Subscription programs offer incentives to engage with brands digitally, which may generate higher checks and provide companies with more customer data. They also differentiate brands from competitors. If a customer is a frequent coffee drinker, for example, a subscription service will likely offer a better value proposition and a more seamless experience than a traditional loyalty program.
Taco Bell’s subscription program has generated new loyalty members and traffic, the company told Restaurant Dive. Since the subscription service runs through Taco Bell’s loyalty program in its app, it is building on the brand’s digital growth. Digital sales now account for about 20% of the company’s mix, according to parent company Yum Brand’s recent Q4 earnings report, and the goal is eventually to get to 50%.
