Chipotle Almost Lost Its Brand Positioning

A few years ago, Chipotle had a problem.

Customers loved the food, but they weren’t coming back as often.
Sales were slipping, and the excitement around the brand was fading.

In one word, Chipotle was at risk of losing its market positioning.

But then, Chipotle leaned into digital transformation. They made their app the core of their business and depended on influencer marketing for viral moments.

The result?

A loyalty-driven comeback that turned occasional buyers into repeat customers.

The Big Idea:

Why Chipotle Needed a Digital Strategy

Let’s rewind a bit.

Chipotle was already a strong brand but didn't have a proper customer retention strategy. People would stop by for a burrito and nobody came back again.

(Not that the food was bad but there was no reason for them to come back)

Unlike Starbucks or McDonald’s, there was no rewards program, no personalized deals, and no direct connection with customers beyond the store visit.

On top of that, digital ordering was taking over.

Competitors like Domino’s and Starbucks had already built powerful mobile apps that made ordering easy, seamless, and rewarding.

However, Chipotle still relied on traditional in-store visits.

The challenge for the brand to overcome was clear:

• Customers needed a reason to return more often.

• Chipotle needed to make ordering easier.

• The brand needed to stay relevant in a digital-first world.

So, they took a bold step in building a digital ecosystem that made their app the center of everything.

It included a loyalty program that rewarded repeat customers and an influencer marketing push that made Chipotle go viral on social media.

So, how did they pull this off?

Behind the Magic:

Winning Back Customers Digitally

Chipotle didn’t just roll out a basic loyalty program and hope for the best.

They built a complete digital ecosystem that made ordering easier, rewarded customers, and used social media to create viral moments. They did this by:

1. Making The App the Core of the Customer Experience

Before this shift, Chipotle’s digital presence was weak. Customers had to order in-store, and there was no easy way to stay connected with the brand.

That changed when they turned their app into a full-fledged digital storefront.

With the new Chipotle app, customers could:

• Order ahead and skip the in-store line

• Earn points with every purchase

• Get personalized deals based on their order history

• Receive push notifications for discounts and new menu drops

Watch this video to see how easier the entire process became:

It wasn’t just about convenience but habit formation. Once a customer started using the app, they had a reason to keep coming back.

Every visit earned them points, every order was faster than before, and they even got reminders about new deals at the right moment.

Even more importantly, the app collected valuable customer data.

The team could now see what people ordered, how often they returned, and what promotions worked best. That helped them fine-tune their offers, which led to higher retention and increased spending per customer.

Competitors like McDonald's and Starbucks proved that the best app experience could drive sales, and Chipotle executed it precisely.

2. Creating a Loyalty Program That Drives Revenue

They designed Chipotle Rewards to keep customers engaged over time.

Many brands create loyalty programs that feel complicated or slow to pay off.

Customers lose interest when they feel like they must spend hundreds of dollars to see any benefit. Chipotle avoided this by making their program:

• Uncomplicated: Customers got 10 points per $1 spent, and at 1,250 points, they got a free entrée. The goal was clear and reachable within a few visits.

• Personalized: Customers got bonus points for trying new menu items or making purchases at certain times. That encouraged new behaviors instead of just repeating old ones.

• Gamified: Chipotle introduced Extra Points Days and surprise offers, making the experience more interactive and fun rather than just transactional.

The results were massive. Over 33 million members joined Chipotle Rewards, and loyalty members spent twice as much as non-members.

By keeping all this rewarding without being complicated, Chipotle turned casual visitors into repeat buyers who felt they were getting real value.

3. Using Influencer Marketing to Stay Relevant

Chipotle didn’t just rely on ads. They turned customers into marketers by creating viral social media moments. This strategy worked because they understood where their audience spent time (on TikTok and Instagram).

Instead of forcing traditional ads, they focused on organic, shareable content.

• The Chipotle Lid Flip Challenge

They partnered with TikTok creators to start a trend: flipping the lid of a Chipotle bowl in one smooth motion. This challenge exploded, getting millions of views in just a few weeks. While that was fun, it was free advertising, the other side.

Here’s the YouTuber, David Dobrik, doing the challenge:

Every video reminded viewers of Chipotle, and many wanted to try it themselves, which led to increased orders.

• The Boorito Halloween Campaign

Chipotle modernized an old tradition (discounted burritos on Halloween) for social media. They encouraged customers to dress up, post a video on TikTok, and get a discount. This simple tweak turned a simple promotion into a viral event.

