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How Dunkin’ Donuts Is Using Mastercard’s Masterpass To Drive Loyalty Membership

Digital payment methods like Masterpass by Mastercard help us provide our guests with even more quick and convenient ways to 'run on Dunkin’,'" says Dunkin’ Donuts VP Sherrill Kaplan.

Dunkin’ Donuts is kicking off the holiday season in a partnership with Masterpass, the digital payment service by Mastercard that is designed to promote the nearly four-year-old DD Perks rewards program and mobile pay generally.

Dunkin’ Donuts now has more than 7.5 million DD Perks members. The growth of the rewards program reflects a broader influence of social media and mobile payments in that, aside from building up points for discounts, the primary benefit for customers is simply a “better experience.”

In the case of a QSR chain like Dunkin’ Donuts, that means getting customers what they want quickly with as little friction as possible when it comes to paying.

At the start of this week — and continuing through Friday, November 17 — Dunkin’ Donuts’ Perks Week program brings new and existing members who reload their Perks enrolled DD card using Masterpass will receive $5 loaded directly onto their enrolled DD Card. (Customers using auto-reload will not qualify for the $5 reload bonus.

Additionally, all DD Perks members who make a purchase through On-the-Go Mobile Ordering on Thursday, November 16 will be entered to win a $5,000 “Ultimate Shopping Spree Sweepstakes.”

Earlier this year, Dunkin’ Donuts began accepting Masterpass by Mastercard as a new digital payment option so guests can quickly and easily purchase and reload virtual Dunkin’ Donuts cards on DunkinDonuts.com and the Dunkin’ Mobile App. Using Masterpass on DunkinDonuts.com and in the Dunkin’ Mobile App to purchase or reload a DD Card ensures your morning cup of coffee is never further than a tap away.

The DD Perks Rewards Program rewards guests nationwide with points toward free Dunkin’ Donuts beverages for every visit they make at participating Dunkin’ Donuts locations. With DD Perks, guests earn five points for every dollar they spend on qualifying purchases at Dunkin’ Donuts when they pay using an enrolled DD Card, either plastic or via the Dunkin’ Mobile App.

“The program has proven to be successful, with our most recent Perks Week program in May generating higher DD Perks sales with a larger On-the-Go Mobile Ordering mix than any other week in 2017. We also saw our highest volume of mobile orders since the launch of the platform, and new user trial rates doubling during the week,” says Sherrill Kaplan, VP of Digital Marketing and Innovation for Dunkin’ Donuts U.S.

“We are excited to partner with Dunkin’ Donuts during Perks Week, presenting exclusive Masterpass offers to current and new DD Perks members,” adds Linda Kirkpatrick, Executive Vice President, Merchants and Acceptance, Mastercard. “Together with Dunkin’, we’re combining cutting edge payments technology with valuable offers to celebrate the holiday season and promote one of the most successful loyalty programs in the world.”

GeoMarketing: How does Dunkin’ Donuts see the value of Masterpass in driving loyalty?

Sherrill Kaplan: At Dunkin’ Donuts, we show appreciation for our loyal guests though technologies that make enjoying Dunkin’ coffee, food and other beverages as fast and easy as possible. Digital payment methods like Masterpass by Mastercard help us provide our guests with even more quick and convenient ways to run on Dunkin’. Combining the latest and safest digital technology with Dunkin’s DD Perks Rewards Program has been very popular with guests.

Will Masterpass be promoting the DD Perks program as well?

Yes, Mastercard is engaging with their Masterpass user base through their email channels during Perks Week.

Is this promotion focused on a particular region, or is it nationwide?

Perks Week presented by Masterpass is a national program that represents a robust and exciting opportunity to show appreciation to the millions of guests who make Dunkin’ Donuts an important part of their daily lives.

Will there be any geo-targeted advertising involved in the promotion?

In order to engage our existing DD Perks members and drive new member enrollment throughout Perks Week, we are supporting this nationally by leveraging proven digital media partners, Facebook, Instagram and Google, key publisher partners, Cheddar and Business Insider as well as owned organic channels, including Snapchat and Instagram stories. We will also use “zero-speed takeovers” on Waze to reach our on-the-go guests.

How does the company see its DD Perks program as differentiated from other loyalty/rewards programs? My sense is that most loyalty programs, even digital ones, are strictly about getting discounts for showing up and getting a card punched (even if it’s a virtual program). How does DD Perks offer value beyond the typical discount for checking in?

Our goal with DD Perks is to provide our guests with great experiences, value, and rewards to our extremely loyal and passionate fans in ways that exceed their expectations. For instance, all DD Perks members who make a purchase through On-the-Go Mobile Ordering on Thursday, November 16 will be entered to win a $5,000 Ultimate Shopping Spree Sweepstakes.

Dunkin’ Donuts’ DD Perks Rewards program has been a key strategic pillar for the brand and a differentiator in the competitive coffee space. Loyalty is the main focus for all that we do at Dunkin’ Donuts and we developed our DD Perks Rewards Program to help harness and strengthen this relationship.