Through a special arrangement, presented here for discussion is a summary of a current article from the rDialogue blog, authored by Ashley Tway.
Chipotle’s current win-back strategy seems as if it can be summed up in two words: free burritos. Following a February company-wide closure in response to a series of E. coli and norovirus outbreaks, free entrées were offered to anyone who texted “RAINCHECK” and subsequently provided their zip code. Deciding that they hadn’t given away enough free product, management then announced they would send out at least 21 million direct mail coupons for free burritos over the course of the next few months.
After announcing a quarterly loss in late April, Chipotle management seemed to realize they needed to change course and declared they would launch an elusive loyalty program. There were no details about the program, except that it would only be rolled-out for a limited time. I hope Chipotle proves my skepticism wrong and actually uses the loyalty program to deliver a relevant, targeted experience to its customers, but given the company’s response thus far, it seems like this program could be an attempt to push more free and discounted offers to drive customers into the store and calling it “loyalty.”
Don’t get me wrong, I enjoy free food as much as the next person (maybe even more) and have already redeemed both of my free burritos, so Chipotle has succeeded in getting me back into the store. But has it succeeded in winning me back as a loyal customer in the way that I once was?
Not yet.
The product is still good enough, but it’s not as “cool” as it once was. Instead of looks of jealousy among co-workers when I go to Chipotle during lunch, I detect looks of judgment and scrutiny about my meal choice. Without the promise and assurance of the very best ingredients, Chipotle – like the freshman frat star who’s decked out in brand name pastels – looks like it’s trying too hard to be something it’s not.
Chipotle has never been in the game of competing on price. And if the company continues to prioritize pushing free and discounted products, it’s going to be a lot harder to build the brand back to pre-outbreak levels of loyalty and trust.
- Loyalty: it's more than free burritos - rDialogue
- Chipotle Mexican Grill, Inc. Announces First Quarter 2016 Results - Chipotle
Photo: Chipotle