What Taco Bell and DoorDash Taught Us About Building Brand Loyalty Through Collaboration

In today’s highly competitive business landscape, building and maintaining brand loyalty is crucial for the success of any company. This was a central theme at this year’s Advertising Week New York conference, where industry leaders discussed strategies to cultivate consumer trust and loyalty. Two notable speakers, Kofi Amoo-Gottfried, CMO of DoorDash, and Dane Mathews, Chief Digital Officer of Taco Bell, shared their insights on how they have been working to earn and retain customer loyalty for their respective brands.

Understanding the Complexity of Brand Loyalty

Amoo-Gottfried kicked off the discussion by acknowledging the challenges of building brand loyalty. He emphasized that while it may be an idealistic notion to expect complete loyalty from consumers, the goal is to continuously earn more of their business. Mathews echoed this sentiment, noting that even a brand as popular as Taco Bell needs to work diligently to maintain its consumer preference in a highly competitive quick-service restaurant (QSR) industry.

Targeting Discrete Audiences for Enhanced Engagement

Both DoorDash and Taco Bell have leveraged subscription services to drive customer engagement. DoorDash introduced DashPass, which provides valuable insights into the engagement habits of its most loyal users. Similarly, Taco Bell launched the Taco Lover’s Pass to encourage higher frequency from an already loyal customer base. Mathews emphasized the importance of tailoring product innovation to specific, defined behaviors of discrete audiences. By analyzing metrics, companies can identify the most effective strategies for driving engagement and loyalty.

Measuring Loyalty: Retention, Frequency, and Beyond

DoorDash measures loyalty through various metrics, with retention and frequency playing a key role. Taco Bell, on the other hand, focuses on understanding consumer behavior beyond just purchases. Mathews highlighted the role of “Purple Knights,” Taco Bell’s devoted fans who actively promote the brand and help spread awareness of new products on social media. Loyalty goes beyond mere transactions; it encompasses how customers advocate for the brand and engage with fellow consumers.

The Role of Trust in Building Brand Loyalty

Establishing trust is central to cultivating brand loyalty. Amoo-Gottfried discussed two dimensions of trust: delivering on the promises made to customers and aligning with a business’s purpose and operations. While some companies heavily emphasize their mission and purpose, Amoo-Gottfried found that most consumers prioritize companies that consistently deliver on their core offerings. Trust is built through reliability and meeting customer expectations.

Collaborating for Mutual Growth: The Taco Bell and DoorDash Partnership

Taco Bell and DoorDash forged a partnership in November 2022, initially focusing on delivery services through the Taco Bell rewards app. However, Amoo-Gottfried noted that the relationship was initially transactional, and both companies aimed to deepen engagement and trust. An opportunity arose when Taco Bell embarked on a campaign to reclaim the phrase “Taco Tuesday,” previously trademarked by Taco John’s. The campaign aimed to liberate the phrase, allowing smaller taquerias to use it freely without legal repercussions.

Driving Engagement through Collaboration: Taco Tuesday and Delivery

The collaboration between Taco Bell and DoorDash for the “Taco Tuesday” campaign exemplifies the power of partnership in driving engagement and loyalty. Taco Bell’s objective was to celebrate and amplify the ability of local taquerias to use the phrase without fear of legal consequences. DoorDash served as the platform to reach and support these smaller establishments. The collaboration required careful planning and coordination to ensure the success of the campaign and avoid overwhelming local taco spots.

The Impact of Collaboration on Brand Identity and Industry Culture

Both Mathews and Amoo-Gottfried expressed pride in the Taco Tuesday partnership, emphasizing its significance for their respective brands. Mathews believes that collaborations like this enable the category of Mexican food and taco culture to thrive, even in a predominantly burger-dominated industry. Amoo-Gottfried echoed this sentiment, using the term “#TombstoneGoals” to describe the partnership’s lasting impact on their brands and the industry as a whole.

The Takeaway: Lessons in Building Brand Loyalty

The collaboration between Taco Bell and DoorDash offers valuable insights into building brand loyalty through strategic partnerships and innovative campaigns. Key takeaways from their experiences include:

• Recognize the complexity of brand loyalty and focus on continuously earning more customer business.
• Tailor product innovation to specific audiences and defined behaviors to drive engagement.
• Measure loyalty through metrics such as retention, frequency, and consumer advocacy.
• Build trust by consistently delivering on promises and aligning with customer expectations.
• Collaborate with partners to amplify brand messaging, drive engagement, and support industry culture.
• Embrace unconventional strategies to challenge industry norms and make a lasting impact.

In an ever-evolving business landscape, cultivating brand loyalty requires ongoing effort and adaptation. The collaboration between Taco Bell and DoorDash serves as a testament to the power of innovative partnerships in driving customer engagement and loyalty. By understanding the importance of trust, targeting discrete audiences, and embracing collaborative opportunities, companies can build lasting relationships with their customers and thrive in a competitive market.