We all know customer loyalty and retention drive revenue, referrals, and really happy bosses. While it is important to attract new customers, you should definitely focus efforts on engaging existing customers. The old marketing rule is that 80% of your company’s future revenue will come from just 20% of your existing customers. Coffee Shop Manager’s SalesBuilder tool helps independent shops focus on customer loyalty and efficiently build their brand.
Over the past year, Hinee Gourmet Coffee in Helotes, Texas has been delivering not only delicious coffee, but also an awesome customer experience. Previously, owners Jeff and Mary Marsh were using punch cards and manually entering customer data into a spreadsheet to market their business. “With the card system, we had to do all of the work…punch the card, track the customer’s name, fill out the spreadsheet. It was really tedious,” says Jeff.
Since adding Coffee Shop Manager’s integrated loyalty marketing solution to their marketing arsenal, Hinee Gourmet Coffee has created their “Elite Member Club”. Since everything is now automated by SalesBuilder, Jeff and Mary are free to focus on the creativity and customer experience. “The response we have gotten from our Elite Member Club has been really outstanding”, says Jeff, “it has worked really well for us and is a really easy process to set up”.
Loyalty by the Numbers
We dove into the numbers to get a better idea of the influence SalesBuilder has had on Hinee’s bottom line. Since implementing SalesBuilder in January 2014, their ticket average increased from $4.99 to $5.33 and the number of transactions jumped 22%. Sales figures were up across the board over 2013, before SalesBuilder allowed Hinee to really focus on caring for their customers. With over 4,100 members in their Club and a 37% average redemption rate on their promotions, Hinee has turned SalesBuilder into a loyalty marketing hit.
SalesBuilder is a win-win solution for both shop owners and customers. “A big part of what customers love is that the customer does not have to carry an ID of any kind, we can just look them up with their name. They don’t have to tell us which rewards they have earned since it is automatically in the system. It makes it much better” states Marsh. Marketing is not one size fits all operation, something Hinee has learned while figuring out the best ways to bring customers back over and over again. “We don’t do the traditional advertising – newspapers, fliers, or radio. Ours is all word-of-mouth, social media, or our Elite Member Club.We reach out to people very specifically.”
Reap the Benefits
But what are some of the biggest benefits for coffee shop owners taking advantage of customer loyalty marketing? According to Jeff, “We like the fact that it is a point building program so that customers can continue to get their rewards as they continue to come back and spend money with us. That has been a real plus. We like the fact that we are not having to track everything manually like before.”
In addition to growing sales and your customer base, SalesBuilder makes running the shop just that much easier. When asked whether automating their marketing made running the business less stressful, Marsh replied “Without a doubt. For us it’s the ability to really interact with our customer. Having this system enables us to do just that, focus on that specific customer”.
Where to Start?
If you’re looking for a coffee loyalty marketing solution that allows you to grow your business while freeing you up to focus on the heart of your business – the customer – look no further. What advice would Jeff give to someone looking for this type of solution? “I would basically go down the list of what SalesBuilder offers. You need something easy, something that is fun for the staff as well as the customer, and something that allows you to be able to interact with the customer in the moment.” It doesn’t have to be complicated, either. “Ease of the system is the most critical. Having a simple yet effective program is vital.”
When you invest in a coffee shop marketing program like SalesBuilder, it is important to consider how you will use the tool to reach your customers. For Hinee, this investment helped contribute to an overall 42% sales increase over a year, using it to brew great customer interactions. “The loyalty program helps us grow by allowing us to touch base with customers on an ongoing basis and contact customers to bring them back into the shop more frequently than they normally would visit.”
The level of customizability gives shop owners the flexibility to leverage promotions, such as featuring their flavored coffees. By promoting a new flavor every week and sending messages to customers letting them know that week’s flavor, you can make sure customers are getting rewards they will enjoy. “We are able to go into the system and say this person drinks XYZ coffee so we can customize it for their taste.” Other promotions like a free or discounted coffee with the purchase of a baked good deliver value to their customer base.
Being the little guy in a world of large coffee competitors isn’t easy, but Coffee Shop Manager’s SalesBuilder tool can help take your shop’s marketing to the next level. Next time you’re in San Antonio, Texas, be sure to stop by Hinee Gourmet Coffee and get a taste of what coffee shop loyalty marketing can brew up.
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