Ta-Nehisi Coates 
• Chasing the Scream by Johann Hari 
• Just Mercy: A Story of Justice and Redemption by Bryan Stevenson  
• Doing Justice: A Prosecutor’s Thoughts on Crime, Punishment, and the Rule of Law by Preet Bharara  
• Documentary “13th”  
• How to Be an Antiracist by Ibram X. Kendi 

COVID-19 has had a tumultuous effect on your business and, in turn, our business as well. We are all experiencing difficult times. Clients like you have shared with us how important our services have been in navigating the current situation, from sending a historically large volume of messages to quickly launching additional touchless solutions.

I am writing to give you an update on what we are doing to ensure that the Paytronix platform is available to you now and for years to come. 

Our primary move was to secure our financial future by obtaining an additional $10 million in funding, led by Great Hill Partners and our company’s cofounders. This funding represents the faith that we have in Paytronix. […]