Customer loyatly card
HI i am looking for idea for coffee card any one have sugestion? i wonder if we do 3 card like i seen before , one for latte/cap on for drip/tea and one for americano/espresso or i juste do one and even if the customer buy 9 drip coffee and get a latté as the free one there is chance that he stay hook to them..
any idea or experience?
thanks
any idea or experience?
thanks
Replies to This Discussion
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Permalink Reply by Bryan Wray on
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HOLY $H!T! You realize this is 20% right? Do you track what you give away? That's gotta be a HUUUUGE cut out of your bottom line, right? I mean do you really think you'd completely lose those customers if you didn't give such a ridiculous discount? I mean, if I got 20% of my purchases for free from a place I'd frequent them too, but not out of loyalty... out of the sheer fact that they were kinda giving their product away.
I'm not trying to attack, this just sounds like something that "sounds like a good idea" that isn't being properly monitored. I could be wrong, I guess. But a typical shop with a punch card system normally gives away $1500 or so a month... I can't even imagine giving away $3000 instead of $1500... yikes.
Again... just the first thoughts that ran through my head when I read that...
-bry
Shadow said:We offer a buy 5 get 1 free card regardless of drink purchased. No limits... not yet anyway. We know that is fairly low and we are probably shortchanging ourselves, but it keeps them coming back time and time again. Have noticed that with the free drink most regulars stick with the same thing they normally get and hardly ever go more expensive.
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Permalink Reply by olivier dutil on
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i dont think i will got to 5 for 1 free i was tinking at buy 9 get one free
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Permalink Reply by John P on
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How about buy 9, get the tenth for double the price!
THAT is customer loyalty!
Of course you may ask, "What does the customer get?"
An extra "Thank You" and a lot of appreciation. Eventually, these customers will get VIP treatment... no waiting in line, that sort of thing, because you will know who really supports you rather than who comes to get their "free drink"!
I think this "Customer Loyalty" program far exceeds any other.
:)
....
Be confident! I really think it would work.
... In all seriousness. Discounts do not breed loyalty. Just continue to make a great product and your customers will be more than happy to pay for it. It doesn't matter HOW you do it... discount programs of any kind have no positive long term benefits.
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Permalink Reply by Brady on
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Bryan Wray said:HOLY $H!T! You realize this is 20% right? Do you track what you give away? That's gotta be a HUUUUGE cut out of your bottom line, right? I mean do you really think you'd completely lose those customers if you didn't give such a ridiculous discount? I mean, if I got 20% of my purchases for free from a place I'd frequent them too, but not out of loyalty... out of the sheer fact that they were kinda giving their product away.
I'm not trying to attack, this just sounds like something that "sounds like a good idea" that isn't being properly monitored. I could be wrong, I guess. But a typical shop with a punch card system normally gives away $1500 or so a month... I can't even imagine giving away $3000 instead of $1500... yikes.
Again... just the first thoughts that ran through my head when I read that...
-bry
Shadow said:We offer a buy 5 get 1 free card regardless of drink purchased. No limits... not yet anyway. We know that is fairly low and we are probably shortchanging ourselves, but it keeps them coming back time and time again. Have noticed that with the free drink most regulars stick with the same thing they normally get and hardly ever go more expensive.
+1. Do the math, Shadow. Your actual COGS is way off from where it should be.
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Hi Oliver,
We do a loyalty card, but really wish we hadn't. Consider your decision carefully, it is easier to give than to take away.
The "chance to hook them" doesn't work that way. We tried. They'll fill the card up with small coffees and get a large mocha as their freebie if you let them. They'll proceed to do the same thing with every card. They'll also get mad if you get smart and change this policy, so do the right thing from the start. Something that works for us is to mark their card with usual drink after the first couple. Print your free drink policy on the card too, so there aren't questions.
Consider your COGS very carefully. A "buy 10 get 1" is a 10% discount for all of your regulars. If you can make that work and think it will draw customers back, go ahead. I'm not sure many here think it'll be the big draw you are hoping for though.
For the record, you asked for our ideas and experience. The suggestions so far to avoid doing a card reflect both, and are not just idle speculation.
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Permalink Reply by Mike McGinness on
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I remember an incident from early this year when we did away with punch cards at our downtown location that cleary reflects how the cards don't really necessarily work. I'll prefice this by saying we were doing punch cards because they had them when we bought the place a year prior. Anyway, about 4 months after they'd been discontinued a "loyal customer" comes in as a couple and orders a couple beverages. At the register they present their punch card with one punch left. My barista tells them sorry, we quit using punch cards end of December (four months ago) They get livid, barista lets them have one of the two free and they all happy now and comment, where is the roaster that was here last time we were here? I'd moved my roaster to a larger location 16 months previous! Not exactly a "loyal" regular customers....
And I'll be going through taking away punch cards ago very shortly at our Beaverton location. I'll use the same type of approach and explanation, all true. One being we have a choice, raise prices or quit giving away 10% of our beverages. The vast majority understood at our downtown Vancouver location and sure most will in Beaverton, though they'll always be some that snivel. Same ones who snivel about anything and everything.
