Dairy Queen, one of the leading quick-service restaurant chains, has continually evolved its marketing strategy to stay ahead in the highly competitive food industry. In this case study, we delve into Dairy Queen’s marketing approach for 2024, exploring its efforts to enhance branding, digital experiences, employee and franchise owner experience, and global presence.
Key Takeaways:
- Dairy Queen witnessed a remarkable 35% year-over-year increase in loyalty accounts, reaching a staggering 2.1 million accounts in 2022 compared to the previous year.
- The purchase conversion rate for Dairy Queen experienced a significant surge of 46% from Q1 2022 to Q1 2023, pointing to the effectiveness of their digital products and eCommerce capabilities.
- Organic search terms for the Dairy Queen brand grew by an impressive 5 million from Q1 2022 to Q1 2023, further expanding its online visibility.
- The Dairy Queen mobile app achieved an impressive 99.9% mobile availability and performance, establishing a seamless and reliable experience for users since its launch in March 2022.
- With a strategic partnership with WillowTree, Dairy Queen minimized software fragmentation, resulting in unified end-to-end consumer experiences and higher conversion rates.
Over the years, Dairy Queen has prioritized its branding approach, employing innovative promotions and revamping digital experiences. By simplifying the customer journey path through the redesigned in-app ordering experience, Dairy Queen has improved user experience, potentially leading to increased sales. Additionally, continuous enhancements to the mobile app and its shortened development cycle have allowed Dairy Queen to release new features faster, contributing to improved customer loyalty and satisfaction.
Recognizing the importance of customer loyalty, Dairy Queen introduced the DQ Rewards program, offering special benefits and personalized recommendations to its fans. The program includes exclusive offers, discounts, free treats on birthdays, and priority access to menu items and promotions.
Moreover, Dairy Queen’s global expansion has been instrumental in its revenue growth. With 450 new locations opened outside of the U.S., including 300 in China, Dairy Queen’s international presence has significantly contributed to its success. The company’s revenue reached an impressive $6.4 billion, showcasing a 36% increase since 2019, attributed in large part to its international growth.
Throughout this case study, we will explore Dairy Queen’s marketing strategy in-depth, shedding light on the company’s commitment to innovation, customer satisfaction, and global expansion.
Understanding Dairy Queen’s Branding Approach
As a fast-food giant, Dairy Queen has established a strong brand presence, particularly in non-urban areas. The company’s branding approach is a key factor in its success and market recognition. Dairy Queen’s strategic focus on branding, product innovation, advertising, and promotions has allowed it to create a memorable and unique brand experience for its customers.
From its humble beginnings in 1940, when John Fremont “Grandpa” McCullough and his son Alex founded the first Dairy Queen store in Joliet, Illinois, the brand has evolved and expanded globally. Today, Dairy Queen has over 7,000 locations in more than 20 countries.
To attract specific target groups, Dairy Queen has devised branding strategies that cater to different demographics. Their primary focus is on Generation X parents, aged 34 to 44 years old, who grew up with the brand and now introduce it to their own children.
In addition to targeting Generation X parents, Dairy Queen also aims to attract millennial customers, with a particular focus on females, through their Hardest Working Happy Hour campaign. This campaign positions Dairy Queen as a fun and indulgent treat destination for millennials looking to take a break and enjoy delicious treats.
To further enhance their brand experience, Dairy Queen continuously introduces new products and treats. In 2024, they launched the Stackburger line, offering five new burger varieties and generating record sales in 2021. They also introduced innovative treats such as the Peanut Butter Cookie Dough Party Blizzard and the Picnic Peach Cobbler Blizzard.
Dairy Queen understands the importance of nostalgia in their branding. They offer treats like the Nutter Butter Shake, appealing to customers who crave a taste of their childhood memories. Additionally, Dairy Queen provides special seasonal desserts like the Confetti Cake Dipped Cone, creating a sense of excitement and anticipation among their loyal customers.
