Del Taco Restaurants Inc. is the latest QSR chain to implement a loyalty program to motivate and reward customer behavior.
Launched in partnership with customer engagement provider Cheetah Digital, Del Yeah! Rewards leverages a four-tier structure and data gathering to create more personalized offers for the nation’s #2 Mexican concept chain.
Upon joining Del Yeah! Rewards, members immediately receive an offer for two free tacos and the ability to start earning points that can be used towards rewards.
Rewards tiers consist of Queso, Scorcho, Inferno and Epic—each designed with special rewards, challenges, badges, exclusive events and “experiences.”
In a conference call with financial analysts in July to explain Q2 results, Del Taco president and CEO John Cappasola said he didn’t expect the rewards program to be an immediate “massive catalyst” -- but rather, a forward step that will build momentum over time.
Ultimately, the program will be a key element to “leveling the playing field with some of these bigger” QSR brands, said Cappasola.
Depending on the tier they are in, Del Yeah! Rewards members earn eight to 12 points per dollar spent. Members of all tiers get free coffee with any purchase every day before 11 a.m., as well as a “birthday reward.”
“At this point, we haven’t launched any advertising for the app and have seen quite a bit of early adoption,” Erin Levzow, Del Taco’s vice president, marketing technology, tells Marketing Daily. “As we continue down the path, we will of course have an advertising plan that aids in the awareness and perks of the rewards program.”
In a July survey of 1,000 U.S. adults by creative-management platform Celtra, 45% of respondents said personalized offers/discounts would entice them to increase the amount they spend on a food order and to visit more often.
“COVID-19 has been a tremendous accelerant of digital transformation and brands have gone from a trickle of digital orders to a flood,” says Sean Eidson, general manager, loyalty and CRM at marketing services company Material. “Loyalty programs are a great way to capture and leverage those new digital relationships to drive profitable growth.”
Per the Celtra survey, email communications were cited by 45% of respondents as “the most relevant platform for content and news from QSRs” compared to 30% who chose Facebook, 15% Instagram and 4% Twitter.
Del Taco said in July that it experienced a 57% increase in registered app users since 2019, to nearly 1.5 million.
Founded in 1964, Del Taco says it serves more than three million guests each week at approximately 600 restaurants across 16 states.