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Dive Brief
More free items, greater flexibility in redemption and an in-store campaign to boost enrollment could help the fast casual giant expand its already considerable rewards base.
Chipotle’s rewards program is a major traffic driver, with 21 million active members. Upwards of 90% of Chipotle’s digital transactions are connected to its rewards system in some way, but only 20% of its in-store transactions are, per the release. Chipotle will leverage the new program in an effort to increase the volume of loyalty-connected, in-store transactions.
The chain is “launching a comprehensive in-restaurant acquisition campaign alongside the relaunch. The effort includes prominent in-store placements such as menu panels, table tents, cups, receipts and cashwrap messaging to capture guest attention,” according to the press release.
This will also be accompanied by additional training for workers to ensure they communicate consistently with consumers about the rewards. Chipotle will roll out a systemwide incentive program connected to member signups to support this employee focus on loyalty acquisition.
For customers, the chain is adding several new rewards features. New members will now receive free chips and guac for signing up. Consumers also have 30 days to redeem birthday rewards and can select their reward, such as guacamole, queso, chips or a fountain drink. The brand is bringing back Freepotle, its recurring free food promotion, and will offer consumers a free monthly bonus reward with a qualifying purchase.
One of the more notable changes is the addition of new categories of rewards at lower point thresholds. Chipotle currently allows consumers to redeem a full entree. Under the new program, they will have the option to redeem a 50% discount for fewer points, giving earlier access to a discount.
When coupled with the push to recruit new members in-store, Chipotle’s moves could help it convert one-time consumers into regulars. In a recent report on the cutting edge of loyalty, restaurant tech firm Paytronix noted the chain’s badge-based gamification system has helped drive frequency in the crucial 90-day window after consumers join the program. The new changes strengthen the incentives for early visits.
Chipotle could use the traffic assist. The brand has seen same-store sales slip in three of the last four quarters. That erosion, especially drops in transactions, has pushed the brand to launch a multi-pronged “Recipe for Growth” turnaround plan.
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