Recognizing the power of brand consistency, Dairy Queen partnered with WillowTree to revamp its digital products and eCommerce capabilities. This collaboration resulted in significant improvements in loyalty accounts, purchase conversion rates, organic search terms, and mobile app availability and performance.
Through its branding initiatives, Dairy Queen has solidified its position as a beloved and recognizable brand. With innovative products, strategic targeting, and a commitment to creating memorable experiences, Dairy Queen continues to delight customers worldwide.
Modernizing Digital Experiences
As part of Dairy Queen’s commitment to providing exceptional customer experiences, the brand recognized the need to modernize its digital platforms. To achieve this goal, Dairy Queen partnered with WillowTree, a leading digital agency specializing in creating user-centric experiences.
In collaboration with WillowTree, Dairy Queen focused on revamping its main website, DairyQueen.com, and its DQ Cakes microsite. The aim was to enhance branding, security, accessibility, and overall site performance and speed.
With cross-disciplinary insights from research, design, engineering, analytics, SEO, and growth marketing teams, WillowTree implemented several key improvements to drive better digital experiences for Dairy Queen’s customers.
The redesigned DairyQueen.com now offers a seamless and intuitive user interface, making it easier for customers to navigate and find information about their favorite treats. The website’s enhanced security measures ensure that customer data is protected, giving peace of mind to Dairy Queen’s loyal fans.
Additionally, the redesign focused on optimizing the website’s performance and speed. By prioritizing these aspects, Dairy Queen ensures that customers have a smooth and efficient online experience, further enhancing their satisfaction with the brand.
DQ Cakes Microsite: A Digital Delight
One of the key digital touchpoints for Dairy Queen is the DQ Cakes microsite. The collaboration with WillowTree resulted in a visually appealing and user-friendly platform that showcases Dairy Queen’s mouthwatering cake options.
Through engaging imagery, easy-to-use interfaces, and detailed product descriptions, the DQ Cakes microsite invites customers to explore and customize their dream cake for any occasion. The streamlined online ordering process allows for hassle-free cake customization and secure digital payments.
Thanks to the modernization efforts, Dairy Queen has witnessed a significant increase in online cake orders. In fact, the microsite now handles approximately 40% of all cake orders placed, reflecting the growing preference for convenient online purchasing.
Results and Impact
The collaboration between Dairy Queen and WillowTree has yielded impressive results. The modernization of DairyQueen.com and the DQ Cakes microsite has led to:
- Improved order conversion rates
- Increase in click-through rates
- Higher Google search rankings
- Enhanced site performance and speed
These outcomes demonstrate Dairy Queen’s commitment to leveraging technology and design to elevate the digital experiences of its customers. By partnering with WillowTree, Dairy Queen is successfully staying ahead of digital trends and ensuring that every interaction with the brand is seamless, enjoyable, and memorable.
| Statistic | Performance |
|---|---|
| Order conversion rates | Increased |
| Click-through rates | Improved |
| Google search rankings | Higher |
| Site performance and speed | Enhanced |
Enhancing Employee and Franchise Owner Experience
As part of its commitment to continuous improvement, Dairy Queen has focused on enhancing the experience for its ADQ employees and franchise owners. Recognizing the importance of a positive work environment, Dairy Queen has implemented various initiatives to ensure that its employees and franchise owners feel valued, supported, and motivated.
One key aspect of this enhancement is the implementation of a new content management system (CMS) in collaboration with WillowTree. This CMS allows for more efficient creation of new content, including the development of product-specific pages with branded photography and promotional landing pages. This streamlined process not only saves time but also ensures a consistent and engaging online presence for Dairy Queen.
Dairy Queen also prioritizes employee experience by closely monitoring day-to-day business key performance indicators. By comparing sales volume at specific stores with customer complaints and comments over time, Dairy Queen can identify trends and make informed decisions to address any issues promptly. This data-driven approach helps create an environment where employees can thrive and provide exceptional service to customers.
