For a quite a while, Chipotle executives didn’t believe loyalty programs were for them. In fact, Mark Crumpacker, CCO/CDO of Chipotle, said in September 2015*, “We don’t believe the general supposition that loyalty will make less frequent customers more frequent.”
However, from the fourth quarter of 2015 into the early second quarter of 2016, Chipotle had a few health scares that contributed to its stock prices — and sales — to take a tumble.
In summer 2016, Chipotle was ready to rethink its stance on loyalty programs and launched its Chiptopia Summer Rewards, a three-month tiered loyalty program.
It’s reasonable to assume, based on the structure of the program (that we’ll cover next) and the business challenges they were experiencing, that
Chipotle’s motivation in creating its loyalty program was to increase visits.
Note: Before we go any further, we want to make it clear that Chipotle is not a client of Paytronix. This blog post is designed to analyze the Chiptopia program, share what worked and what didn’t, and help you think — or rethink — your own loyalty program.
The Chipotle Loyalty Program Structure: How It Worked
A cornerstone of email marketing is testing. Perhaps it’s the day of the week that you send the message, or even the imagery and text inside the message. Arguably the
most prevalent element marketers test is the subject line. The appeal of doing so is clear: You have approximately two seconds to get the reader’s attention in their inbox as their finger hovers over the delete button. Optimizing those seconds is mission critical. Search for “subject line testing” on Google and you’ll be consumed by over 6.4 million results. The majority of that content will tell you that the “winning” subject line hinges on one key metric: the message’s open rate.
One of our clients, Pinkberry, performed an A/B subject line test. With an open rate that was 12 percent higher than subject line A, subject line B outperformed its counterpart. Based on conventional wisdom, Pinkberry should have gauged subject line B as the clear winner, right? Wrong. Most email marketers […]
How many times have you sat at your desk watching the results of a campaign you were excited to roll out, only to see those stats flat line, or worse, nosedive into a negative return on investment? Without a doubt it is the defining moment of any marketer’s career. It becomes that “aha” moment where you can say, “I probably should have segmented the audience for this campaign.”
With 72% of U.S. adults using a smartphone, mobile technology is changing the way that brands connect with their customers. Most brands have started to roll out a mobile strategy that utilizes an app. The average smartphone user has around twenty-seven apps on their phone, but studies show that most users spend 80% of their smartphone usage on just five apps. What are the odds that your app would be one of those? That leaves only 20% of their usage time for apps outside of those five, meaning your app is competing with over twenty apps for the user’s attention.
The good news, a mobile strategy goes far beyond just your mobile app. By utilizing a full mobile strategy your brand can get to the forefront of your customers’ minds. So, beyond a mobile app, what other elements of a mobile strategy can your brand implement to engage customers and motivate them to come into your store? […]
Turn customer engagement into meaningful guest experiences.