- Chipotle is adding new redemption options for rewards program members.
- The chain is also giving away a Tesla to the winner of an inn-app game.
- Rewards programs are becoming more important than ever for fast food chains.
- See more stories on Insider’s business page.
Chipotle just introduced the biggest update to its rewards program since it launched in 2019. The chain will also give away a Tesla 3 to the winner of a new racing game.
The new rewards system will give customers more options for redeeming the point that they’ve earned. Every dollar spent by rewards members equals ten points, which can be put towards over 15 different rewards options. A side of guacamole goes for 400 points, or $40 spent at Chipotle.
Members can also redeem points for Chipotle merchandise, which includes shirts, keychains, and flip flops. Or, members can choose to use their points towards a donation to The Farmlink Project, the National Urban League, or National Young Farmers Coalition. Every 485 points equal $1 to one of the organizations.
While revamping the rewards system, Chipotle also introduced a game, Chipotle Race to Rewards Exchange. Members play the game to compete against each other for the chance to win a 2021 Tesla Model 3.
To play, members must sign in or create a rewards account. Then, choose from an electric car, electric bike, or electric skateboard. Players can earn 10 points per second racing while avoiding obstacles, which reset points back to 0. The game will only last for 48 hours, going live at 9 am PT on June 23 through 9 am on June 25.
Rewards programs have become nearly essential for fast food chains to attract and keep customers, with Chipotle being one of the leaders. Chipotle’s in-app rewards program has been a huge success, reaching nearly 23 million members as of publication.
Popeyes just launched a program that offers some freebies just for signing up. Starbucks has a popular app with customers so loyal that they sparked a backlash when the chain changed how rewards were calculated.
McDonald’s is also rolling out a loyalty program this year that will entice customers with free sandwiches.
Rewards programs seem to be more important than ever as they incentivize return visits and give companies valuable customer data. “Retention is much more cost-effective than acquisition,” Shyam Rao, co-founder and CEO of customer loyalty platform Punchh, told Insider.