Furthermore, Dairy Queen values feedback from customers and actively seeks their input in product development decisions. Customer comments play a critical role in shaping Dairy Queen’s offerings, such as the reintroduction of the popular “Candy Cane Chill Blizzard” based on customer feedback about the “Reindeer Bites” flavor. By incorporating customer preferences and suggestions, Dairy Queen ensures that its menu remains relevant and appealing.
The customer service team at Dairy Queen works closely with franchise owners to address complaints and resolve issues in a timely manner. They aim to provide effective solutions within a couple of days or even hours, minimizing any disruption to the customer experience. In cases where customer concerns are voiced publicly on social media, the customer service team proactively reaches out to unhappy customers and directs them to the website contact form for prompt resolution.
With a proactive customer service system in place, Dairy Queen aims to identify potential issues before they escalate. This proactive approach not only helps maintain customer satisfaction but also provides valuable guidance to franchise owners on effectively handling complaints. By addressing issues promptly and effectively, Dairy Queen ensures a positive experience for both customers and franchise owners.
By enhancing the employee and franchise owner experience, Dairy Queen fosters a supportive and productive work environment. This, in turn, translates into better service, improved customer satisfaction, and overall success for the brand.
Streamlining Development Processes
WillowTree, a leading mobile app development agency, played a significant role in streamlining Dairy Queen’s development processes. By leveraging their expertise in mobile app development, WillowTree helped Dairy Queen reduce their development release cycle from three months to just two weeks. This accelerated timeline allowed Dairy Queen to quickly deploy new features, updates, and promotions to better serve their customers.
One of the key advancements in Dairy Queen’s development process was the introduction of a personalized mobile app. This app not only provided users with a seamless interface to explore Dairy Queen’s offerings but also enabled the brand to deliver targeted and personalized promotions to its customers. By leveraging in-app data and customer preferences, Dairy Queen could create a more personalized experience for its users, ultimately driving customer loyalty and deeper engagement with the brand.
The app’s weekly and monthly promotions implemented personalized recommendations based on user preferences, allowing Dairy Queen to cater to individual tastes and preferences. For example, a user who frequently orders Blizzard Treats may receive exclusive discounts and offers on their favorite treat. This personalized approach helped Dairy Queen strengthen its relationship with customers and encourage repeat visits.
By partnering with a trusted mobile app development agency, Dairy Queen was able to navigate the complexities of mobile app development and deliver a user-friendly and personalized app experience. The collaboration between Dairy Queen and WillowTree highlights the importance of leveraging technology to enhance the customer experience in the fast-food industry.
Driving Customer Loyalty
Dairy Queen, with its rich history and iconic menu items like the Blizzard Treat, has managed to cultivate a strong and loyal customer base over the years. To further strengthen this bond and encourage repeat visits, Dairy Queen has implemented several strategies focusing on customer loyalty, engagement, and fan experience.
DQ Rewards: Fueling Customer Loyalty
A key initiative in driving customer loyalty is the introduction of the DQ Rewards program. This innovative loyalty and engagement program aims to reward loyal customers and create a personalized experience across channels and customer segments. Through the program, customers can earn points with every purchase, unlocking exclusive rewards and offers.
By implementing a loyalty program like DQ Rewards, Dairy Queen can not only retain existing customers but also attract new ones through the promise of special benefits and incentives.
Statistics show that implementing a loyalty program can significantly boost customer retention and increase profitability. In fact, training employees to greet repeat customers by name can increase customer loyalty, leading to a 10% increase in repeat visits.
Fan Engagement: Connecting with the Dairy Queen Community
Dairy Queen values its customers and actively engages with them through various initiatives, fostering a sense of community and connection. One such initiative is Miracle Treat Day, an annual fundraising event that benefits children’s hospitals across North America. By participating in this event, Dairy Queen not only supports a worthy cause but also reinforces its commitment to making a positive impact on the community.
Additionally, Dairy Queen targets Generation X parents and aims to capture millennial customers, particularly females, through campaigns like the Hardest Working Happy Hour. These campaigns engage customers through relevant messaging and promotions, further building brand loyalty and increasing customer engagement.
