loyalty card headaches...
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.
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.
Replies to This Discussion
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Permalink Reply by Fraser Jamieson on
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We no longer offer these; but, when we did, we had a line at the top of the card, just below the logo, where the cashier could print in what product the card was for.
There's a restaurant that I go to for lunch most Mondays; they have a card which offers a free lunch after 9 stamps; however, the free lunch is from the $8.95 special list. Still a good deal.
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Permalink Reply by Kathy Fadorsen on
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We have a lolalty card and we do not moniter what they buy or what they get free we just think it is good customer service. I used to go to a coffee shop before I owned one and would use their card I always got a large latte when I was due my free drink they told me I got a small coffee for free. I didn't take the coffee and I never went back. We do have a few customers who play that game buy small coffee get large latte but on the flip side we have converted some coffee drinks to latte drinks on a daily basis. The more they try a latte the more they want a latte.
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Permalink Reply by Chris Tellez on
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What we do is sell cards for specific drinks. If someone comes in and gets a latte every day then we offer them a card where they buy ten upfront, and then instead of using money every time they come in, they give us their card and we punch it. After ten, they trade in the card for one free. The biggest reason we started was because initially we didn't accept credit cards or debit. So it made sense for people to buy a card, as they often didn't have cash on them. This way works well however because there is little chance of fraud.
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Permalink Reply by Mike McGinness on
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No sign it's on the card. My "Coffee & Tea Club" card clearly says "buy 10 get 1 free (up to $3.00)". $3.00 covers up to an 8oz latte. If they want a large mocha no problem, ring $4.25 then discount $3.00. My "Whole Bean Club" card is similar, buy 10 get 1 free (up to $10).
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Permalink Reply by Bob Von Kaenel on
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We use different coffee cards for drip coffee and espresso drinks, and they're both clearly marked as such. We also have a card for smoothies & blended coffee drinks. Eight punches to get the free one, (just to be a little better than the competition who require nine or ten punches). Most of the time people will get their usual drink as the free one. Occasionally, someone will switch to a larger size coffee or add a flavor in the free latte but that's OK. Getting people to try something new is a good thing. It might get them to buy the larger size or the flavor next time.
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Permalink Reply by Brady on
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We clearly print it on the card, something to the effect of "get 1 of your usual for free". I don't have one on me, so don't have the exact verbiage. This is clearly easier with people that always get the same drink, but gives you a leg to stand on if they abuse the system. I agree with the idea of having them try something new... but after their 5th card they should get the idea?
Too many people don't quite get that the "buy 10 get one" is more than a 10% discount for your regulars. Your not just giving them the drink, you're shorting your register by that amount. That's if the freebie is the same as they filled the card up with. 10 medium coffees paying for a free 4 dollar mocha? Try 20% or higher discount... What WAS your margin again?
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Permalink Reply by Charles Lampard on
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I agree. I also do not tie the "free" beverage to what my customer usually buys. This is a loyality program and the breverage is not free it took $30-$40 worth of purchases to earn the free beverage. This is also an oportunity for my customer to experiment with a new or different beverage which often becomes an up-sale afterwards to a more expensive beverage. I am thankful for my customer's loyality and this is really a small way to say thanks.
Also, I manage my loyality program through a computer program. After I prepare their beverage and checking the computer I ask if they would like to spenda free one, more often than not they say yes. Whala, problem solved the complementary beverage becomes the same as usually purchased.
Charles
Kathy Fadorsen said:We have a lolalty card and we do not moniter what they buy or what they get free we just think it is good customer service. I used to go to a coffee shop before I owned one and would use their card I always got a large latte when I was due my free drink they told me I got a small coffee for free. I didn't take the coffee and I never went back. We do have a few customers who play that game buy small coffee get large latte but on the flip side we have converted some coffee drinks to latte drinks on a daily basis. The more they try a latte the more they want a latte.
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Permalink Reply by David Sierra on
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We haven't had any issues with our Loyalty program, and I don't think you will either. We offer ANY coffee drink ANY size after 10 drinks. Similar to the other comments you've heard, we have gain loyal fans of our coffee house because of this program. Several reasons: 1) It makes them feel good and shows great customer service from us, 2) it allows them to try something greater than a regular cup of coffee (which means "upsell"). You might have some customers that will take advantage, but many won't. You will gain more than you will lose. Go for it!
Note: Let the customer know that it is ONLY for coffee drinks and NOT for Smoothies or Chai Tea Lattes! :-D
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Permalink Reply by Jason Shipley on
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We do a free medium drink printed on the card. Our unwritten policy is the customers usual. I look at it as good marketing and customer relations if they order up on the menu I just figure maybe they'll really like it. Keep your COG's in line and you'll be able to afford to be generous with your customers. I know it sucks when you're just starting up but your best customers give good word of mouth it's just not worth alienating a customer over a couple of bucks.
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Permalink Reply by Jay Caragay on
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Loyalty Card - why?
Why did you instill a loyalty card program and what has it done for your business?
Personally speaking, I'm not in favor of a loyalty card. It's wasteful and encourages entitlement in your customers. Better to give them a free cup on you every blue moon than a loyalty card. It's a more personal way of showing your appreciation for their business.
Actually, if we used a POS, I would track the customers' purchases and base my complimentary cup off of that. Maybe set the system to note each time a customer had purchased 25 cups - better return on your investment. After doing a loyalty card for seven years, I think it's better to develop "loyalty" by offering a superior product in a nurturing environment.
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Nice, Jay. Less entitlement, more happy surprise.
So I've seen this in several posts now and have to ask. Could someone please explain how GIVING a regular medium drip coffee customer a large vanilla latte every other week qualifies as an "upsell"?
We used to do this, but found that very few changed their regular order... they just looked forward to their freebie and got the biggest thing they could on that day. Those that claim converting people over... what percentage would you say actually did this?
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Permalink Reply by Casha Garcia on
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We have a stamp card program and love it! Best of all our customers love it!
We have a lolalty card and we do not moniter what they buy or what they get free we just think it is good customer service. I used to go to a coffee shop before I owned one and would use their card I always got a large latte when I was due my free drink they told me I got a small coffee for free. I didn't take the coffee and I never went back. We do have a few customers who play that game buy small coffee get large latte but on the flip side we have converted some coffee drinks to latte drinks on a daily basis. The more they try a latte the more they want a latte.
Well said Kathy! We do the same! :)
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