Everything you need to know about creating a successful digital loyalty programme for your coffee shop

July 6, 2022

Adopting a loyalty scheme has a range of benefits for your business - from a higher customer lifetime value, to an increased purchase frequency and higher customer retention, and many more.  

Members of loyalty programs have been known to generate 12-18% more revenue than customers who do not participate*, so you’ll be sure to see a great ROI after investing in a digital loyalty program.

If you’re looking into adopting a digital stamp card at your venue and have no clue where to start, here are a few things to know:

1. Stamp cards are quick, easy and convenient for customers 

Stamp cards tend to be adopted by cafes and coffee shops, as customers earn a stamp for every coffee purchased. Once their stamp card is full, they can redeem a free coffee! Their stamp card then clears back to zero, so that they can start earning those coffees again. It’s foolproof and easy to keep track of for customers, and because their digital stamp card is readily accessible on their phone, they’re less likely to lose it like they would a paper stamp card.

Over Under coffee - stamp card

2. Gather customer data to offer personalised rewards and perks

When customers use your rewards programme, it can give you access to user data that you otherwise wouldn’t have access to. For each customer profile, you can see their purchase history, how often they visit, how much they purchase per visit, which locations they visit (if you have multiple sites), and so on.

You can use this data to your advantage by separating customers by demographic, interests, favourite products…etc and adding them into audiences. This allows you to tailor your perks and rewards, as well as the content you display to them, so that it’s more meaningful and personalised. All customers are different, and therefore deserve to be rewarded differently.

It lets your customers know that you understand their needs, and catering to their specific needs results in both higher engagement and more frequent return visits.

3. Spread the word through social media 

There’s no point creating a loyalty program if customers aren’t aware of it, so make sure to shout from the rooftops about it, how it works and how it will benefit your customers! Marketing and advertising is essential for a successful loyalty scheme.

Social media particularly is a great marketing tool in this instance, and the chances are your most loyal customers already follow you, so they’ll be in the know about your loyalty program straight away. Marketing on your social media channels is inexpensive, and it enables you to get creative when getting your brand message across to your target audience and customers.

4. Stay ahead of your competition

The hospitality industry is a competitive market, so being reactive (even better still - proactive) is important to stay afloat, especially amongst the top dogs and large companies. A lot of large coffee chains such as Starbucks, Caffe Nero and Costa run a loyalty programme to reward customers and keep them coming back regularly. 

88% of consumers are influenced by loyalty rewards when choosing which venues to visit*... That’s almost 9 customers out of 10!  So when it comes down to someone choosing you or another coffee shop round the corner, a loyalty programme can make a real difference for your sales and revenue.

Therefore, offering a program that works for your business and your customers can help you to keep up with the competition and stand out.

Small Victory Bakery - stamp card

Creating your first loyalty programme with a stamp card doesn’t have to be tedious or confusing! The Pepper team are always here to help, so feel free to get in touch with us here if you’d like to get your business’ digital journey started…

**KAM Media, 2019.

* Blackhawk Network, 2020.

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