Revolutionizing Coffee Shop Loyalty with Joe: A Smarter Approach to Rewards

Running a successful coffee shop involves more than just brewing great coffee; it's about creating a loyal customer base that keeps coming back. One of the most effective ways to foster this loyalty is through a rewards program.

However, traditional point-of-sale (POS) systems often place a heavy financial burden on coffee shop owners, who are left covering the cost of reward redemptions, which can amount to a significant percentage of their revenue.

At Joe, we've developed an innovative solution that not only makes rewards programs more affordable but also offers a Starbucks-like experience for customers across our network of over 1,000 shops.

Traditional Model vs. Joe's Approach

In traditional POS systems, coffee shops typically pay a monthly subscription fee for the service which increases as customer profiles are added , and they are also responsible for covering the cost of reward redemptions. This usually means implementing a system like "buy 10, get one free," where the shop absorbs the cost of the free item. Over time, these costs can add up, amounting to 10% or more of a shop's revenue. With joe, we charge 5% on every loyalty payment and use the pool of money to pay for reward redemptions so you never give away a free drink. 

Joe changes the game by pooling the cost of reward redemptions across our entire network. This means that instead of each shop being solely responsible for the rewards redeemed by their customers, the cost is shared equally among all participating shops. This allows us to invest in tech that engages customers with the right incentive at just the right moment to keep you top of mind when your customers are most likely to order their next drink.

These rewards are available to earn and redeem at the POS, Web, in the App and on the Kiosk (coming soon). Plus, you have full access to 100% of your loyalty customers and can send promo codes, loyalty card credits, create deals, and more to advanced customer segments based on coffee-specific ordering data - this isn't possible with other solutions. You can also export all loyalty customers for use in campaigns and marketing outside of the joe platform at no charge. 

A Unified Customer Experience

One of the standout features of Joe's loyalty program is the seamless experience it offers customers. Much like the convenience enjoyed by Starbucks customers, Joe users can earn points and redeem rewards at any coffee shop within our network. This flexibility is particularly valuable when loyal customers can't make it to their usual spot but still want to enjoy the benefits of the rewards they've earned at another local coffee shop.

By offering this network-wide redemption option, we enhance customer loyalty and encourage visits to different coffee shops within the Joe ecosystem. It's a win-win: customers get more value, and coffee shops benefit from increased foot traffic and sales.

Transparent and Predictable Costs

At Joe, we believe in transparency and fairness. Our approach to covering the costs of reward redemptions is straightforward: we charge a small fee on each payment that a customer opts into rewards (non opt-ins do not include any fee). This fee is designed to cover the costs associated with the rewards program, ensuring that all shops contribute fairly. Importantly, this fee only applies to payments that drive new revenue for your business, aligning perfectly with Joe's overarching principle of supporting our partners' growth.

Unlike other systems where you're on the hook for unpredictable costs related to reward redemptions, with Joe, you know exactly what you're paying each month. This predictability allows you to budget more effectively and focus on what you do best: serving great coffee and creating a welcoming atmosphere for your customers.

Rewards Structure 

Customers that add a loyalty balance to your card will effectively participate in a buy 10 get 1 free drink program. To further gamify the program, we allow customers to redeem smaller rewards earlier. With the average coffee shop ticket now at the $10 mark, we have updated the buy 10 get 1 free to be a spend $100 (10 X $10 ticket) and get a free drink.  Customers that opt-in, but don't load a balance earn at 1/2 the rate as those that do add a balance to your store loyalty card. Add a deal or layer on automated campaigns based on your customer segments to further customize your program. 

Additionally, to enable joe to keep your shop top of mind, we provide gamified bonuses to increase purchase frequency, virality, and conversion. With our updated model, we'll be adding more resources to these programs to make them more personalized, dynamic and effective. 

• Purchase Frequency: We rotate weekly bonuses to drive increased purchase frequency within the budget including Double Points Days, Thursday bonus for +50, and Saturday Bonus of +100 for ordering more than one drink in an order. 
• Virality: Additionally, we have a refer-a-friend promotion that rewards customers for recruiting their friends to your shop. 
• Conversion: We provide a budget to convert people to a first time purchase at your shop.

By managing these with our unique tech across the network, we leverage data scale to engage customers from the rewards pool to maximize spend while keeping costs at less than 1/2 what you'd typically pay.

Customers are able to access and redeem all loyalty related payment methods, balances, and redeem discounts via the Point-of-Sale, App, Web, and Kiosk (coming soon).