Dunkin’ doubles down on loyalty with exclusive latte

Dive Brief:

Dunkin’ has launched a signature latte available only to Dunkin’ rewards members, the company announced Wednesday. The Brownie Batter Signature Latte is an iced drink inspired by the chain’s seasonal Brownie Batter Donut.
The latte is the chain’s first-ever beverage exclusive to loyalty members, and is only available through the Dunkin’ app, according to the press release.
Dunkin’ has been toying with its loyalty program over the last few months. The chain has altered its points structure to lower coffee discount rates, added food options to its redemption scheme and created a tiered structure for high-frequency rewards guests.

Dive Insight:

Given the controversy generated by Dunkin’s decision to lower its rewards program’s coffee discount rates in October, the move to add a beverage exclusive to the program could strengthen member loyalty. By tying it in with a popular, seasonal doughnut, the drink may draw some additional customer signups for Dunkin’ Rewards. Dunkin’ noted the drink will be available to members who sign up after the promotion begins.

It’s not clear if the drink is available as a permanent menu addition or an LTO. The announcement is part of a release promoting the chain’s Valentine’s Day offerings, including discounts on half-dozen doughnut boxes. Dunkin’ did not immediately respond to a request for comment.

Loyalty programs are an increasingly important part of restaurant brand strategy, as they offer a way to collect first-party customer data; deepen engagement; target specific demographics with LTOs, promotions and discounts; and heighten customer perceptions of value just as price grows increasingly important to consumers.

Dunkin’s loyalty shakeup in October alienated some coffee drinkers, but there’s little evidence it did any lasting damage to the brand. While the exclusive drink is a new tack for the chain, it fits into a coherent strategy to increase the variety of options available to loyalty members, draw fresh members in and keep extant members engaged —all while controlling discount rates.