Light cream, no sugar, espresso shot, please. Merchant loyalty program competition is heating up as Dunkin Donuts latest salvo is Perks Week. The five day promotion targets its best customers with a variety of offers and rewards, according to the following article.
Dunkin’ Donuts’ is rewarding its loyal customers as well as incentivizing new ones with Perks Week, a week-long celebration of its loyalty application users.
Each day of Perks Week will bring with it a different promotion. Users of Dunkin’ Donuts’ loyalty app will be afforded increased point multipliers and exclusive deals.
“Dunkin’ Donuts’ has more than five million DD Perks members, and through the rewards program they are able to earn points towards free beverages with each purchase of Dunkin’ coffee, espressos, sandwiches and more,” said a Dunkin’ Donuts spokesperson. “All daily deal offers are available to both existing DD Perks members and anyone who enrolls in the program during the week.”
Dunkin’ Donuts, like many modern retailers, has seen the value of mobile as the new primary mode of digital interaction between brands and consumers.
As mobile continues to grow in ubiquity as the dominant digital channel, it brings with it new opportunities for engagement and connection with consumers. One of the most powerful ways that connection manifests in the brand-consumer relationship is the loyalty app.
Since recurring customers are more powerful than new ones, Dunkin’ Donuts is doing everything it can to keep them and Perks is their best tool for doing so. To reward those customers and keep them coming back, Dunkin’ Donuts designated this week as Perks Week.
Dunkin recently beefed up its integrated mobile app that includes payment, rewards, and remote ordering. They are now putting it to the test with a week-long promotional effort prior to Thanksgiving. Assuming that imitation is the sincerest form of flattery, no doubt Dunkin has noticed how rival coffee shop Starbucks has mastered the art of single merchant loyalty programs. Customer engagement is key to make loyalty members keep coming back. Meanwhile Starbucks has been offering its own version of targeted customer promotions on its mobile app. Coffee lovers and snackers should be enjoying this head-to head battle of the coffee shops.
Overview by Raymond Pucci, Associate Director, Research Service at Mercator Advisory Group
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