Digital Engagement: Leveraging Social Media Channels
In today’s digital age, Dairy Queen recognizes the importance of maintaining a strong presence on social media channels. With over 11.8 million Facebook followers, Dairy Queen has successfully built a large and engaged online community. This social media presence allows Dairy Queen to interact directly with customers, share updates, and promote special offers and events.
With an average of eight posts per month on each social media channel, Dairy Queen leverages social media platforms to engage with fans, create buzz around new products, and drive customer loyalty. Dairy Queen’s social media success is evident in its substantial follower count, surpassing competitors such as Burger King, Arby’s, Culver’s, and Wendy’s on Facebook.
To further optimize their social media efforts, Dairy Queen launched the “Upside Down or Free” promotion campaign, which reached 20 million people. This interactive campaign not only increased ad recall among 25- to 34-year-olds by 18 points but also boosted awareness of the promotion by 8 points and purchase intent by 3 points.
With these customer loyalty initiatives, Dairy Queen continues to establish itself as a beloved brand, enhancing the overall customer experience and building lasting connections with its fan base. By leveraging DQ Rewards, fostering fan engagement, and leveraging the power of social media, Dairy Queen is well-positioned to maintain customer loyalty and drive future growth.
Harnessing the Power of Braze for Fan Engagement
ADQ recognized the importance of a strong fan engagement strategy and chose Braze as its CRM platform. The focus was on using the loyalty program, DQ Rewards, to deepen fan relationships through tailored communication and experiences. The launch of a new app in 2022, exclusive app-only deals, and the ability to earn and redeem DQ points were key elements in driving habit-forming behavior and increasing customer loyalty.
The Role of AI in Fan Engagement Strategy
In the age of AI, companies like ADQ are leveraging advanced analytics tools to gain a competitive edge. AI can provide speed and precision in analyzing market trends, customer preferences, and competitive landscapes. By harnessing the power of AI, ADQ was able to develop a data-driven fan engagement strategy that resonates with their target audience.
AI tools can aid in analyzing and validating business ideas quickly and efficiently. They can provide real-time insights into consumer behavior patterns and predict market shifts. With AI, ADQ was able to effectively evaluate their fan engagement strategy and make data-driven decisions to enhance their customer experience.
The Impact of Braze on Fan Engagement
With Braze as their CRM platform, ADQ was able to personalize their communication and engage fans on a deeper level. The loyalty program, DQ Rewards, became a powerful tool for building customer loyalty and driving repeat business.
Braze’s automation capabilities enabled ADQ to send targeted messages to their fans, promoting exclusive app-only deals and offering personalized rewards. This personalized approach created a sense of exclusivity and incentivized fans to continue engaging with the brand.
Measuring Success with Analytics
Integrating Braze with analytics software allowed ADQ to monitor the progress of their fan engagement strategy and measure its effectiveness. By aligning their strategy with analytics results, ADQ was able to continuously improve their approach and enhance the fan experience.
AI tools can be used for sentiment analysis, social media trend analysis, SEO tracking, and competitor analysis. With Braze’s analytics capabilities, ADQ could gain valuable insights into the success of their fan engagement efforts and make data-driven adjustments to optimize their strategy.
The Road to Long-Term Loyalty
Harnessing the power of Braze and integrating AI into their fan engagement strategy has allowed ADQ to create a solid foundation for long-term customer loyalty. By offering personalized experiences, exclusive rewards, and continuous improvement based on analytics insights, ADQ has been able to cultivate a loyal fan base that keeps coming back for more.
| Benefits of Braze for Fan Engagement | Benefits of AI in Fan Engagement |
|---|---|
| Personalized communication | Speed and precision in analyzing market trends |
| Exclusive app-only deals | Real-time insights into consumer behavior patterns |
| Earning and redeeming DQ points | Ability to predict market shifts |
| Automation of targeted messages | Improved idea evaluation and decision-making |
| Enhanced sentiment analysis and competitor analysis |
Leveraging GoSpotCheck for Brand Compliance
Monitoring brand compliance across a large franchise system can be a challenging task. However, Dairy Queen has found an effective solution by leveraging the power of GoSpotCheck. This execution management software has revolutionized the way Dairy Queen franchises monitor and maintain brand standards, ensuring a consistent product experience across all locations.
