mcdonalds The company is reportedly planning to launch a digital marketing fund funded by its U.S. franchisees to modernize its marketing strategy.
The move is aimed at modernizing the fast food giant's marketing approach, increasing its competitive advantage and strengthening its position in the digital business environment, CNBC said. report Thursday (May 9), citing an internal memo.
McDonald's did not immediately respond to PYMNTS' request for comment.
The company plans to require U.S. carriers to contribute to a digital marketing fund starting next year, according to the report.
The report cited the memo and said the introduction of the Digital Marketing Fund is part of McDonald's broader efforts to expand its digital business. The company plans to invest hundreds of millions of dollars over the next few years to improve its loyalty program and introduce new ordering channels. These efforts also include web ordering, which does not require an app download.
According to the report, McDonald's loyalty program members generated more than $6 billion in systemwide sales worldwide in the first quarter.
According to the report, the company recognizes the importance of digital marketing in increasing its competitiveness. With his 34 million active digital customers in the U.S., McDonald's is leveraging its digital presence to attract and retain more customers, and by 2027 he expects to have 100 million loyalty members in his program. we aim to reach.
To fund digital marketing efforts, McDonald's encourages franchisees to allocate a portion of their existing marketing contributions, the report said. Currently, franchisees are required to spend at least 4% of their total sales on marketing. Starting next year, US carriers will contribute 1.2% of the projected amount of identified digital sales, such as transactions made through loyalty programs and delivery orders.
According to the report, the Digital Marketing Fund will not be limited to the US market. Franchisees in the UK, Canada, Australia and Germany will also contribute to the global digital marketing fund. McDonald's plans to gradually transition to this approach in remaining markets.
When announcing the goal of increasing the number of people by 100 million loyalty program McDonald's President and CEO says membership will reach 250 million by 2027 Chris Kempczinski The company also said it plans to more than double system-wide sales from these users.
“We continue to build on the brand strength, global footprint and digital ecosystem that gives McDonald's an unparalleled competitive advantage and solidifies McDonald's as one of the world's leading consumer brands. and has a clear trajectory for future growth,” Kempczinski said in a December document. .6 Statement.
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