Main Benefits
- It is a standard, easy to understand, punch card-like loyalty program.
- The rewards catalog is relevant to customers and the rewards value is set at the right level to motivate them to purchase frequently from McDonald's.
Program rules
Here are the rules of the McDonald's Coffee Rewards Program which was available in the USA as of 2020.
Customers can get a 6th free McCafé drink when they buy 5, if they purchase via McCafe App. It works like a digital version of a punch card. Once a customer had 5 drinks, a code + QR voucher code will appear on their app that they can scan at the counter to get their reward. The free drink voucher is valid 90 days after the issuing. The discounted drink does not “earn” a stamp for the app.
If you get the discounted drink you don’t get a stamp for it.
Best Practices
- Launching a digital punch card is a much safer solution than regular punch cards, as it is more difficult to forge and abuse it. On the other hand, it is also easier for customers to use, as they usually have mobile phones with them.
- For even easier redemption of the rewards, mobile app should work offline as well.
- Set up a short timeframe for the reward redemption to avoid growing liabilities from not yet redeemed rewards.
- Set the reward and the stamps to be non-transferable if you want to reward only the truly loyal customers and avoid fraud.