Have you switched it up?

[Lovewell]

Hey there! We own a couple coffee shops and we have done loyalty the same way for years at this point. 

1 star per drink, 9 stars means you earn a free drink! 

We have toyed with the idea of doing more of a system where you earn so many starts you get a dollar amount off but might not be equivalent to a drink BUT it can be used on anything.

We are a little worried about pushback. Has anyone ever switched how they do loyalty? How did it go? 

[TheRealChipA · Accepted solution]

@Lovewell Oh yeah.  At first, I tried to get all creative with exciting rewards, things that would grab people's attention, etc.  In the end, it was complicated, confusing and not at all appealing.  I now think that most people like loyalty program that don't require a lot of thought, that just seem right.

When I switched to Square Loyalty, I totally simplified. They earn 1 point for every dollar in product sales.  For every 10 points, they get a dollar added to their discount bank.  That's it.  Sure, I have tier multipliers.  Sure, I have occasional promotions.  But the program is, in a nutshell, buy regularly and get an effective 10% discount all the time.  It can't be simpler.

It might have just been the relief of going from complex to easy, but my loyalty base went from around 500 enrollees to nearly 3,500 today.  Sure, a few griped about change, but most of them are still with us today.  Be honest about the reasons for your change.  Tout its benefits. Accept the fact that some people would rather die than have anything change in their lives.  Do what you need to do for your business and your sanity.  As long as it is fair, you won't go wrong.

[Lovewell]

Thank you so much for this insight!! 
Super helpful. 

[VanKalkerFarms]

I can't directly answer as ours isn't in Square but is $ based.  So for every $20 they spend, they get a punch, and once the card is full, which is 15 punches, they get $15 off.  I kinda really wish it was gone because, for example, that was a $25,980 cost, but people treat those cards like they are their babies, and in the end, that is a marketing cost, and it is around 2% of retail sales.  I think we could try simply phasing it out, where you can earn punches to finish established cards, but not earn new punches or something. 

I feel the simpler the program, the better, for sure.  I guess the best answer is What do the customers want?  I feel as a non-coffee drinker, the best and simplest would be the free cup every 10, as that is a pretty good reward to the customer with a fairly substantial profit margin in it that you can eat the 1 free.

[Lovewell]

Thank you so much for sharing!! Especially from a consumer stand point. 

I think we may keep it the way it is for now! 🙂 

[rtfulk]

I agree with @TheRealChipA  & @VanKalkerFarms , we keep ours really simple. We do Bows instead of star. Our loyalty program is like this 1.00 = 1 bow, 200 bows = 5.00. It’s simple and the customers love it and it is in line with other retail store offerings.

[Lovewell]

Beautiful! 
And if you were a regular at a coffee shop what do you feel would be a nice perk?