ANALYZING THE IMPACT OF MCDONALD'S DIGITAL TRANSFORMATION AND CUSTOMER EXPERIENCE AND LOYALTY AT SM FAIRVIEW PARKWAY

Abstract

McDonald’s, established in 1940 and launched in the Philippines in 1981, has experienced substantial growth, including the opening of branches such as SM Fairview Parkway, likely in the late 1990s. In recent years, there has been a significant shift in its digital transformation, particularly between 2016 and 2020. During this period, the company introduced key innovations such as mobile ordering, AI-driven marketing, and cashless payment systems to align with changing consumer demands and technological advancements. Despite these efforts, challenges persist—particularly in keeping pace with rapid technological change while ensuring consistent customer satisfaction. The central concern lies in whether these digital tools truly enhance customer experience. To address this, McDonald’s has increasingly leveraged big data and artificial intelligence to personalize services, aiming to strengthen customer engagement and build long-term brand loyalty. This portion of the study, accounting for 25% of the overall research, utilizes a descriptive research design under the quantitative method to examine the impact of McDonald’s digital transformation on customer experience and loyalty at SM Fairview Parkway. Data were gathered through survey questionnaires distributed to 100 purposively selected respondents—equally divided between 50 males and 50 females. As defined by Chen and Patel (2024), purposive sampling allows for the deliberate selection of individuals who are most relevant to the research objectives. The collected data provided insights into customer opinions and experiences, enabling the identification of key factors influencing digital engagement and supporting the development of research hypotheses. The findings indicate 35% of digital tools—including mobile applications, self-service kiosks, and other digital interactions—have a generally positive impact on customer experience and loyalty. Nonetheless, significant challenges remain, particularly related to the mobile app’s usability and service efficiency. Notable issues include prolonged waiting times for mobile orders, inadequate digital support, and operational inefficiencies in kiosk systems. To mitigate these concerns, the proposed action plan recommends optimizing mobile ordering workflows, enhancing app navigation, upgrading payment systems, and strengthening customer support. These measures aim to elevate customer satisfaction and foster stronger brand loyalty through a more seamless and effective digital transformation. Fifteen percent of the study recommends customizing digital services to cater to young, single users through personalized promotions and interactive features. Improving app navigation, kiosk responsiveness, and overall system efficiency is crucial. Addressing challenges such as long wait times, inadequate support, and technical issues with real-time order tracking and enhanced customer assistance can significantly improve user satisfaction. Regular system updates, AI-powered support, and trained personnel are vital to delivering a seamless digital experience. Furthermore, reinforcing loyalty programs and leveraging customer feedback for continuous improvement will enable McDonald’s to increase engagement and sustain long-term customer loyalty at SM Fairview Parkway.