Considering offering an alternative. Maybe like 10% discount when purchasing a personal use Gift Card, Card good not only for beverages but bean, pastries, mechandise whatever too. Thinking about staggered percent off depending on Card value purchased like 1% off per $10 value MAXing at 10% for $100 card or above. Think could be a win-win way to soften taking away the punch cards some have known at this location for over a decade, they get up to 10% discount and we get improved cash flow.
Brady said:Hi Oliver,
We do a loyalty card, but really wish we hadn't. Consider your decision carefully, it is easier to give than to take away.
The "chance to hook them" doesn't work that way. We tried. They'll fill the card up with small coffees and get a large mocha as their freebie if you let them. They'll proceed to do the same thing with every card. They'll also get mad if you get smart and change this policy, so do the right thing from the start. Something that works for us is to mark their card with usual drink after the first couple. Print your free drink policy on the card too, so there aren't questions.
Consider your COGS very carefully. A "buy 10 get 1" is a 10% discount for all of your regulars. If you can make that work and think it will draw customers back, go ahead. I'm not sure many here think it'll be the big draw you are hoping for though.
For the record, you asked for our ideas and experience. The suggestions so far to avoid doing a card reflect both, and are not just idle speculation.
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Permalink Reply by Mike Spence on
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Mike, this is interesting and one of the new ways that people are using these Gift / Reward cards. By the way, I personally prefer marketing the card as a reward card instead of loyalty card as that is the intention when using it in that manner.
Your idea of the discount when putting money on the card is one that is gaining traction with some of my customers. In this way you are not de-valuing the product directly. I have a number of customers that have done away with punch cards or point systems and moved to "buy $50 and get $55"
Using the cards to help generate cash flow is a great way to do it.
Mike.
Mike McGinness said:I remember an incident from early this year when we did away with punch cards at our downtown location that cleary reflects how the cards don't really necessarily work. I'll prefice this by saying we were doing punch cards because they had them when we bought the place a year prior. Anyway, about 4 months after they'd been discontinued a "loyal customer" comes in as a couple and orders a couple beverages. At the register they present their punch card with one punch left. My barista tells them sorry, we quit using punch cards end of December (four months ago) They get livid, barista lets them have one of the two free and they all happy now and comment, where is the roaster that was here last time we were here? I'd moved my roaster to a larger location 16 months previous! Not exactly a "loyal" regular customers....
And I'll be going through taking away punch cards ago very shortly at our Beaverton location. I'll use the same type of approach and explanation, all true. One being we have a choice, raise prices or quit giving away 10% of our beverages. The vast majority understood at our downtown Vancouver location and sure most will in Beaverton, though they'll always be some that snivel. Same ones who snivel about anything and everything.
Considering offering an alternative. Maybe like 10% discount when purchasing a personal use Gift Card, Card good not only for beverages but bean, pastries, mechandise whatever too. Thinking about staggered percent off depending on Card value purchased like 1% off per $10 value MAXing at 10% for $100 card or above. Think could be a win-win way to soften taking away the punch cards some have known at this location for over a decade, they get up to 10% discount and we get improved cash flow.
Brady said:Hi Oliver,
We do a loyalty card, but really wish we hadn't. Consider your decision carefully, it is easier to give than to take away.
The "chance to hook them" doesn't work that way. We tried. They'll fill the card up with small coffees and get a large mocha as their freebie if you let them. They'll proceed to do the same thing with every card. They'll also get mad if you get smart and change this policy, so do the right thing from the start. Something that works for us is to mark their card with usual drink after the first couple. Print your free drink policy on the card too, so there aren't questions.
Consider your COGS very carefully. A "buy 10 get 1" is a 10% discount for all of your regulars. If you can make that work and think it will draw customers back, go ahead. I'm not sure many here think it'll be the big draw you are hoping for though.
For the record, you asked for our ideas and experience. The suggestions so far to avoid doing a card reflect both, and are not just idle speculation.
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Permalink Reply by Shadow on
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We do plan to slowly change it over time, such as going to a buy 6 or 7 get 1 free system, etc. Just waiting for the current cards to run low so we can re-design/order more. At that time we will happily tell card users we decided to up the number because we were giving too much away... Straight and simple! We are fairly new to this business, but not dumb at it by any means. Have made lots of changes to minimize waste/freebies over the last 6-8 months.
Yeah Bryan you are wrong to assume "it isn't being monitored properly" as we track every freebies, all waste down to the penny in most cases.
Will also tell you how well our weekday special is going... from 12-3 pm on weekdays customers can get a hot/iced 12 oz. latte for $1. Started that several months ago because there was a lull in that time frame for our area. Yeah that's almost giving it away, but that special has drawn in what were first time customers and now they are regulars paying full price most of the time because they stop by when they have a craving regardless of time/price.
To be honest, what I find amusing on this forum is that the most obnoxious comments usually come from those that simply work for others and don't own/operate jack $HIT. Most "baristas" just go with the flow, usually not giving a crap about customers/repeat business because nothing is coming out of their pockets. In this economy you have to be creative because people need to feel like they're getting a deal on something because free/cheap is kinda rare.
