Dunkin' Donuts Finds Steady Progress With Mobile App

by Mercator Advisory Group 0

It may not yet share the same successes Starbucks has found, but Dunkin’ Donuts is becoming pleased with the steady sales its mobile-payments app is bringing to its franchise customers. The Canton, Mass.-based company says more than 3 million customers have downloaded Dunkin’s mobile app, which launched last August.

From PaymentsSource:

Company development and customer use of the Dunkin’ mobile should steadily increase, John Costello, president of global marketing and innovation for Dunkin’ Brands Group Inc., said in a July 25 conference call to discuss the company’s earnings. “The more we learn about mobile, the better we will get at it,” Costello said.

Dunkin’s next plans to test and roll out mobile loyalty programs, he added.

Dunkin’ is testing a different flavor of its mobile app in Seoul, South Korea, said Nigel Travis, chairman and CEO of Dunkin’ Brands. “The mobile app we are testing wakes you up in the morning and displays our breakfast menu and offers right away,” Travis said.

The company is also testing a Fresh Brew model of stores that provide free Wi-Fi connections and electrical outlets for computers and smartphones, said Paul Carbone, Dunkin’s chief financial officer.

Branded mobile-payment apps appear to be catching on with more restaurant retailers, including the Boston area’s Sabastians, as they discover positive results from their rollouts and the things they can do with the customer data they collect to improve company performance and customer experience. It may take time for Dunkin’ to reach the performance level of Starbucks, which in April reported that 10% of its revenue comes from its mobile app, used to initiate 4 million transactions per week. But Dunkin’ surely will continue to find success with its app as it finds new ways to boost the customer experience and to use the transaction data to improve both its own and its franchisees’ operations.

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