Here’s one Burrito Halloween Costume, for example:

• Celebrity and Creator Menu Hacks

Instead of just launching new menu items, Chipotle let influencers create their signature orders. When YouTuber David Dobrik promoted his go-to order, sales spiked, and Chipotle kept using this strategy with other influencers.

By focusing on entertainment first and sales second, Chipotle was able to get millions of impressions without spending millions on ads.

4. They Used Data to Personalize Offers

Chipotle’s loyalty program wasn’t just a point system. It was a data-driven marketing engine. By tracking when and what customers ordered, Chipotle sent relevant offers.

For example:

• If you loved burritos, you might get bonus points for ordering one again.

• If you haven’t ordered in a while, you could get a special discount to bring you back.

• If you usually order on Fridays, you might get a push notification reminding you about a weekend deal.

This approach made every interaction feel personal and timely. Beyond individual offers, Chipotle also used data to refine its overall marketing strategy.

They could see which promotions worked, what times people ordered most, and even which influencers drove sales.

So, in a world where generic marketing overwhelms customers, personalization is an added advantage. And Chipotle used it masterfully.

Chipotle’s success wasn’t just about launching an app or a rewards program. It was about creating a customer experience that kept people coming back.

They made ordering easy, loyalty fun, and the brand feel fresh and exciting through influencer marketing.

The result?

• More than $3 billion in digital sales

• Loyalty members spend 2x more than non-members

• Chipotle is now one of the most digitally advanced restaurant brands

Now, let’s talk about how you can apply this to your own business.

Where It Fits:

Making It Work For You

Chipotle won because they made customers feel valued, entertained, and engaged, not just sold to. You can do the same by:

• Removing friction from the buying process

• Rewarding loyalty in meaningful ways

• Creating moments that people want to share

• Using data to make marketing feel personal

Even if you are a small brand, these principles work. Start small, test what clicks with your audience, and double down on what works!

Here’s how you can do it step by step:

Step 1: 
Build an Effortless Digital Hub (Website or App)

• Your customers should be able to buy, book, or sign up in seconds.

• Offer a frictionless experience - no long forms, no clunky checkout.

• If you sell physical or digital products, consider launching an app to make repeat purchases seamless.

Example:

If you run an online course business, create an app where students can:

• Track their progress

• Get exclusive discounts for new courses

• Receive personalized lesson recommendations

Step 2:
Create a Simple Yet Addictive Rewards Program

• Don’t overcomplicate it. Make sure people see the value within 1-3 interactions.

• Reward customers not just for spending money, but for engaging (sharing content, referrals, reviews).

• Introduce gamification - badges, surprise bonuses, and VIP perks.

Example:

If you run a SaaS business, offer:

• Loyalty points for renewing subscriptions early

• Exclusive feature access for active users

• Referrals that unlock free months

Step 3: 
Leverage Influencer-Generated Content

• Find micro-influencers in your niche who genuinely love your product.

• Get them to create challenges, how-to videos, or unboxing content.

• Run UGC contests and reward the best videos or posts.

Example:

If you have a DTC brand, send free products to small TikTok creators and challenge them to make a fun video using your product.

Step 4:
Automate Customer Re-Engagement

• Track what customers buy, watch, or engage with. Then personalize promotions.

• Use email and push notifications strategically (not spammy, but well-timed).

• Trigger offers based on inactivity. If a customer hasn’t purchased in a while, send an exclusive deal.

Example:

If you run a newsletter, segment your subscribers based on:

• Topics they engage with most

• How often do they open emails

• Their past purchases (if you sell templates/courses)

• Then, send targeted recommendations or special perks for your most engaged readers.

Step 5:
Use Social Media Challenges For Viral Engagement

• Instead of running boring “ads,” create interactive trends.

• Start a challenge related to your brand (something fun and shareable).

• Give participants discounts, free products, or shoutouts.

Example:

If you run a fitness brand, launch a "7-Day Transformation Challenge" where customers share progress using your products.

Resources For You

Templates: Struggling to create high-convertin g DTC ads? Get 60+ proven DTC ad templates used by top brands. Plug, tweak, and launch winning ads instantly.

Hunting Marketing Jobs: Check out GrowthRoles. It's a job board just for marketers. From email marketing to social media marketing, find your dream role today.

Blog:

• How to create a loyalty program: The ultimate guide

• Reward programs vs loyalty programs

• The ultimate guide to influencer marketing

YT Video: Turning $6,500 Into A $244 Million A Year Business

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