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Shadow said:... To be honest, what I find amusing on this forum is that the most obnoxious comments usually come from those that simply work for others and don't own/operate jack $HIT. Most "baristas" just go with the flow, usually not giving a crap about customers/repeat business because nothing is coming out of their pockets. In this economy you have to be creative because people need to feel like they're getting a deal on something because free/cheap is kinda rare.
Lots of contributions to this discussion from people that either own or manage shops here. Who exactly are you talking about?
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Shadow said:We do plan to slowly change it over time, such as going to a buy 6 or 7 get 1 free system, etc. Just waiting for the current cards to run low so we can re-design/order more. At that time we will happily tell card users we decided to up the number because we were giving too much away... Straight and simple! We are fairly new to this business, but not dumb at it by any means. Have made lots of changes to minimize waste/freebies over the last 6-8 months.
Yeah Bryan you are wrong to assume "it isn't being monitored properly" as we track every freebies, all waste down to the penny in most cases.
Will also tell you how well our weekday special is going... from 12-3 pm on weekdays customers can get a hot/iced 12 oz. latte for $1. Started that several months ago because there was a lull in that time frame for our area. Yeah that's almost giving it away, but that special has drawn in what were first time customers and now they are regulars paying full price most of the time because they stop by when they have a craving regardless of time/price.
To be honest, what I find amusing on this forum is that the most obnoxious comments usually come from those that simply work for others and don't own/operate jack $HIT. Most "baristas" just go with the flow, usually not giving a crap about customers/repeat business because nothing is coming out of their pockets. In this economy you have to be creative because people need to feel like they're getting a deal on something because free/cheap is kinda rare.
I think Bryan's assumption came from his understanding that 50% or higher COGS on drinks isn't profitable for most operations. This is about what a "buy 5 get one" translates to. The only rational explanation was that you hadn't run the numbers yet. I was pretty bewildered by this as well.
Maybe since you run a mobile operation your cost structure is enough different that this is doable? If that is the case, brick-and-mortar operators ought to take note before deciding to try something similar.
This approach differs from a "dollar latte" promotion in that you can discontinue specials any time. Promotions are by their nature a limited-time thing. A loyalty card program is perceived as permanent, an entitlement. Modify with care, discontinue at your peril.
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What I find funny is that I co-own a roastery, 3 cafes, a training lab and a wholesale bakery division and I'm 22 years old. Hilarious. Way to judge, though.
If moving people through the door whether you make money or not is your idea of advertising that's awesome, it's just not mine. That is very specifically why I said "I'm not trying to attack" and also "I could be wrong, I guess" and also "again... just the first thoughts that come to my mind."
Do customers get a stamp when they purchase a $1 latte? If so, you are now not only NOT making money on the latte, you are also pretty much running a buy one get one operation. Lots of foot traffic without profit isn't a long term solution.
My intention wasn't to try to tell you how to run your business. I was simply surprised that your business was maintaining operational costs with a model such as yours. I'm sorry you misunderstood. The best of luck to you and your ideas and models. Free and cheap is rare because it either turns into a McDonalds look alike or closes doors. I've tried to run 4 different cafes before this one that all closed their doors due to trying to do things "cheap." The most successful shop I have set up never used a loyalty card from the start and it now grosses over $5,000 a day. If you succeed in your model you'll be a trailblazer where countless others have failed before you and to that I would commend you for sticking to your guns when others (admittedly, like myself) told you it couldn't be done.
-bry
Shadow said:We do plan to slowly change it over time, such as going to a buy 6 or 7 get 1 free system, etc. Just waiting for the current cards to run low so we can re-design/order more. At that time we will happily tell card users we decided to up the number because we were giving too much away... Straight and simple! We are fairly new to this business, but not dumb at it by any means. Have made lots of changes to minimize waste/freebies over the last 6-8 months.
Yeah Bryan you are wrong to assume "it isn't being monitored properly" as we track every freebies, all waste down to the penny in most cases.
Will also tell you how well our weekday special is going... from 12-3 pm on weekdays customers can get a hot/iced 12 oz. latte for $1. Started that several months ago because there was a lull in that time frame for our area. Yeah that's almost giving it away, but that special has drawn in what were first time customers and now they are regulars paying full price most of the time because they stop by when they have a craving regardless of time/price.
To be honest, what I find amusing on this forum is that the most obnoxious comments usually come from those that simply work for others and don't own/operate jack $HIT. Most "baristas" just go with the flow, usually not giving a crap about customers/repeat business because nothing is coming out of their pockets. In this economy you have to be creative because people need to feel like they're getting a deal on something because free/cheap is kinda rare.
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100% agree and disagree. Creative marketing is important, however the latter smacks of what I call "The Jiminy Cricket" syndrome, the World owes me. Why do you think people need to feel like there always getting a special deal rather than simply a fair exchange? (Other than mass media marketing has trained people to think this way for decades.)
Nothing, absolutely nothing, is free. There is always a cost paid by someone.
Cheap, not rare at all. There's lots of cheap everything out there including coffee. Cheap rarely equate to quality or value, usually get what you pay for.
Shadow said:In this economy you have to be creative because people need to feel like they're getting a deal on something because free/cheap is kinda rare.
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