McDonald's To Launch MyMcDonald's Loyalty Program In July: Here's How It Works

McDonald’s (MCD) will roll out its first loyalty program with the MyMcDonald’s Rewards at participating restaurants nationwide on July 8.

McDonald’s decision to launch the loyalty program comes after months of testing in the U.S. in areas such as Arizona and New England, Restaurant Business reported.

Back in April, McDonald’s U.S.A. President Joe Erlinger told analysts the burger chain saw digital sales of nearly $1.5 billion in Q1.

McDonald’s is betting on sending those sales higher, as more customers flock to the chain to take advantage of offers provided through the MyMcDonald’s Rewards program.

McDonald’s Rewards work by earning customers 100 points for every dollar they spend, with 16 different reward options split into four different reward tiers, CNBC said.

Restaurant Business reported that smaller items, like hash browns, ice cream cones, McChickens or cheeseburgers, would cost 1,500 points to redeem. items like a medium fried or large iced coffee would be 3,000 points.

Larger items like a large Frappe, Filet O-Fish, large fries, or a Sausage McMuffin with Egg are 4,500 points each, and Happy Meal, Big Mac, Quarter Pounder, or Bacon Egg and Cheese Biscuit are 6,000 points each, the news outlet said.

As an added perk, all customers that join MyMcDonald’s Rewards will earn 1,500 points after their first order just for signing up, CNBC said.

The loyalty program excludes delivery, Reuters reported.

McDonald’s will also use the loyalty program to its advantage when customers order with the chain. Employees greet loyalty members by name in drive-thru lanes, and a personalized email will be sent to them after they pick up their orders detailing upcoming deals, CNBC said.

MyMcDonald’s Rewards is one of several initiatives that McDonald’s has undertaken this year to draw in customers as it looks to compete with its rival restaurant chains.

MyMcDonald’s Rewards will go head-to-head with restaurants like Dunkin’, Burger King, Popeyes, and Starbucks that have successfully launched loyalty programs as it looks to garner customers and add to its 20 million app users.

It will also give McDonald’s the opportunity to collect data on its customers and market directly to them.

“The loyalty for us is potentially a big, big idea in the digital space because of everything else that opens up,” McDonald’s CEO Chris Kempczinski told investors earlier in June, (via Restaurant Business). “Loyalty becomes the gateway to knowing your customer, and then once you know your customer you can imagine all the other benefits that come out of that.”

Kempczinski also said McDonald’s plans to launch the loyalty program in the chain’s six biggest markets, including the U.S., Canada, and possibly Germany, by the end of 2022 (via Reuters).

Shares of McDonald's were trading at $234.83 as of 11:16 a.m. EDT on Tuesday, up $1.93, or 0.83%.