Hi Everyone,

For those of you that use a loyalty card for your customers, how do you run it? I mean do you have a sign or something letting customers know that their "freebie" is a coffee and not an extra large latte? or do you somehow mark on the card that they are buying latte's etc? We have just started this and there has been a great response and a sensible one (mainly just coffee) but I foresee issues at the counter without a policy in place. Any thoughts would be appreciated.

Views: 296

Reply to This

Replies to This Discussion

We bought our coffee shop in sept of 06 At that time the store was doing a punch card system byuy 10 get $1.50 off the next drink we changed it to buy 10 get 1 free right away. We upgrated our register system in june of 07 and went with a gift card/ Loylaty card and started to track what people get we realized very quickly that their were a few people that were taking advantage but they were outnumbered 10 to 1. We now have a small hand full of just brewed coffee drinkers and that is all they ever get. The rest have at least 5 of the drinks of each 10 are a specility drink. I still give a free drink to people when the mood strikes as a extra but this program beats the cost of running coupons or just putting ads in the paper. The advertising we get for going the extra mile is priceless. I currently have over 800 cards issused and growing every day. I don't think it has devauled my shop or drinks. On the day they get the free drink they also tip more than they normally would. The few people that take advantage or just a cost of doing business. Also my gift card/Loyality card system has no per card swipe fee it is all free after buying the cards. We also have about 10% of our gift cards that have never been used.

Jay Caragay said:
Can anyone actually show demonstrable results that really justify these cash outlays? Giving 10% or 25% away for free seems ridiculous since the Prime Rate is now below 4%. Driving down your prices to match those of the chains then giving away up to 25% of your revenue sounds crazy to me.
Awesome!

Kathy Fadorsen said:
We bought our coffee shop in sept of 06 At that time the store was doing a punch card system byuy 10 get $1.50 off the next drink we changed it to buy 10 get 1 free right away. We upgrated our register system in june of 07 and went with a gift card/ Loylaty card and started to track what people get we realized very quickly that their were a few people that were taking advantage but they were outnumbered 10 to 1. We now have a small hand full of just brewed coffee drinkers and that is all they ever get. The rest have at least 5 of the drinks of each 10 are a specility drink. I still give a free drink to people when the mood strikes as a extra but this program beats the cost of running coupons or just putting ads in the paper. The advertising we get for going the extra mile is priceless. I currently have over 800 cards issused and growing every day. I don't think it has devauled my shop or drinks. On the day they get the free drink they also tip more than they normally would. The few people that take advantage or just a cost of doing business. Also my gift card/Loyality card system has no per card swipe fee it is all free after buying the cards. We also have about 10% of our gift cards that have never been used.

Jay Caragay said:
Can anyone actually show demonstrable results that really justify these cash outlays? Giving 10% or 25% away for free seems ridiculous since the Prime Rate is now below 4%. Driving down your prices to match those of the chains then giving away up to 25% of your revenue sounds crazy to me.
A few years ago, the stat was that about $.15 out of every dollar spent on a prepaid card (loyalty and gift cards) was/were (?) never redeemed. That margin goes a long way toward mitigating the cost of the program itself. The tracking data is also a big gain.
I'm hoping to market my cards to the local college kids who can talk their folks into adding it to the cost of living...
It's better for a parent to have a pre-loaded card their kids use at a cafe / coffeeshop than cash that will go right into the local bar / liquer store!

Tim Noble said:
A few years ago, the stat was that about $.15 out of every dollar spent on a prepaid card (loyalty and gift cards) was/were (?) never redeemed. That margin goes a long way toward mitigating the cost of the program itself. The tracking data is also a big gain.
I'm hoping to market my cards to the local college kids who can talk their folks into adding it to the cost of living...

Reply to Discussion

RSS

Barista Exchange Partners

Barista Exchange Friends

Keep Barista Exchange Free

Are you enjoying Barista Exchange? Is it helping you promote your business and helping you network in this great industry? Donate today to keep it free to all members. Supporters can join the "Supporters Group" with a donation. Thanks!

Clicky Web Analytics

© 2022   Created by Matt Milletto.   Powered by

Badges  |  Report an Issue  |  Terms of Service