Wendy’s is evolving its loyalty program beyond simple discounts. | Image courtesy of Wendy’s
People who love Frosties also apparently love tote bags and charm bracelets.
Wendy’s in May and June released the first merchandise drops in its history, allowing members of its loyalty program to scoop up free tote bags, charm bracelets, soccer jerseys, and even a digital camera.
They all went quickly. The 5,000 totes, 5,000 charm bracelets and 1,000 soccer jerseys were all gone within 90 seconds. The 20 Canon G2X cameras took just two seconds to be claimed.
Suffice it to say, Wendy’s proved its point. Members of its Wendy’s Rewards loyalty program don’t just want targeted promotions. They want something more. “That kind of velocity told us our fans were clearly hungry for exclusive, members-only experiences,” said Whitney Gretz, VP of media and digital marketing with Wendy’s.
The campaign was a first for the brand, a part of the evolution of Wendy’s Rewards beyond simple points and discounts. The chain is intent on building better relationships with those customers to drive more engagement.
Loyalty programs have become a staple in the restaurant industry as a way to get customers coming back, and for the most part it works. Ninety-six percent of customers told the National Restaurant Association that loyalty programs generate more bang for the buck, and three-quarters told the data firm Merkle that a loyalty program keeps them coming back to a restaurant.
Yet many brands are looking for ways to turn their loyalty programs into something more than simple points, rewards, and periodic discounts. Companies are more likely to give customers sneak peeks into new products and exclusive events and merchandise.
Wendy’s gave loyalty customers access to free merch in a series of drops. | Image courtesy of Wendy’s
Loyalty members traditionally visit restaurants more often and spend more when they do return, which provides a powerful incentive for restaurant chains to keep investing and evolving those programs.
For Wendy’s, establishing more customer loyalty could be key for the brand in its comeback effort. The chain’s same-store sales have been negative for five straight quarters, including a 7.8% decline in the first period. The company recently hired a new CEO in Bob Wright.
Wendy’s launched its loyalty program in 2020 and it currently has 56 million members. To date, however, the company had not done a merch drop before the May and June event. The chain used customer insights to help create the program.
“We see loyalty as a growth engine that rewards our most engaged fans with exclusive experiences they can’t find anywhere else,” Gretz said. “We deepen their connection to the brand and turn their advocacy into momentum.”
To participate in the merch drop, customers downloaded the Wendy’s app, signed up for the rewards program and opted into push notifications. The app would then notify customers of the availability of merch along with a link to an entry page.
Wendy’s didn’t just do the merch drop. The company provided loyalty members with early access to its new Cookie Dough Frosty in April, for instance. “Early access to new menu items is a powerful reward because it celebrates our most passionate fans first,” Gretz said.
Whitney Gretz | Photo courtesy of Wendy’s
The company plans to keep finding new ways to build engagement among its loyalty members. Wendy’s is considering interactive features such as personalized challenges, activity streaks, and milestone achievements to encourage its members to participate more often.
Wendy’s is looking toward other industries’ loyalty programs, such as hotels and airlines, which take steps to make their members feel more special, rather than just provide discounts.
“The best programs work because users feel genuinely recognized and celebrated,” Gretz said. “It doesn’t feel transactional.”
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