Just as promoting the brand, products and services is a strategy that the company needs to invest to be recognized by the public, customer loyalty is a major competitive differential in times of fierce competition. So having a good loyalty program in your coffee shop will help your business stand out.
However, working on this is as important as being a little complex. You need to know that loyalty goes beyond discounts or rewards. Before that, we need to work on some aspects that focus on the customer experience. Among these aspects we highlight initially:
The quality of your products / services;
- The establishment of a warm and welcoming atmosphere
- A trained, specialized and cordial service team;
- An after sales team especially the same as sales.
Remember that customer relationship is one of the main factors for the success of a company, regardless of the market segment in which it operates. Other similar companies may even copy your products and services, but they will rarely be able to build the same connections you create by providing well-crafted experiences. They are the ones who will always renew the customer’s desire to always return. Therefore, human experiences should be the focus of your business.
Now, we can move on to the second step: the moment for your coffee shop to establish a good loyalty program, seeking to further expand customer relationships and make them fans of your brand / establishment.
Why have a loyalty program?
Winning a customer is a task that must be faced daily. That’s because winning a new customer costs 5-7 times more than maintaining a current one. Even if your “old” customers don’t spend the most on a single visit, they always make repeat purchases and are often much more likely to refer your cafeteria to others.
We have listed some more data for you to understand the importance of having a good loyalty program:
- About 50% of customers do not return after their first purchase (FiveStars LoyaltyInc);
- 20% of the most loyal customers generate up to 80% of a business’s income, and represent 72% of visits (The Wise Marketer);
- On average, 20% of the customer base is lost naturally throughout the year (The Handbook of Customers Satisfaction and Loyalty Measurement);
- A 5% increase in customer retention can represent a 25% to 95% increase in profits (Harvard Business School).
In this sense, the advantages that a loyalty program offers can make your physical store extremely competitive in its segment. This type of program keeps the establishment moving ever higher and allows for an increase in the customer base through a points accumulation reward system and other processes.
In addition, the business gets the opportunity to build a large database and narrow channel with its key customers. You will have a chance to talk to them directly, get to know them better, and thus offer products and services that are increasingly aligned with your audience’s expectations.
How do I start the loyalty program in my coffee shop?
To get you started with a loyalty program in your coffee shop, here are three main points that will underpin the strategy:
1 – Know your customer
This is the first and essential step in setting up a loyalty program. You need to know your customer well and understand what attracts them to your establishment, their favorite products and how much they usually spend with each visit.
To do so, observe, ask, and evaluate their behavior through quick store searches, social networks, and reviewing purchase records.
2 – Set the mode of operation and the rewards
Now is the time to define the backbone of your loyalty program, which can be a score for value spent, for example, adding one point to every dollar consumed. Another option is to restrict the program to consumption and count only each coffee or other product paid as a point – you can assign a certain score to each type of product according to price. Think of discounts on menu items, specialty drinks, some cool cafeteria utensils, a pound of specialty coffee, and more.
As for rewards, remember that they should be truly attractive to the customer and encourage them to return to their point on a regular basis – but it is also important that they do not break your business accounts. Prizes cannot be too distant either, requiring very high spending or dozens of visits until the customer can receive some benefit. If the person does not realize that they are really gaining a fair advantage, they will be less inclined to participate in the program.
3 – Have clear rules
For people to be attracted to your coffee shop’s loyalty program, it must be objective and easy to understand. The rules need to be clear, with no small print and no room for doubt.
Also, be sure to spread the word – use the site, social networks and print media in your establishment, as well as employee incentives – as well as monitor the buying behavior of customers being rewarded. Collect data and evaluate, for example, the frequency of visits and whether there are purchases made on the days it was rewarded.
There are several software and application options on the market, such as Fidelêco, Fidelimax and StayApp, which are tools that manage customer data and, with this information, can detect trends and separate customers into categories according to their consumption habits.. It may be a good alternative for your coffee shop to start a good loyalty program now.