Incentive and Reward Program Ideas for Coffee Shops
From the artists and bohemians that frequented Paris’ famed turn-of-the-century cafés, to the Friends’ crew making memories at Central Perk, it’s clear that customers are integral not only to the financial success of coffee shops but also their whole vibe and charm. Therefore, coffee shop owners’ second most important job (after brewing a great cup) is to encourage customers to keep coming back. In today’s competitive café landscape, going above and beyond for your customers can really pay off.
A coffee shop rewards program is a great way to appeal to clientele and turn each new customer into a loyal patron. In fact, according to McKinsey, 64% of loyalty program members are more likely to make more frequent purchases than non-members and 50% are more likely to recommend your business to people they know.
And don’t worry, launching a coffee shop loyalty program doesn’t mean you need the resources of Starbucks or Dunkin’: there are many ways small businesses can offer customers rewards and perks that build loyalty without breaking the bank. Let’s take a look.
The stamp card
You can’t go wrong with the original customer incentive program: the loyalty stamp card. This tried-and-true practice is simple enough: you give customers a card that gets stamped every time they make a purchase, and when they’ve bought, say, nine coffees, they’ll get the 10th one free.
The stamp (or punch) card is effective for increasing customer frequency and building loyalty—and can be particularly valuable if you are in a neighborhood with lots of cafe competition. Ultimately, if your customer knows that every purchase they make takes them one step closer to a reward, they will keep coming back.
Point rewards
While the humble stamp card is a simple way to get started with a loyalty rewards program, digital rewards are becoming increasingly common since they deliver even more benefits to coffee shops and their customers. With an integrated point of sale (POS), it’s easier than ever to share rewards with your loyal customers.
Using SumUp Connect, for instance, you can easily grow your customer database and track how rewards programs are performing, while customers can collect points for every purchase they make. This type of customer incentive program is pretty straightforward: for every dollar your customer spends, they will earn a point. You can then choose what rewards to offer when they’ve hit a certain point threshold. For example, 30 points could equal a small cappuccino, while 60 points could be redeemed for a coffee and pastry. Feel free to get creative with the rewards!
Exclusive promotions
With a POS digital loyalty program in place, your coffee shop can also give customers exclusive promotions based on their specific preferences and tastes. This is made possible by the fact that POS systems like SumUp can create a customer profile for each person that orders a coffee and signs up to your loyalty program.
Purchase history data can be used to send customized offers to loyal patrons, like a discount on a new type of coffee blend that they might like, or a BOGO deal on their favorite drink order. This type of incentive program is great for giving bonus rewards to your most loyal customers or to encourage a customer you haven’t seen in awhile to visit your business again.
Birthday rewards
Birthday rewards are used by many big brands, from Sephora to Ben & Jerry’s, and can be equally effective as a rewards program for small businesses. Offering a special reward to customers on their birthday can demonstrate your appreciation for them and give them something to talk about with their friends (i.e. free word-of-mouth marketing). After all, who doesn’t love a free treat on their special day?
There are a couple of ways to implement birthday rewards. The traditional way is to promote the offer and have customers show a piece of ID proving it is their birthday. With a POS, however, the process is much simpler: when a new customer joins your coffee shop’s loyalty program, they can choose to share their birthday. This data will remain on file and will automatically apply the reward when their birthday rolls around.
Fostering loyalty counts
Ultimately, loyalty rewards programs help build stronger relationships with your customers, which has benefits both for your coffee-drinking regulars and your bottom line. To learn more about loyalty programs enabled by SumUp Connect, get in touch with our team today.
