Rewards program that tallies ‘visits’ and offers coffee, tea or baked goods (sorry, no Timbits) may go further than rivals
After more than a year of testing, Tim Hortons will launch its new loyalty program across Canada on Wednesday, giving the company a new tool to fend off challenges to its coffee supremacy.
While the program was announced as a way of “thanking” frequent customers, industry observers said it looked more like a proactive attempt to hold onto market share amid increased competition from the likes of McDonalds and Starbucks. “In terms of timing, we’ve had a ton on our plate in the past year in a half,” he said, pointing to restaurant renovations, and menu changes such as all-day breakfast. Tim Hortons has also been working to rehabilitate its public image after a drawn-out dispute with a group of disgruntled franchisees.Hancock said insights gleaned from the data will allow Tim Hortons to tweak its offerings to better serve its customers.
David Soberman, a marketing professor at the University of Toronto’s Rotman School of Management, said the program appeared to go beyond McDonald’s.
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