The News, Views, Insights, and Opinions affecting consumer engagement
That You Need to Know
In this week's customer engagement recap:
- Chipotle’s Loyalty Woes: An Update
- Chipotle spent millions launching an incredible rewards program for customers — but nobody cared
- The State of the Incentive Industry
- Three Years of Customer Engagement & Loyalty Stats, Summarized
- What Women Want in a Loyalty Program
Chipotle’s Loyalty Woes: An Update (Social Annex)
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.
The State of the Incentive Industry (Creative Group)
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 of Customer Engagement & Loyalty Stats, Summarized (The Access Loyalty Blog)
What Women Want in a Loyalty Program (Sweet Tooth Rewards)