Starbucks' Formula for Customer Loyalty
Starbucks recognized the major appetite for coffee and quick service among U.S. coffee lovers. By investing in creating a convenient and rewarding experience for their customers, they've been able to drive nearly all of their same-store revenue growth from digital relationships.
How did they achieve this growth? Embracing technology and creating this formula for growth:
In 2020, joe conducted a survey and found that 70% of Starbucks' mobile customers surveyed would switch to support local coffee with a similar app experience. With the right technology, independent coffee shops can harness this customer appetite and drive similar levels of revenue growth, all while giving their customers an experience that rivals Starbucks.
Digital Rewards & Gamification
Starbucks was the first to introduce digital rewards and gamification to the coffee industry with the launch of their Starbucks App and Starbucks Rewards. Their highly successful rewards program has played a key role in the company's growth over the years, using gamification techniques to keep customers engaged and motivated to earn rewards.
For many years, indie coffee shops couldn't compete, resorting to punch cards as an inexpensive way to create some type of loyalty incentive.
Joe Point of Sale, complete with loyalty and rewards, offers customers rewards on every purchase, whether in-person or digitally. Customers can participate in bonus challenge days, complete in-app challenges to reach certain milestones, and refer friends to earn more free drinks.
With a digital loyalty program like Joe Loyalty and Rewards, independent coffee shops can create an experience that rivals Starbucks. Ditching physical punch cards and upgrading to a digital rewards program drives repeat purchases and gives a boost to the bottom line.
Data-driven Automated Marketing
Gathering and understanding customer behavior through data is an important driver of customer loyalty for corporate coffee giants, who leverage that data to encourage repeat purchases. With a robust rewards program and millions of active users, Starbucks can glean powerful insights from their data and send personalized offers and promotions to drive even more customer loyalty and revenue growth.
With 5 times as many independent coffee shops in the U.S. as Starbucks, the right technology enables small businesses to harness this growth strategy too.
As the largest network of independent coffee lovers in the U.S., Joe brings the ordering behavior data of all our coffee customers across the network to your small business. Joe's data-driven automated marketing tailors specific marketing strategies to your shop and your coffee customers.
In fact, Joe Point of Sale partner Kristina Perez, owner of Soul Good Coffee shared that the personalized messages and automated re-engagement "is like having another full-time employee who is dedicated to promoting my coffee shop".
With the exact right message at the exact right time, powered by data driven automated marketing, indie coffee can thrive.
All-in-one loyalty experience
Starbucks has developed a strong brand that is based on a consistent and trustworthy experience, regardless of which location customers visit. Translating this experience to their loyalty program creates a sense of trustworthiness that customers can count on.
Investing in an all-in-one system, such as Joe Point of Sale complete with mobile ordering and rewards, creates the consistent and trustworthy experience customers crave. When customers are rewarded consistently for ordering in-person or when they order ahead for pick up, this encourages repeat purchases and drives revenue growth.
By learning from the success of Starbucks' loyalty program and implementing similar strategies, independent coffee shops can build a strong and loyal customer base, enhance the customer experience, and grow their business.
Learn why more modern coffee shops are choosing joe over generic loyalty and point-of-sale technology to streamline workflow, attract new customers, and better retain new customer.