McDonald’s new app has just launched online ordering in test markets and is looking to launch a customer loyalty program early next year. McDonald’s aims to create faster and more accurate service with their new ordering system. With the loyalty program McDonald’s aims to collect more data on customers in order to personalize their experience
With online ordering through the app McDonald’s believes it will get rid of the risk of people who get impatient with long lines and leave. Forbes predicts that there will be a 10% spending increase in sales due to this new app feature. With the upcoming loyalty program McDonald’s aims to create a more one on one interaction with customers. They will be able to collect data on behavior and preferences that they cannot collect in stores. They will see spending habits, frequency of visits, and more. The company hopes to also collect more customer feedback through the new app. McDonald’s plans to use push notifications to lure in customers who haven’t been to the restaurant lately to promote more business. Starbucks and Dunkin Donuts already have successful loyalty programs that have drastically increased sales and McDonald’s, although late to jump on the bandwagon, hopes to do the same. Currently, the app has 10 million downloads since late last year and they predict a very high increase after both new features are launched. One successful part of the app that is already featured is the ability to play McDonald’s monopoly instead of having to use their website. McDonald’s monopoly is their most popular sweepstakes game. It offers more convenience which is the main target for all features of the app.
Forbes failed to mention in the articles exactly how the McDonald’s loyalty program and online ordering will work. What perks will one earn and how long will it take or how much money do you need to spend in order to get loyalty rewards? If a customer orders online to avoid lines will there be a separate line for pick up? Do customers pick what time they want to pick up? Can customers pick up the food in the drive-thru or go in the store? If they use drive-thru won’t they just have to wait in line with all the other cars anyway? With the food being made so fast currently, how will the online order food stay fresh? With Starbucks being a more expensive drink company, it lures in more need for rewards. Will customers feel the need to have a loyalty program with such a cheap food option like McDonalds? Do consumers feel the need to get a free $1 fry unlike a $5 latte. McDonald’s is expected to have a huge increase in stock prices due to the new app whether or not it will have forecasted problems.