Restaurants, retailers, grocery stores, salons, fitness centers and more depend on loyal customers and repeat visits. In addition, regular customers often spend more per visit and are more inclined to sign up for upgraded services. Businesses can increase their customer retention in several ways as shown in the infographic below.
While that does mean coffee shops have a huge market at their disposal, it also means that they have to deal with a lot of competition as well.
Well, a thoroughly-planned customer loyalty program could be just the solution someone like you a coffee shop owner would need in such a situation.
Plus, losing a customer and having to acquire a new one will cost your coffee shop much more money in the long run. So, customer retention is definitely the way to go. Now, we do realize that structuring a customer loyalty program for your coffee shop can be complicated — especially if you have no experience with this.
Sure, the steps might be a bit similar, but there will be variations — variations that solely depend on your coffee shop and how it works. Decide How the System Will Work By that, we mean that you first and foremost need to structure the loyalty points system and decide how to make it work.
Yes, you can use stars or other loyalty indicators instead of points, but points-based accumulation seems to be the most well-known and popular one with consumers.
So, here are your options: A Visits-Based System — Essentially, every time your patrons visit your place of business, they receive a certain amount of loyalty points no matter how much money they spend. A Cashback-Based System — The premise is pretty simple.
This approach usually works best for places where clients can sit down and place an order like restaurantsthough. A Points-Based System — The idea is that for each dollar a client spends at your coffee shop, they receive a certain number of loyalty points 2 is the standard.
In our opinion, letting customers redeem rewards works better for coffee shops.
A visits-based system can work as well. After all, your clients will end up re-visiting your place of business very often — especially those who are on their way to work, home, or on a break. Think about Adequate Rewards Next, you must decide what kind of rewards will convince your current clients to be a part of your customer loyalty program and keep coming back.
Also, said rewards have to be able to attract new customers to your coffee shop as well. Besides these types of rewards, you should also think about promoting special offers on particular days of the week.
For example, you could give your customer loyalty program members a chance to earn double points for every dollar they spend on Thursdays. Before fully implementing your coffee shop customer loyalty program, have your employees survey patrons and ask them what type of rewards they would like to receive the most.
Customer insight is always a good addition, so we recommend you take the time to do something like this as well even if you have a few rewards in mind already. Structure the Rewards into Tiers So, you finally have the rewards figured out now.
Basically, you need to split them into tiers — with the first one being the easiest to obtain, and the last one being the most difficult to access. Easy Tier up to points — The initial tier would mostly be geared towards your more impatient customers.
The rewards in this tier should be something they always need and can redeem with only a few visits. As a result, the rewards should be popular items that define your coffee shop and your brand.
The rewards in this tier should be of high value — something said customers will really treasure and find useful a watch, bracelet, a high-quality coffee mug, and so on. Also, we advise adding a touch of personality to further strengthen the relationship you have with your high-spending patrons like having their name engraved on the reward, for example.
Design Coffee Shop Loyalty Cards That Truly Represent Your Brand Now that you have a top-notch customer loyalty program set up for your coffee shop, you also need a quality loyalty stamp card to go along with it. The first thing you need to make sure is that your coffee shop loyalty cards represent your brand the right way.
By that, we mean that the cards should feature: Thematic colors that remind consumers of your brand. Oh, and be sure to outfit your loyalty cards with a keychain hole.U.K.
chain Costa Coffee use customer data from multiple sources to create sharply targeted communications that drive a loyalty program that actually works for buyer and brand. With a coffee shop. Customers earn stars with their purchases, with opportunities to double their rewards certain days of the month and graduate to tiers of loyalty.
All you need is a Starbucks gift card and a smartphone. Such loyalty programs should be coupled with other efforts to keep regulars connected to the business through email, social media and special events.
In Washington D.C. earlier this year, several independent coffee shops even banded together and created a “disloyalty” program, in which it rewarded locals for visiting several different cafes.
On the other hand, good customer service builds loyalty that can dramatically increase profits. The biggest effect of The Great Coffee Spill of ? The EPI . How a customer interacts with a loyalty program can often make or break that program.
Starbuck’s app makes their loyalty program more interactive and more effective. The app makes it easy to see how many “stars” (points) you currently have, as well as make orders and payments right from your phone.
Building customer loyalty and retention is a huge part of growing a restaurant business and the ambiance of a restaurant is a huge part of why patrons come back. Want to make color work for you and knock it out of the restaurant color design park?