At this year’s Advertising Week New York conference, DoorDash CMO Kofi Amoo-Gottfried and Taco Bell Chief Digital Officer Dane Mathews discussed brand loyalty in today’s competitive landscape.
The execs explained that trust is central to establishing and maintaining brand loyalty. Most importantly, consumers must be able to trust that the brand will do what they expect them to do (i.e. make them a great taco and deliver it warm and on-time).
“Do I care about your highfalutin purpose? Turns out people don’t — they care about me doing the thing they hired me for,” Amoo-Gottfried said, according to MarketingDive.
The two brands have collaborated formally since the end of 2022 with Taco Bell adding in-app DoorDash delivery. Both companies built subscription loyalty programs to drive engagement: DashPass and Taco Lover’s Pass.
“Product innovation needs to be really tied, not to broad-based audiences, but to discrete audiences that you’re trying to grow specific, defined behaviors out of,” Mathews said. “The metrics show where and how to do that.”
According to Deloitte’s 2023 consumer loyalty trends report, consumers are most likely to pay for programs that offer exclusive discounts, promotions, or special pricing. The report finds that “53 percent of consumers surveyed pay for a loyalty program, up from 32 percent in 2022 and 17 percent in 2021.”
Despite that, however, loyalty programs are not inducing higher engagement or spend.
Other news
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- Only 22 percent of CMOs believe their roles are well-defined and understood by others in the C-suite.
- eMarketer projects that TikTok social buyers will continue to increase. Learn more about how TikTok is promoting in-app shopping here.
- Here’s a data poisoning tool aimed at helping artists fight back against AI models.
That’s all for this week’s Marketing Roundup. Check back in next Monday for more news. And subscribe to our newsletter below for additional updates.
