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
Sandy Nelson to speak at PXUX: Unveiling how Duffy’s culture of loyalty drives 70% of all transactions through active loyalty members
As restaurants and convenience stores strive to establish a culture of loyalty, Duffy’s Sports Grill stands out as the premium model for success. A Paytronix customer since 2010, Duffy’s runs a highly successful MVP rewards program that has engaged nearly a half-million active members. The MVP program is a core element of the brand, and by using the Paytronix tools the Duffy’s team has been able to harness the power of their guest data to effectively drive business results and customer loyalty. The loyalty program drives more than 70% of all transactions across Duffy’s 33 casual-dining restaurants in Southern Florida.
Duffy’s Director of Marketing Sandy Nelson has agreed to share her insights as a featured speaker for this year’s Paytronix User Experience (PXUX 2016) on August 24th and 25th. Nelson will be speaking about the importance of creating a culture of loyalty, and why loyalty engagement needs to be every restaurant’s number one priority.
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.”