4 Reasons Why Your Coffee Shop Is Failing To Deliver A Coherent Loyalty Program – CoffeeTalk
About 63% of customers make buying decisions based on loyalty programs they participate in, making it crucial for businesses to build engaging, inspiring, and rewarding loyalty schemes. However, many coffee shops fail to attract the level of attention expected due to four fundamental reasons:
1. The Program is Too Opaque
Customers are receptive to clear and easy-to-follow loyalty schemes that aren’t too convoluted to understand. Starbucks’ early digital loyalty program failed to deliver a coherent set of goals to consumers, as noted by neuroscience and marketing author Roger Dooley in 2012.
2. Personalization Goes Away
Personalization goes a long way when it comes to implementing an engaging reward system. Advanced coffee shop, cafe, and restaurant POS systems can support the structure of personalized loyalty schemes by utilizing real-time customer reporting to understand their purchase habits and deliver special offers that closely align with their interests.
3. Nobody Knows About Your Loyalty Program
There’s no point in introducing a loyalty program for your customers if they have no way of finding out about it. Many loyalty programs can fail due to a lack of awareness. To avoid this, it’s essential to back your scheme up with sufficient advertising and special promotions.
4. You’re Rewarding Disloyal Customers
It can be tempting to use loyalty schemes to send special offers to customers who have churned or failed to make a purchase over a long period of time. However, this could risk undermining the actual loyalty aspect of your loyalty scheme. If disloyal customers are getting better rewards for making one purchase every three months, they will have no motivation to visit your shop more frequently. Worse still, your regular consumers could wise up to this and break away from making regular purchases.
To avoid this, focus on incentivizing winbacks, never make the offers sent to disloyal consumers more appealing than those enjoyed by your most loyal customers. One option is to create a more robust points system where your best customers can earn even more appealing rewards for their visits.
5. Utilizing Intelligent Loyalty
Too many hospitality firms blindly utilize loyalty schemes when the reality is that a more comprehensive approach can serve as a major asset in reducing customer churn and driving brand value. By harnessing the power of an intelligent customer loyalty scheme, you can deliver tailored experiences for consumers that accurately reward your biggest frequent spenders while inspiring more leads to choose your coffee shop to earn fulfilling rewards. This approach will help you form deeper ties with your customers and provide you with all the ingredients necessary to sustain your growth efforts long into the future.
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Source: Coffee Talk