Today Chipotle announced a loyalty program. Previous business set backs namely E. coli, norovirus and salmonella has hit them hard. It drove their sales down and now they are turning to a loyalty program to increase traffic. How are they encouraging additional business and traffic to their stores? With a month to month loyalty program. They have structured their program with 3 levels. The more engaged the bigger the reward.
Mild - 4 visits in a month earns you a free burrito, bowl, salad or tacos
Medium - 8 visits in a month triggers another free entree
Hot - 11 visits in a month, you'll earn another free entree
If you maintain your status throughout summer, you'll earn a big reward at the end. Hot status each of the three months earns you catering for 20 people!
This is a structure aimed at encouraging consumers to make frequent visits. Communication and the ability for individuals to track their status is key! At any time, individuals need to determine where they are and what they need to do to reach their reward. If they are 1 or 2 visits away from attaining a tier, they should be notified. A mobile app comes in handy with pop up notification.
Engage individuals to drive behavior.