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Thread: Cafe loyalty and pre-pay schemes

  1. #1
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    Cafe loyalty and pre-pay schemes

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    I just read a tweet from one of the better Melbourne CBD cafes (Black Velvet) announcing a pre-pay scheme. If you pre-pay $25, they give you 30c off each coffee.

    For regulars there it seems like a great idea, and I guess they're both hoping to retain their regular customer base and increase custom from local but irregular customers.

    So it got me wondering, what do other cafes do to attract customers, other than the obvious of pumping out great coffee?

    I suppose loyalty cards work to an extent, but I don't see them being used extensively in many cafes.

  2. #2
    Coffee Newbie okitoki's Avatar
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    I've seen a cafe using customer's smartphone as another way of keeping count of coffee instead of stamping loyalty cards.

    Much easier and quicker

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    Senior Member mwcalder05's Avatar
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    Text 4 Coffee works well for regulars and non regulars. Just download the app and search for cafes around you and use your coffee credit to purchase your takeaway coffee. You can even schedule your order!

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    The strangest loyalty card I've seen is a cafe in Sydney that has numbered cards, 1-8. Buy one coffee and they give you a number 1 card, when you buy your next coffee they switch it for a number 2 card, etc.

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    Senior Member Journeyman's Avatar
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    For me, what brings my loyalty is the barista remembering how I like my coffee without needing to be told over and over. Same as any hospitality I guess, if you walk in and the staff know you, you tend to go back more often.

    There was a guy called Stuart who used to make me coffee at a little shop in an arcade near the Spencer/Collins corner - I could walk in and stand patiently at the back of a queue and he'd call me forward to pick it up before my turn had come. Consistent and just how I wanted it. Whenever staff wanted to go for coffee I would talk them into that place.

    I heard he went out to Oakleigh but never did find out where... le sigh...
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    Quote Originally Posted by Journeyman View Post
    For me, what brings my loyalty is the barista remembering how I like my coffee without needing to be told over and over. Same as any hospitality I guess, if you walk in and the staff know you, you tend to go back more often.

    There was a guy called Stuart who used to make me coffee at a little shop in an arcade near the Spencer/Collins corner - I could walk in and stand patiently at the back of a queue and he'd call me forward to pick it up before my turn had come. Consistent and just how I wanted it. Whenever staff wanted to go for coffee I would talk them into that place.

    I heard he went out to Oakleigh but never did find out where... le sigh...
    I agree; I love a good chat when I'm getting my coffee, and hospitality (in addition to excellent coffee of course) is critical for me.

    There is something about prepaid spending on coffee that doesn't sit right with me; it feels almost as if the cafe isn't confident that the customer will come back. Loyalty cards seem to be working well already.

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    Senior Member Dragunov21's Avatar
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    Makes sense, I think. I suspect part of it is that prepaying allows EFTPOS fees to be minimised. The retailer gets to front-load revenue and make savings on fees, and the consumer gets some of those savings if they want to prepay.

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    Senior Member Lukemc's Avatar
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    I'd like to be able to prepay coffees at my favourite cafe. I could use eftpos and then not worry about change/cash each day......

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    All of the coffee shops i visit in adelaide allow EFTPOS, with no extra charges and no minimum.

    Viva Espresso in Pirie St Adelaide, doesnt even ask for my name. they just say (your usual?)
    Kicco (also in pirie st) knows my order, my name and in general will make my order before they even take it.

    They both offer loyalty cards. Kicco stamps for 8 and the 9th is free. And the same applies to Beans.
    Viva stamps 9 and 10th Free.

  10. #10
    Senior Member Dragunov21's Avatar
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    Quote Originally Posted by ggoosen View Post
    All of the coffee shops i visit in adelaide allow EFTPOS, with no extra charges and no minimum.
    But they still pay EFTPOS charges (unless you prepay, in which case you save money too).

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    Who pays eftpos for a $4 coffee? Perfect way to get rid of your small change.
    Loyalty card schemes are not as popular here (in the Perth CBD) as they were a couple of years ago. At least, not in places that serve the best coffee. I think there has been a squeeze on pricing instead.

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    Senior Member Dragunov21's Avatar
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    With paywave becoming the rule rather than the exception, I use eftpos for pretty much everything. I rarely have change, just a twenty for the rare place that I need cash for.
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    Quote Originally Posted by Dragunov21 View Post
    With paywave becoming the rule rather than the exception, I use eftpos for pretty much everything. I rarely have change, just a twenty for the rare place that I need cash for.

    +1

    That coupled with the fact that there are no charges to use paypave. as well as the incentives from banks like ING, where you get 5% back on purchases, racking up 20-50 cups of coffee a month, it makes sense to use paywave

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    Has anyone seen an apps/initiative coupled together with the "Pay it forward" idea?

    Most of the coffee shops that i go to have the ability to "pay it forward" but there seems to a gap in the market relating to apps and ways to track that idea.

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    Quote Originally Posted by Jonathon View Post
    ...

    So it got me wondering, what do other cafes do to attract customers, other than the obvious of pumping out great coffee?

    I suppose loyalty cards work to an extent, but I don't see them being used extensively in many cafes.
    Customers like value so if your prepayment scheme offer value, it will work. 2 things customers will benefit from a prepayment program:
    1. Discount (for paying upfront)
    2. Pay once and don't have to deal with cash/changes 9 times later

    For your business, it means you have better cash flow, and don't have to deal with changes or payments as much so there is a bit of productivity increase there.

    There is a limit on how much a customer can prepay. They might want to pay $30 upfront for 10 coffees but might not want to pay $300 upfront. One thing to note is that a prepayment scheme does not promote further spending. So if they paid for 10 coffees, they might not to open the wallet and pay for the brownie.

    If you offer a point-based loyalty program, customers will be encouraged to spend more with you each time (instead of somewhere else) because everything they buy, they will get points for. You can offer a simple buy 10 get 1 free coffee program but you might as well offer a similar pre-pay program: pay for 10 upfront for a discount. They both are weak on promoting sales. Your cafe offer coffee along with 10-20 other products, why the loyalty program should be all about coffee?

    There is a Sydney-based company that offers mobile apps for both loyalty and prepayment (as well as CRM & EDM). So whatever scheme you want to offer, you can offer it quite easily. Shoppers don't need to worry about loyalty cards. Take time to think about what you want to achieve: cashflow, committment/loyalty, sales or all of them. You could offer both schemes: a prepayment for coffees and a point-based loyalty program.

  16. #16
    Sleep is overrated Thundergod's Avatar
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    Behmor Brazen - $249 - Free Freight
    I dont use coffee loyalty cards.
    My regular cafes keep me returning by making good coffee.



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