Sweetgreen launches digital feature to reward customers for meeting goals

Dive Brief:

Sweetgreen on Monday added Rewards and Challenges, a digital experience within its app and website that offers customers rewards for meeting challenges the company sets, the company said in a press release.
The feature debuts with a four-week campaign that will run through July 24 called “Summer of Rewards,” which will offer weekly challenges. Following this campaign, the feature will remain available for customers on the app or website.
Sweetgreen started looking into a loyalty program with the pilot of its Sweetpass subscription in January. The subscription gave customers a $3 discount for meals during that month when they paid $10 for the service.

Dive Insight:

With Sweetgreen’s digital sales providing 66% of the company’s Q1 2022 revenue, the company is using this pilot to drive additional customer frequency and restaurant volume by adding more value and engagement to its digital channel, Sweetgreen said.

For the launch of its summer campaign, it will offer customers 50% off their next bowl or plate after purchasing a bowl or plate. Future challenges will include allow customers to spend $20 to receive $4 off the next purchase, add a side item to receive a free beverage, buy a personalized online bowl to receive 50% off their next bowl or plate or order delivery to receive free delivery on the next order.

The rewards and challenges feature is part of the company’s strategy to create a loyalty program that focuses on personal preferences and values, which is why it has been testing different features this year, Sweetgreen co-founder and CEO Jonathan Neman said during the company’s Q1 2022 earnings call.

The company used its Sweetpass pilot to understand customer preferences and to see if such an offering would impact frequency, Neman said. With this year being more of a test year, Neman anticipates Sweetgeen will launch a full-blown loyalty program in 2023 that is likely to have elements of a subscription and promotional offers.

“We think this loyalty program will not only be a really big sales driver for us, but it will be something that consumers really love and will continue to drive our digital penetration and leadership,” he said.

The company has also been testing other ways to reach more customers digitally, including its mobile pickup lane, dubbed Sweetlane, and a pickup-only location in Washington, D.C., for orders placed on its app, website or third-party platforms.