Before the implementation of GoSpotCheck, franchise teams would spend up to an hour manually recording data and performing reports. This time-consuming process not only took away valuable resources but also hindered the ability to address brand compliance issues in a timely manner.
With GoSpotCheck, franchise teams can now streamline their brand compliance efforts. The software offers features such as mobile task management, comprehensive photo reporting, configurable data dashboards, and offline mode. These tools enable teams to easily collect and submit photos and data to corporate, resulting in significant time savings. The intuitive interface of GoSpotCheck simplifies the process, allowing franchise teams to focus on what matters most – ensuring a consistent and exceptional customer experience.
One of the key benefits of GoSpotCheck is its ability to provide real-time data insights. This allows Dairy Queen to identify and close execution gaps promptly. By leveraging the software, PepsiCo, a partner of Dairy Queen, has been able to gain valuable market intelligence, optimize retails, ensure planogram compliance, and provide education to store team members.
GoSpotCheck has also proven to be a valuable tool for improving food safety in real time. With features such as mobile temperature tasks and Bluetooth thermometer IoT integration, restaurant operators can monitor and maintain optimal food safety standards. This proactive approach ensures that potential issues are identified and addressed promptly, further enhancing the brand’s commitment to quality.
The acquisition of GoSpotCheck by FORM.com has further solidified its position as a leader in the execution management space. The merger brings together complementary sectors, including Consumer Goods, Retail, Healthcare, Restaurant, Hospitality, Real Estate, and Facilities Management. FORM.com’s extensive experience with Fortune 500 companies and clients globally adds another layer of reliability and expertise to the GoSpotCheck platform.
GoSpotCheck and Dairy Queen
| Key Benefits | Statistics |
|---|---|
| Time saved collecting and submitting photos and data to corporate | Reduced by 80% |
| Number of countries where GoSpotCheck has customers | 135 |
| Total tasks completed by GoSpotCheck customers | Over 1 billion |
| Recognition as a store associate technology leader | Forrester’s 2020 Now Tech report |
In conclusion, GoSpotCheck has proven to be a valuable asset for Dairy Queen in maintaining brand compliance across its franchise system. By streamlining the process of collecting and analyzing data, Dairy Queen has been able to ensure a consistent product experience, improve food safety, and close execution gaps. With its robust features and real-time data insights, GoSpotCheck continues to empower franchise teams to optimize operations and enhance customer experiences globally.
Dairy Queen’s Global Presence
With its roots dating back to 1940, Dairy Queen has established itself as a prominent player in the fast-food industry. While initially operating primarily in the United States, the brand has experienced significant global expansion over the years.
Currently, Dairy Queen boasts over 7,000 franchised restaurants worldwide, operating under various brand names including DQ Grill and Chill, Dairy Queen (DQ), and Orange Julius. This extensive network demonstrates the brand’s commitment to providing delicious treats and meals to customers around the world.
One of Dairy Queen’s key strategies for global growth is targeting countries with lower competition levels. By identifying these untapped markets, the company aims to increase its market share and solidify its position as an international chain.
In recent years, Dairy Queen’s success has been remarkable. Despite having fewer locations compared to some of its competitors, the brand reportedly achieved the highest sales revenue in the fast-food industry in America. This achievement can be attributed to Dairy Queen’s strong brand recognition, reputation, and unwavering commitment to quality.
An example of Dairy Queen’s global expansion efforts is its partnership with FountainVest Partners, with the aim of opening 600 additional restaurants in China by 2030. This move not only demonstrates the brand’s ambition for growth but also highlights its recognition of the Chinese market’s potential.
