It’s no secret that Americans run on coffee, with more than 150 million Americans drinking the productivity-enhancing beverage daily. For some it’s just part of the routine, for others it poses a cultural significance, but for the majority of coffee drinkers, it is a necessary part of their day. Especially when you consider that 49% of coffee drinkers would rather not touch their cell phone for a month than go without drinking their morning cup of joe!
With such high rates of consumption, it’s no surprise that there are more than 24,000 coffee shops in the US, that bring in a combined $12 billion dollars annual revenue.
Because of such high demand, the number of coffee shops is expected to increase by 50,000 in the next few years. With that amount of market saturation, having a rewards-oriented loyalty program (such as Loyalize can help support) can be a competitive advantage to acquire more of the market share.
While new customer acquisition is an important factor when it comes to increased revenue, it is also crucial to consider this staggering statistic: on average, repeat customers spend 67% more than first-time buyers.
With that being said, you may be asking yourself “how do you simultaneously increase customer acquisition and customer retention?” The answer is simple: rewards. Access Development, America’s largest discount network, studied customer loyalty trends and found that surprise offers and/or gifts are the best way to increase customer engagement. Look at Starbucks for example, a business that has not only survived through the pandemic but thrived. In Q2 of 2020, one of the hardest-hit economic depressions we have seen over a decade, they saw an increase in its active loyalty members by 15%. This trend did not stop there, in 2021 they saw a 48% increase in YoY active users within the previous 90 days and managed to add an additional 1,000,000 members to their loyalty program in Q3 of 2021 alone!
With staggering statistics like the above, the impact rewards programs can have in both corporate and independent coffee shops are evident. Loyalize’s API solution for cashback and rewards loyalty programs is an easy and effective way to stay competitive in this crowded market.
Thank you a latte for reading – pun intended!