7 Internet Article
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7 Internet Article
The article talks about Chipotle which is a fast-food business chain that intends to use technology to boost its sales. The business has a loyalty program similar to that of Starbucks called Chipotle Rewards which is now available in three test markets, Arizona, Kansas, and Phoenix but which will be launched officially in 2019 (Taylor 1). The loyalty program awards ten points for each dollar a customer spends, and once one attains 1250 points, they can cash them for a free entrée. Chipotle has been struggling to build its sales to the levels it had three years ago before its E. coli outbreak. Therefore, this program represents a tremendous effort by the business to use technology to improve sales.
Additionally, Chipotle has been giving incentives to its customers such as free guacamole so that they can download their app (Taylor 1). It has also been modifying the organization of their stores to fit the needs of customers who pick mobile orders. Similarly, Chipotle is testing drive-thru in various locations specifically for mobile orders. Digitalization also allows the business to be able to communicate with customers and also collect information. Therefore, this makes their work easier.
I think this reward program is relevant because it brings rewards to both customers and the business. For the business, this program is useful when it comes to retaining customers. Customers will want to join the program because they save money and also get free rewards.
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This program also attracts new customers who may stick around afterward. Likewise, it makes existing customers feel appreciated, and they may support the business and also recommend it to others. Customer loyalty not only increases sales but it also boosts the reputation of the business. This reward program will also make customers happy, and they will be more likely to come back again instead of going to other companies which don’t offer such rewards. Similarly, the mobile orders and drive-thru make it convenient for customers. Therefore, it’s evident that the Chipotle Rewards is highly appropriate.
Work Cited
Taylor, Kate. “Chipotle Is Copying Starbucks With Its New Strategy To Boost Sales (CMG, SBUX).” Pulselive.Co.Ke, 2018, https://www.pulselive.co.ke/bi/strategy/chipotle-is-copying-starbucks-with-its-new-strategy-to-boost-sales-cmg-sbux-id8923866.html. Accessed 3 Oct 2018.
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