How Duck Donuts Used SMS & Mobile Wallet to Drive Engagement, Loyalty and Foot Traffic

Duck Donuts had a loyalty app to drive mobile engagement – but their app provider went out of business, forcing a new idea. They turned to Vibes and the combination of SMS + Mobile Wallet to launch an innovative SMS rewards program called QuackChat - and they aren’t looking back.

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Key Results

The Results

Since the launch of QuackChat in January 2024, more than 100,000 guests have subscribed, and the brand is seeing a 13.4% click through rate on its offers and promotions. This number is climbing rapidly, and the company has already exceeded its goal to get to at least 100,000 subscribers by the end of 2024.  

Currently, the Vibes-powered QuackChat rewards program helps to promote new items, like a new cotton candy doughnut, and offers promos on days like National Cold Brew Day.

This SMS program is just one part in the digital evolution Duck Donuts is undergoing, and, due to the success of the SMS + Mobile Wallet combination, another loyalty app is not part of the plan right now. “People are talking about how they don't want yet another app on their phone” CEO Hamm said in a Nation’s Restaurant News interview. Hamm said they want to cut down on the channel fragmentation, and instead create a unified experience for customers, whether they just wander into a Duck Donuts shop or place an order based on the text message deal they received the other day. The Vibes mobile engagement platform has become a crucial and revenue-driving piece of this strategy to drive foot traffic and heighten brand loyalty.  

The Challenge

Duck Donuts opened its first locations in 2007 in the beach resort towns of Duck and Kitty Hawk, North Carolina with the intention to create an oasis for vacationers to enjoy warm, delicious, made-to-order donuts. Headquartered in Mechanicsburg, Pennsylvania, the company began franchising in 2013, and prides itself on sprinkling happiness to its guests through its unique in-store experience, exceptional guest service and a “duckzillion” donut combinations.

 

As one of the fastest-growing donut franchise companies, Duck Donuts has over 150 locally owned and operated shops across 25 states and multiple international locations worldwide.  

The aim of any QSR or food franchise is to build a loyal guest base that keeps coming back. Duck Donuts originally started out by having a loyalty app, but the provider for the company’s app went out of business, which then “forced their hand” to move on to a new idea. Their aim was to have a strong touchpoint with their customers to complement the email program they already had running, recognizing that there was an “engagement gap” between high-reach, low-engagement email marketing and low-reach, high-engagement mobile app marketing. They turned to Vibes and our intelligent mobile engagement platform for help.

The Solution

“Of course, as much as I would love to think that people should be eating donuts once a week, we don't really have that high of a frequency, but we want to stay top of mind,” Duck Donuts CEO Betsy Hamm said in a recent interview at the Restaurant Leadership Conference. “We want to be able to engage with our customers, and 98% of text messages are read, so it just seemed like a really great opportunity to have another touchpoint with our customers.”

To that end, and with the help of Vibes and our high-touch launch and service team, Duck Donuts launched QuackChat, an innovative SMS rewards program designed to enhance engagement and communication with its valued guests.

Through this program, Duck Donuts guests can opt-in to receive alerts about new flavors, special promotions, and delightful surprises, while also gaining access to offers that can be effortlessly saved to their mobile wallet for easy redemption. Upon registering for QuackChat, guests receive an irresistible welcome gift: a complimentary donut of their choice with purchase, as a token of appreciation for joining the Duck Donuts community. Available on all mobile carriers, guests can text DOZEN to 50282 to join. A welcome offer for a free donut is then sent to each new subscriber the following day and offers can be saved directly to the user’s Mobile Wallet for convenient use during register or kiosk checkout.

The Results

Since the launch of QuackChat in January 2024, more than 100,000 guests have subscribed, and the brand is seeing a 13.4% click through rate on its offers and promotions. This number is climbing rapidly, and the company has already exceeded its goal to get to at least 100,000 subscribers by the end of 2024.  

Currently, the Vibes-powered QuackChat rewards program helps to promote new items, like a new cotton candy doughnut, and offers promos on days like National Cold Brew Day.

This SMS program is just one part in the digital evolution Duck Donuts is undergoing, and, due to the success of the SMS + Mobile Wallet combination, another loyalty app is not part of the plan right now. “People are talking about how they don't want yet another app on their phone” CEO Hamm said in a Nation’s Restaurant News interview. Hamm said they want to cut down on the channel fragmentation, and instead create a unified experience for customers, whether they just wander into a Duck Donuts shop or place an order based on the text message deal they received the other day. The Vibes mobile engagement platform has become a crucial and revenue-driving piece of this strategy to drive foot traffic and heighten brand loyalty.  

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