Marketing
3 Sept 2024
Mohammadreza Javanian
Talon.One loyalty expert
In our new blog series, Loyalty Leaders, we look under the hood of some of the world’s best-loved loyalty programs and promotions.
Each article focuses on how leading brands are using incentives to drive revenue and build long-term customer relationships, with practical takeaways for companies looking to do the same.
Points, perks, and the perfect chicken sandwich: for our second installment of Loyalty Leaders, we’re looking at how Chick-fil-A has built a cult following with its Chick-fil-A One loyalty program.
S. Truett Cathy opened the first Chick-fil-A restaurant in 1967 in Atlanta, Georgia. Over the years, the brand has placed trust and loyalty at the center of its business model, with Cathy saying “We are building success one loyal customer at a time, and we make sure that everyone who comes in leaves with the intention of coming back.”
Originally launched in 2016, Chick-fil-A One has grown its loyalty membership to over 50 million. The program underscores the company's commitment to customer care and building loyalty - and according to the Market Force QSR Study 2024, Chick-fil-A now counts the second-most loyal customers in the fast food space.
Chick-fil-A ranked second on Market Force's 2024 loyalty index report for the QSR industry in the U.S.
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Chick-fil-A has long been renowned for its customer-centric culture and high-quality service. But what sets the brand apart is its ability to transform these elements into a dynamic and engaging loyalty program. The Chick-fil-A One program, with its tiered rewards system and personalized experiences, stands out as a model for building customer loyalty through meaningful engagement.
Let’s dive into Chick-fil-A's loyalty playbook and uncover key insights for brands aiming to create deeper customer connections.
Chick-fil-A One features a 4-tier, airline-like status system —ranging from Member to Silver, Red, and Signature statuses—each offering progressively more exclusive benefits:
Member: Points awarded on purchases
Silver: Use your points to gift rewards to family and friends
Red: Take a free Chick-fil-A Backstage Tour (with up to 5 guests) at the Chick-fil-A Home Office
Signature: Unlock rewards exclusive to Signature Members
The higher the tier, the more points members are able to redeem: Member and Silver tier customers earn 10 and 11 points per dollar, respectively, while Signature members enjoy 13 points for every dollar spent.
This structure encourages customers to visit more frequently and spend more to unlock higher-tier rewards. It’s a strategy that not only drives immediate sales but also creates long-term loyalty by providing ongoing incentives.
Chick-fil-A One has four tiers with different benefits.
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Key takeaway: Build loyalty through tiered rewards
Implement a tiered rewards structure that offers new and exciting benefits the more customers engage with your brand. This encourages repeat business and gives customers a sense of achievement and exclusivity.
Chick-fil-A leverages customer data to deliver personalized experiences and rewards throughout the customer journey. From tailored menu suggestions and customizable meal options to exclusive promotions based on past purchases, the brand ensures that each interaction feels bespoke. The Chick-fil-A One app is central to the brand’s personalization strategy, and uses AI and machine learning to enhance the customer experience.
A standout example of personalization and geofencing is their "3 Threez in the 3rd" campaign. During Sacramento Kings games, fans were notified via app push notification that they’d won a free Chick-fil-A Chicken Sandwich whenever the team made three three-pointers in the third quarter. To benefit, fans simply had to download the Chick-fil-A app ahead of time, turn on location services, and be at the game to receive their reward.
Chick-fil-A uses its app to personalize rewards.
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Key takeaway: Use customer interactions to drive personalization
Research shows that highly personalized shopping experiences lead customers to be 110% more likely to add extra items to their carts and 40% more likely to exceed their planned spending. Your app is a powerful tool to analyze customer data and deliver personalized experiences. This enhances satisfaction and increases the likelihood of repeat purchases and loyalty.
Chick-fil-A’s loyalty program excels by zeroing in on what customers value most: exclusive discounts, special offers, and complimentary products.
Data from YouGov Profiles indicates that 60% of Chick-fil-A customers join loyalty programs primarily for in-store and online discounts, compared to 47% of the broader U.S. population. Additionally, 37% of Chick-fil-A customers are drawn by the prospect of free products, a significantly higher percentage than the 27% of the general population who share this motivation.
Chick-fil-A’s rewards structure reflects these customer demands. Redemption options begin at just 200 points, allowing members to spend points on almost the entire menu. Unlike many loyalty programs, Chick-fil-A points don’t expire, encouraging regular engagement without the fear of losing earned rewards.
Chick-fil-A blends exclusive rewards with simple redemption process.
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Key takeaway: Align rewards with customer preferences
By actively listening to your customers and fine-tuning your rewards strategy, you can keep your loyalty program engaging and relevant. Focus on offering practical benefits—like discounts, exclusive offers, and free products—that directly appeal to your customer base. Ensure flexibility and ease of access in your program by allowing low-point redemption options and —if feasible—avoiding expiration of rewards.
Chick-fil-A understands that loyalty isn’t just about transactions—it's about cultivating relationships and trust. The brand actively connects with its customers through various community efforts, like the Inspiration Awards Program, charitable initiatives such as the Shared Table Program, and surprise-and-delight moments, including free food giveaways or limited-time offers. These initiatives not only keep customers engaged but also strengthen their emotional connection to the brand.
"We are building success one loyal customer at a time, and we make sure that everyone who comes in leaves with the intention of coming back."
S. Truett Cathy
Founder at Chick-fil-A
Key takeaway: Focus on building emotional connections
Go beyond transactional loyalty by creating opportunities for customers to engage with your brand in meaningful ways. Research shows that 70% of emotionally engaged consumers spend up to two times or more on brands they are loyal to. Customers with strong emotional attachment to a brand are also less likely to be swayed by competitors offering better deals.
Chick-fil-A interacts with its loyalty members based on trust and transparency.
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Chick-fil-A’s loyalty program stands out by keeping things simple yet effective, focusing on straightforward rewards that matter to customers. The program’s appeal lies in its consistent value, complemented by surprise and delight moments—like special perks and unique experiences that keep customers coming back for more.
By focusing on both the emotional and transactional aspects of loyalty, Chick-fil-A One not only drives sales but also cultivates a devoted customer base that advocates for the brand. Brand loyalty is paying off for the chain: according to a QSR Magazine's 2023 report, Chick-fil-A generated more revenue per restaurant than any other fast-food chain in the U.S.
For more insights on building a world-class loyalty program, download our report, “Best in class loyalty programs from around the world.”
You can also check out the first installment of our Loyalty Leaders series, “Target’s Black Friday playbook,” where we analyzed Target’s promotions tactics during the holiday shopping season.
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