Tags: subway | loyalty | program | reverse | sales | slump

Subway Turns to $2-Off Loyalty Program to Reverse Sales Slump

Image: Subway Turns to $2-Off Loyalty Program to Reverse Sales Slump
(Jonathan Weiss/Dreamstime)

Thursday, 22 February 2018 10:34 AM

Subway Restaurants’ is offering a new incentive to boost sales: $2 discounts through a revamped loyalty program.

The sandwich chain will let diners use their loyalty rewards on any menu items, lifting restrictions under the current program.

The new system, which will expand to 28,500 U.S. and Canadian locations next month, will offer frequent customers freebies such as cookies and chips and let them use their balance via a mobile app and other channels.

“It made sense for us to revisit our loyalty program,” Chief Digital Officer Carissa Ganelli said in an interview. “We’re putting the customer first. We have to be everywhere they are and engage with them how they want to engage.”

The Milford, Connecticut-based chain is fighting to reverse a U.S. slump: Sales fell 4 percent last year after a 1.7 percent drop in 2016, according to industry researcher Technomic. The brand’s cachet has worn off as rivals entice customers with sleek store designs and expanded healthy options. Other competitors have deepened discounts and expanded delivery.

Closely held Subway is increasingly turning to technology to reverse the decline. Last year, it introduced a new mobile-phone application, and it’s adding touch-screen kiosks at restaurants. The new rewards program will also represent a significant expansion, since it’s currently only available at about one-third of North American locations.

With the revamp, customers can earn $4, roughly enough for a 6-inch sub and drink, after spending $100. Along the way, they will also receive “surprise” rewards such as cookies, chips and possibly sandwiches, Ganelli said. Before, they needed to spend $50 to get a 6-inch sandwich.

The chain said its millions of existing rewards members will automatically be enrolled in the updated program. Ganelli predicted the changes will entice loyal Subway eaters to visit more frequently.

© Copyright 2018 Bloomberg News. All rights reserved.

   
1Like our page
2Share
StreetTalk
Subway Restaurants’ is offering a new incentive to boost sales: $2 discounts through a revamped loyalty program.
subway, loyalty, program, reverse, sales, slump
295
2018-34-22
Thursday, 22 February 2018 10:34 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved