Dive Brief:
- Jimmy John’s replaced its surprise-and-delight rewards program on Monday with a points-based loyalty program called JJ Rewards, according to an emailed press release.
- JJ Rewards gives consumers 10 points for every dollar spent, and points can be redeemed for a variety of menu items including sandwiches, sides, desserts, drinks and sauces, Darin Dugan, chief brand marketing officer for Jimmy John’s, wrote in an email to Restaurant Dive.
- As consumer price-sensitivity has weighed on traffic at many brands, rewards programs have become more important as tools to incentivize consumer frequency, control the scale and precision of discounting, and compete with other chains on price.
Dive Insight:
A points-based program allows a brand to set consistent discount rates for specific items, while also giving consumers the ability to predictably stockpile rewards and redeem them for a range of items.
Dugan said the new program aimed at “continually optimizing the eCommerce experience so our most loyal members keep choosing us. By making ordering easier and more rewarding, we build stronger habits that drive sustainable growth over time.”
JJ Rewards’ redemptions range in price from 150 points for sauces to 1,700 points for toasted subs, according to the brand’s website. Dugan said that the brand’s points structure means that consumers can “enjoy the clarity of knowing exactly what they’re working towards.”
The program was designed to offer consumers flexibility and to feel more rewarding than the old surprise and delight model, which was called Freaky Fast Rewards, Dugan said. Members of the prior program will be automatically enrolled in JJ Rewards, Dugan said.
While pricing, particularly of value meals and LTOs, is the hot topic in restaurant price-competition at the moment, loyalty programs remain an important strategic asset, though filling a variety of brand needs. DoorDash recently added loyalty programs to its suite of digital restaurant tools. For brands looking to recover from traffic shortfalls — like Cracker Barrel — growing loyalty programs offer an ability to communicate directly with consumers. Chipotle added a new rewards program in September that targets college students. Starbucks, meanwhile, is trying to pull back on discounting through its loyalty program as a way to reinforce its premium brand positioning.
