Loyalty Program has immediate impact on share prices: Dunkin’ Donuts Case

Dunkin’ Brands, which is Dunkin’ Donuts mother company, experienced a nearly 2 percent share price increase August 22 after it revealed that its DD Perks loyalty program has reached the milestone of 5 million members. All these clients have signed up for DD Perks, which is a classic loyalty program rewarding customers for purchases and allowing them privileges to order ahead and bypass lines.

“The number of DD Perks members has more than doubled in less than 2 years, which has surpassed all of our goals,” said Sherrill Kaplan, VP of digital marketing and innovation for Dunkin’ Donuts U.S. As a response to this, the shares of Dunkin’ Brands, the parent company of both Dunkin’ Donuts and Baskin-Robbins, hit their highest level in months. This bump in the loyalty program participation obviously provides investors hope for better results in the second half of 2016.

For VEMT, it’s another case that proves that offering a loyalty program add significant value to your company. We’re glad to see another case in which shareholders recognize that very explicitly.