Checking In With Chiptopia - The September 30 Customer Engagement Recap

By Brandon Carter | Updated on Sep 30, 2016 9:50:00 AM

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The News, Views, Insights, and Opinions affecting consumer engagement 

That You Need to Know

 

In this week's customer engagement recap:

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We thought Chipotle's strategy to launch a summer-only loyalty program would be a unique case study to follow. The brand has been rocked by repeated E. coli outbreaks, plus the program was sort of trial run with a three month expiration date. 

The results? According to this article, Chiptopia "miserably failed." 

  • Chipotle spent millions launching an incredible rewards program for customers — but nobody cared (Business Insider)

Business Insider's take on Chiptopia also rips the program. But it does uncover one tidbit worth relaying:

In August, Morgan Stanley wrote in a research note that the program had helped convince loyal Chipotle customers to resume their prior frequency, but had not impacted the more casual customers that make up 75% of the chain's customers.

If you channel Pareto here, you'll see that this rewards program wasn't a total flop, if it helped inspire that most-profitable 20% of customers. Yes, they'll want to expand the umbrella to lure in casual customers, but for now, solidifying their ideal customers ain't bad.

This recap of a roundtable has a lot of good nuggets around the incentives and rewards industry. Buried in there is a big point, though - incentives are a product of a corporate culture, and shouldn't be counted on to change the culture itself. Big, big point, as a lot of companies use incentives to try to fix what are larger, institutional engagement issues. It's good to see one company refusing to oversell capabilities.

Three years and over 1500 stats later, what have we learned? One, that a research-based marketing campaign can be pretty darn effective. And two, the three things in this article

Is it old school to think that we need to segment certain aspects of branding to appeal to a particular sex? No, not when there are clear differentiators between what men and women want from brands and from loyalty programs. It doesn't mean you have a "pink" side of your program and a "blue" side. It simply means adding elements that are attractive to your target audience, like extra redemption options or hyper-personalization. Lots of great examples in this article.
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Topics: Customer Engagement, consumer trends

Written by: Brandon Carter

Brandon is a writer and marketer for Access Development. He's a frequent blogger on customer and employee engagement & loyalty, consumer trends, and branding.

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