Chipotle Doubles Down on Digital Loyalty With Guac Mode

With 8.5 million rewards members, the quick-service restaurant is using targeted loyalty marketing strategies to further boost engagement.

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Need to Know

  • Chipotle announces plans to expand its digital rewards focus with a targeted marketing strategy ‘Guac Mode’, an expansion on its popular loyalty program. 
  • Customers have until February 20th to join Chipotle Loyalty and unlock Guac Mode.   
  • Once unlocked, loyalty members receive one free topping or side of guacamole with the purchase of a regular-priced entree. Rewards members also earn 10 points for every $1 spent, with 1,250 points netting them a free entree. 
  • Members of the QSR’s loyalty program receive exclusive offers and promotions targeted in both content and mode of delivery. 
  • Chipotle Loyalty currently has over 8.5 million members and the brand recently reported a same-store sales increase of 13.4%.

Analysis 

Chipotle is serving up free guac in hopes of boosting customer visit frequency and engagement, and it’s all happening through a digital lens. Guac Mode, available for a limited time through the quick-service restaurant’s mobile app, will feature special offers, including free guac and free delivery. The chain currently has over 8.5 million members in its loyalty program and hopes that Guac Mode will not only drive that number higher but allow it to deploy targeted promotions and content-specific marketing.

“We’re trying to be a brand that has this great one-two punch,” Chipotle CMO Chris Brandt told Restaurant Business. “I think that the combination of reach and frequency could be really powerful for Chipotle going forward. … The ultimate goal is to drive a little more frequency. And to drive a lot more engagement.”  

Chipotle’s digital orders have quadrupled over the past three years and exceeded $1 billion for fiscal 2019. Thanks to Chipotle’s strong digital efforts, it beat expected earnings and posted same-store sales of 13.4%. 

“I think loyalty and rewards programs have become table stakes because they allow brands to learn enough about our customers and deliver a highly personalized engagement opportunity,” Chipotle’s VP of digital strategy, Nicole West told Digital Magazine in an interview. “The more we know about how you interact with Chipotle, the better your experience can be in the future. Consumers are aware of that. They also want to be rewarded for that frequent engagement, and it’s a really easy case for consumers to make.”

Using data collected through its mobile app, Chipotle will be able to offer more personalized marketing, targeting offers in terms of content as well as the mode of delivery. Chipotle hopes that the appeal of Guac Mode will increase the number of rewards members, making its personalized marketing efforts all the more effective. 

New loyalty members have until February 20th to join and take advantage of Guac Mode, while existing members will already see the Guac badge available in their accounts.

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