Dunkin’ Donuts is strengthening its position in the mobile space by updating its commerce-enabled application with location-based offers that reward consumers for paying through their handsets.

Since launching its app earlier this year, Dunkin’ Donuts has been aggressively marketing it with multiple campaigns. The Dunkin’ Donuts app is available for iPhone and Android devices.

“Dunkin’ Donuts guests are always on the go, and increasingly reliant on mobile devices,” said Scott Hudler, vice president of global consumer engagement for Dunkin’ Brands, Canton, MA.

“By enhancing the Dunkin’ app to include special discounts and promotional offers on Dunkin’ foods and beverages, Dunkin’ Donuts is rewarding loyal fans and deepening the brand’s connection with people who make Dunkin’ Donuts part of their daily lives,” he said.

“As a nearly 100 percent-franchised company, it is strategic to have different offers by market that will resonate with local guests.  We also believe that the vast majority of Dunkin’ Donuts mobile offers will be redeemed by guests at local Dunkin’ Donuts restaurants near where they live or work. We have no plans for national mobile offers at this time, but it is something we might explore in the future.”

Dunkin’ Brands includes both Dunkin’ Donuts and Baskin-Robbins.

Targeted offers
The updated Dunkin’ Donuts app now includes a “My Offers” tab.

The app uses a device’s built-in GPS to find nearby offers for food and drink items at Dunkin’ Donuts. Consumers can then click on an offer, which brings up a mobile bar code that is scanned by an employee at the point of sale.

The feature is being rolled out to some markets this week with other markets planned in the coming months.

Examples of offers include buy-one-get-one-free and discounted drinks.

Additionally, consumers can still pay for food and drinks via the app by loading a Dunkin’ Donuts Card and showing a bar code to check-out. Consumers can also send gift cards to friends and family, find the nearest store and view nutritional information.

Mobile coffee
Dunkin’ Donuts initially launched its mobile payment app in August (see story).

Since then, the company has been actively promoting it through several campaigns that include social media and mobile advertising.

Most recently, Dunkin’ Donuts ran a targeted mobile ad campaign inside the Weather Channel iPhone app to encourage consumers to download the app (see story).

By adding deals to the app, Dunkin’ Donuts is able to not only lure in new users but also drive repeat app usage with time-sensitive content.

The market for mobile payments with small, everyday items such as coffee has a lot of competition in it.

For example, Dunkin’ Donuts competitor Starbucks Coffee has been steadily building a mobile strategy around its branded payment app. Most recently the company announced that it processes more than two million mobile payment transactions per day (see story).

“We have seen a lot of success in engagement through our mobile and location-based promotions over the past few years,” Mr. Hudler said.

“Continuing to expand our mobile presence and location-based promotions will be an important part of our marketing efforts moving forward,” he said.

“Part of why these programs are so important to Dunkin’ Donuts is that our busy guests are always on the go, so we know that they’re increasingly reliant on their smartphones to keep them running. What’s very exciting beyond driving traffic to our restaurants is that these types of programs encourage our guests to engage with us while actually inside a Dunkin’ Donuts restaurant.”

Final Take
Lauren Johnson is associate reporter on Mobile Commerce Daily, New York