New Dunkin’ Brands Loyalty Program Accounts for Significant Growth in 2014

Dunkin Donuts loyalty programDunkin’ Brands credits the sharp increase in revenue during the fourth quarter of 2014 to DD Perks, its new loyalty program and mobile platform. Dunkin’ Brands, which includes Dunkin’ Donuts and Baskin-Robbins, saw a 20% year-over-year increase that drove net income up to a total of $176 million for fiscal 2014.

Nearly 25% of that increase is attributed to the fourth quarter, only a few months after DD Perks was officially introduced to improve customer experience, drive incremental and profitable traffic, and, most importantly, brand loyalty. Since its launch, the loyalty program has acquired 2.5 million members.

DD Perks uses a Dunkin’ Donuts rewards card that is activated when a member loads money into the account either at a restaurant or online. Points are then earned every time a card is used to purchase items at any participating Dunkin’ Donuts location. Every dollar spent earns five rewards points and after accumulating 200 points members receive a rewards coupon.

Since the loyalty program incorporates mobile app features and online user data, the company has been able to review its progress and determine exactly how successful DD Perks has become.

By tracking the spending habits of customers, Dunkin’ Donuts found that customer engagement rose dramatically. When compared to an average week from the previous year, DD Perks accounted for a 40% rise in customer spending, and a 30% rise in visits to the store. The success of DD Perks also comes from the company’s ability to incorporate data to further generate personalized offers that can be used to build customer engagement and modify behaviors.

“Loyalty programs continue to go through a renaissance,” Mark Johnson, CEO and CMO of Loyalty360, explained. “Loyalty is no longer about the program. It is about creating the unique and engaging experiences, processes, and customer-centric approaches that drive a unique and reciprocal relationship with the customer. Dunkin Donuts is succeeding in achieving this reciprocity.”

Similarly, Baskin-Robbins also saw strong sales growth in 2014. Revenue in the U.S. rose 4.7% overall, and by 9.3% in the fourth quarter alone. Dunkin’ Brands attributes part of this growth to One Plus Up, another marketing initiative and loyalty program that rewards customers with a free waffle cone with the purchase of a second scoop of ice cream.

These loyalty programs have laid a strong foundation for continued growth going forward. In 2015, Dunkin’ Brands plans to open more than 400 Dunkin’ Donuts stores and up to 10 Baskin-Robbins stores across the U.S. The company also plans to continue its international expansion to include the launch of 200-300 locations across Sweden, Austria, and China. 

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