The war for coffee supremacy is heating up yet again. Not to be outdone by Starbucks' (NASDAQ: SBUX) ongoing customer loyalty program, Dunkin' Donuts (NASDAQ: DNKN) will begin rolling out a newly enhanced version of the DD Perks Rewards loyalty program November 4. The updated program leverages the company to become what John Costello, Dunkin' Brands president, called a step towards the company becoming a "leader in digital mobile and loyalty in the QSR industry," according to Mobile Commerce Daily.
The DD Perks Rewards loyalty program is adjoined to Dunkin' Donuts' mobile app, which launched in 2012, and has had over four million downloads. The program rewards customers by providing points for every dollar spent. Once members have accrued 200 points, they are rewarded with a free medium beverage. Additionally, the app allows customers to pay via their smartphone, send gift cards to others, and locate stores using a GPS feature. The newly enhanced rewards program will continue as a mobile-friendly program and has been streamlined for an easier, more customer-friendly rewards system.
"The real power of mobile and loyalty is the one-to-one marketing that they can enable," Dunkin' Brands Chairman and CEO Nigel Travis told The Wall Street Journal in January, according to MediaPost. "I believe they will be significant drivers of our growth in the next few years."
Initially, Dunkin' Donuts will roll the program out in four markets: Dallas, Texas; Portland, Maine; Orlando, Fla.; and Willsboro and Scranton, Penn. These markets will serve as a test run before the company launches the program nationwide in the first quarter of 2014.
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