To further support its global presence, Dairy Queen has embraced digital innovation and loyalty programs. The DQ App, recognized as one of America’s Best Loyalty Programs by Newsweek, has seen tremendous success with numerous Awards of Excellence. Dairy Queen’s digital platforms have attracted over two million new members, driving a significant increase in purchase conversion.
Looking ahead, Dairy Queen continues to explore opportunities for expansion into new markets. Australia, Latin America, and the Middle East are among the regions the brand is considering, as it seeks to bring its iconic treats and dining experiences to even more customers around the world.
Furthermore, Dairy Queen recognizes the importance of innovation in staying ahead of consumer trends and preferences. The brand is actively exploring initiatives such as introducing plant-based menu items and adopting eco-friendly practices to align with evolving customer values.
In conclusion, Dairy Queen’s global presence is a testament to its enduring success and commitment to delivering quality food and experiences to customers worldwide. Through strategic partnerships, digital advancements, and a focus on expansion into new markets, Dairy Queen continues to solidify its position as a global leader in the fast-food industry.
Conclusion
Dairy Queen’s marketing strategy for 2024 showcases its branding prowess and innovative promotions, aiming to strengthen its position in the market. Through strategic partnerships and investments, Dairy Queen has been able to modernize its digital experiences, drive customer loyalty, and maintain brand compliance across its global presence.
The acquisition of Orange Julius in 1987 allowed Dairy Queen to co-brand and offer a wider range of products, further establishing its dominance in the industry. The introduction of Brazier locations offering burgers and fast-food items also helped Dairy Queen attract a broader customer base, expanding its reach beyond soft-serve ice cream.
Despite facing chaos during its early franchising days, Dairy Queen has come a long way and reported remarkable growth. In 2021, it generated approximately $225 million in revenue, experiencing an 18% increase from the previous year. The net income for International Dairy Queen reached $84 million, displaying a nearly 17% rise from 2020.
Dairy Queen’s aggressive growth strategy is evident in its plans to open 180 food-centric DQ® restaurants in China by 2034 through a partnership with CFB Group, aiming to capitalize on the region’s market potential. Furthermore, Dairy Queen’s recognition for its digital platforms, including the DQ App, winning multiple Awards of Excellence, solidifies its position as a leader in customer engagement.
Looking ahead, Dairy Queen is exploring opportunities for expansion into Australia, strategically aligning with the cultural and economic climate of the market. The brand is committed to innovation, emphasizing healthier options and sustainability to differentiate itself and continue growing in response to market trends.
Table 10: Dairy Queen’s Success Highlights
| Year | Achievement |
|---|---|
| 1985 | Blizzard sold over 100 million units in its first year |
| 1997 | Acquisition by Warren Buffet’s company for $585 million |
| 2021 | Revenue of approximately $225 million, marking an 18% increase |
| 2021 | Net income for International Dairy Queen reached $84 million, showing a nearly 17% rise |
| 2021 | Sales at comparable locations rose by 10.5%, with an almost 18% increase combined for 2020 and 2021 compared to 2019 |
As Dairy Queen continues to expand globally and adapt to market trends, it remains committed to delivering high-quality dairy products and exceptional customer experiences in its pursuit of sustained growth and success.
Looking Ahead
As Dairy Queen continues to pave its way in the fast-food industry, the brand’s future plans revolve around constant innovation, strategic advancements in its marketing strategy, and a commitment to delivering exceptional customer experiences. With over 80 years of successful operations and a strong brand identity, Dairy Queen is well-positioned to thrive in an ever-changing landscape.
Building upon its foundation of quality products and outstanding service, Dairy Queen will explore new avenues to further enhance customer engagement and satisfaction. Leveraging digital technologies, the company will continue to modernize its online presence, creating seamless experiences for customers both in-store and online.
Bolstered by its global presence, Dairy Queen will extend its reach to new markets, adapting to local tastes and preferences while maintaining its commitment to menu innovation. The brand’s emphasis on community engagement and corporate social responsibility will remain intact, fostering meaningful relationships with customers and giving back to the communities it serves.
