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Dunkin’ Donuts Hasn’t Unleashed Full Potential of Its Impressive Customer Loyalty

Loyalty360 tracks the ongoing outstanding performance of Dunkin’ Donuts as it relates to customer loyalty, customer engagement, customer experience, and innovative technology.

Dunkin’ Donuts’ DD Perks loyalty program, which launched three years ago, is a major source of pride for the company and it annually is ranked as a customer loyalty leader.

So what’s in store for Dunkin’ Donuts?

Well, according to Dunkin’ Brands Group CEO Nigel Travis, there is no resting on any past laurels.

“As I look back on 2016, I would sum it up as a year of accomplishments, but – and this is important – we still have not unleashed the full potential of Dunkin’ Donuts in the U.S., and I believe we will,” Travis stated during the company’s fourth-quarter earnings call on Thursday. “We know our brand can deliver more growth. Our consumer research clearly indicates that if we focus our efforts, we are capable of being the most beloved beverage-led on-the-go brand in the country. Not only does our consumer research tell us this, but the results of the DD Perks loyalty program clearly demonstrate our growth potential.”

Midway through 2016, Dunkin’ Donuts eclipsed a major milestone: 5 million members in its DD Perks loyalty program.

Meanwhile, Travis said the company has implemented a six-part plan to fuel Dunkin’s strategic growth in the U.S. and better position it as the beverage-led on-the-go brand. Included in this plan is building the coffee culture, faster and improved product innovation, targeted value and smart pricing, being a leader in digital, improving the restaurant experience, and driving consumer packaged goods and new channels.

“We have a great deal of confidence in this plan, particularly because it is rooted in the research we’ve conducted with 10,000 consumers, crew members, franchisees, and employees,” Travis noted.

In 2016, Dunkin’ Donuts Perks members who have been in the program for at least a year and made purchases in both Q4 2015 and Q4 2016 increased their average weekly spend by 9 percent year-over-year.

“I recognize that most of these are our loyal fans, but I see this as an indication of the impressive growth we can drive where we get guests into our digital ecosystem,” Travis added. “To that end, I’m pleased to announce that we have now surpassed 6 million DD Perks members with this group making up more than 10% of transactions in Q4.”

During the fourth quarter, Dunkin’ held its first-ever Perks week promotion in November, a week that was dedicated to appreciating and celebrating its most loyal guests with daily deals and special prizes, a campaign that really drove membership.

“We also launched On-the-go Ordering nationally in June, a huge operational and system accomplishment, particularly in a franchise system,” Travis added. “As a reminder, On-the-Go is an offering reserved for our Dunkin’ Perks members and enables them to order ahead and speak to the front of the line in store.”

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