Unlocking Loyalty: Learn from Industry Leaders and Driving Growth to Local Coffee
What coffee shop owners can learn from the loyalty and rewards program of the coffee industry leader, without compromising their own unique brand and identity.
Joe Success Team
May 10, 2023
Starbucks' Formula for Customer Loyalty
Starbucks recognized the major appetite for coffee and quick service among U.S. coffee lovers. By investing in creating a convenient and rewarding experience for their customers, they've been able to drive nearly all of their same-store revenue growth from digital relationships.
How did they achieve this growth? Embracing technology and creating this formula:
- Introducing digital rewards and gamification to the coffee industry
- Use data to automate marketing and personalize messages
- Creating an all-in-one loyalty & rewards experience
In 2020, joe conducted a survey and found that 70% of Starbucks' mobile customers surveyed would switch to support local coffee with a similar app experience. With the right technology, independent coffee shops can harness this customer appetite and drive similar levels of revenue growth.
Digital Rewards & Gamification
Starbucks was the first to introduce digital rewards and gamification to the coffee industry with the launch of their Starbucks App and Starbucks Rewards. Their highly successful rewards program has played a key role in the company's growth over the years.
For many years, indie coffee shops couldn't compete, resorting to punch cards as an inexpensive way to create some type of loyalty incentive.
Joe Point of Sale, complete with loyalty and rewards, offers customers rewards on every purchase, whether in-person or digitally. Customers can participate in bonus challenge days, complete in-app challenges to reach certain milestones, and refer friends to earn more free drinks.
Data-driven Automated Marketing
Gathering and understanding customer behavior through data is an important driver of customer loyalty for corporate coffee giants, who leverage that data to encourage repeat purchases.
As the largest network of independent coffee lovers in the U.S., Joe brings the ordering behavior data of all our coffee customers across the network to your small business.
In fact, one joe Point of Sale partner shared that the personalized messages and automated re-engagement "is like having another full-time employee who is dedicated to promoting my coffee shop".
All-in-one Loyalty Experience
Starbucks has developed a strong brand that is based on a consistent and trustworthy experience, regardless of which location customers visit.
Investing in an all-in-one system, such as Joe Point of Sale complete with mobile ordering and rewards, creates the consistent and trustworthy experience customers crave.
When customers are rewarded consistently for ordering in-person or when they order ahead for pick up, this encourages repeat purchases and drives revenue growth.
By learning from the success of Starbucks' loyalty program and implementing similar strategies, independent coffee shops can build a strong and loyal customer base, enhance the customer experience, and grow their business.