Um, Yes, You Need A Rewards Program

by | May 21, 2020 | 📨 Newsletters

Loyalty is hard to come by in coffee. This will help.

You know what feels really good?

Getting something free.

But do you know what can sometimes feel even better?

EARNING something free.

It sounds strange… but it’s true. Humans are pretty weird. We like working for free stuff. Just ask people addicted to credit card points.

Or people who read The Points Guy and Nerd Wallet blogs.

Or people who use boosts on Cash App.

Or anyone who’s ever taken advantage of a BOGO sale.

And do you know why this matters for your business?

Your customers are pretty weird too. They like working for free stuff – which is why you should implement a customer loyalty program.

81% of people are more likely to frequent brands in which they participate in a loyalty program. Oh yeah – here’s the study.

Every time I visit a cafe or online roaster and don’t see a loyalty program of some sort, I’m shocked. It’s low-hanging fruit!

Rewards Build Loyalty, And Loyalty Has Benefits

  • Building a solid group repeat customers you can rely on.
  • A way to send customers offers and stories that they WANT to hear.
  • And a really good way to show your customers that you care about them – without breaking the bank. You’ll actually make more money, and gather more satisfied customers.

With competition like there is today, building loyalty with an intentional program is not optional.

Some customer loyalty programs are free with your current POS or eCom system (Square, Toast). You can also find some neat apps with free plans on them.

3 Types of Loyalty Programs

Here’s a quick rundown of common loyalty programs.

  • Punch Cards — The classic “Buy 9, Get 1 Free” punch card is easy to understand on the customer side and already exists inside Square’s POS system. I suggest digital over physical cards.
  • Multi-Tier Reward Programs — When you give customers a gift each time they reach a threshold. Maybe that’s a free bag of coffee after their 10th visit or $100 spent. Perhaps Teir #2 is a $30 gift card when they reach 50 visits. Tiers are a little more difficult to track.
  • Point Systems  This one works particularly well with ecommerce stores. Every $1 spent earns 1 point, for example. Those points can then be traded for things like discounts ($5 off) or add-ons (free coffee sample).

It’s important to always be thinking of new ways to communicate with the people who buy your product – whether it be a $3 cup of coffee or a $25 bag of beans. Remember that they like you. That’s why they’re buying your stuff. Tell them thanks by letting them earn a free coffee or pastry now and then.

They’ll go from liking you, to loving you 🙂

Hey 👋 I'm Garrett Oden

Hey 👋 I'm Garrett Oden

Freelance Coffee Marketer

I'm a coffee industry native who works with coffee brands around the world to create and execute captivating marketing strategies.

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