McDonald’s global digital marketing and ordering tools are slated for an upgrade.
The fast food giant is planning to invest “hundreds of millions of dollars” in its digital marketing over the next few years, including on its app, customer relationship management platform and website. McDonald’s plans to pull dollars away from marketing channels with lower return, but did not specify what channels, according to memos sent to employees and franchisees today that were viewed by Ad Age.
The investment comes as McDonald’s works to keep driving growth through digital sales while boosting its loyalty programs to help it keep reaching consumers who are increasingly watching their spending amid stubborn food inflation. McDonald’s recently reported first-quarter results that missed expectations, partly due to a pullback by low-income consumers.
McDonald’s spent $648 million on U.S. measured media in 2023, according to Vivvix, including paid social data from Pathmatics. That was up slightly from the $643 million spent in 2022, but far below the $752 million the Golden Arches spent in 2021. In 2023, 50% of McDonald’s measured media spending in the U.S. went to TV, while 33% was spent on digital.
Plans include investing in channels that will allow customers to order online without having to download the McDonald’s app, increasing ways that customers can use loyalty points and enhancing personalized order recommendations, according to a global memo sent by Global Chief Marketing Officer Morgan Flatley, who also oversees new business ventures.
“We have already begun to evolve our marketing approach in many markets by balancing our traditional mass media spend with investment in digital marketing capabilities that personalize the customer experience,” Flatley stated.
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“Our goal is to know our customers better than anyone else, leveraging data to deliver the right message, at the right time, to the right customer – supporting repeat visits,” stated a memo sent to U.S. partners from Tariq Hassan, senior VP and U.S. chief marketing and customer experience officer; and Whitney McGinnis, senior VP and chief information officer.
The moves come as McDonald’s nears the end of a global CRM agency review. In a request for information document sent to agencies obtained by Ad Age, McDonald’s described its current CRM system as providing “mostly transactional value to customers across our markets by surfacing communications about offers and deals.” Going forward, the chain wants a system “giving customers what they want and need in a non-intrusive and privacy safe manner, and bringing to life our key brand moments in a way that is relevant for each customer,” according to the document.
The news was reported earlier by Restaurant Business.
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