Marketing

Subway is making a big change to its loyalty program

The company is shifting to a tiered loyalty program, called Subway MVP Rewards, based on level of spending.
Subway MVP Rewards
Subway is creating a new tiered loyalty program called MVP Rewards. | Photo courtesy of Subway.

Subway is making a big change to its loyalty program, so much that it’s even changing the name.

The Miami-based sandwich giant on Thursday revealed a tiered rewards program, now called Subway MVP Rewards, that will give customers more rewards based on their level of spending. The 30 million members of the chain’s soon-to-be extinct Subway MyWay Rewards will be converted to the new system, which kicks off on Saturday.

The company promises to make it easier for customers to sign up and earn points. It also promises “exclusive” benefits for certain members.

The chain created the program using input from its customers. The tiers are called “Pro,” “Captain” and “All Star.”

Pro: Customers who spend less than $200 a year at Subway are part of the introductory tier. Customers get 250 points for signing up and 10 points for every $1 spent, with a 5% bonus for mobile orders. There are member-only deals, bonus point days and earnings challenges and rewards for birthdays and anniversaries.

Captain: This tier is for customers who spend $200 or more. They get the same benefits as pro, but earn 10% more points per $1 spent, exclusive bonus point days and access to the “Subway Swag Shop.”

All Star: This tier is for customers who spend $400 or more. They get free chips on Fridays, 20% more points per $1 spent and access to exclusive events.

Loyalty programs have become key marketing strategies for fast-food chains, giving the one-to-one marketing opportunities and more data on their customer behavior. Loyalty members tend to come in more frequently and spend more when they do.

Chains have also found that they can use these programs to target customers with offers that improve traffic, rather than all-encompassing value offers.

Restaurant chains have also been changing their programs, adding tiers and more exclusive benefits in ways that make them look more like programs seen at hotels, airlines and other industries.

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