Nowadays, solely providing great customer service and a welcoming ambiance is not enough to keep customers coming back for more. According to the Pareto Principle, also known as the 80/20 rule, it is easier to get more business from current customers compared to new customers. The rule states that you can make 80% of your sales from 20% of your existing customers. To grow your repeat business, foodservice businesses should look to offer sales promotions, in addition to customer service strategies to effectively boost sales, customer satisfaction, and profits. Here are four simple ways you can increase customer retention.

1. Buy One, Get One

“Buy One, Get One Free” (BOGO) is regarded as the most popular type of sales promotion in many industries. As a two for the price of one deal, BOGO creates a sense of urgency amongst consumers due to its limited-time offerings. This promotion is designed to boost brand awareness, sales, customer engagement, and customer experience. Not only that but it helps clear out specific inventory to make room for new inventory. By creating BOGO campaigns during different times of the year, your business can highlight select product items and target a wide range of customers. Offering BOGO deals is a good opportunity to capture the interest of your current customers and have them try out more of your coffee selection. Customers who see this type of promotion will likely make more purchases and interact more with your brand. Not only that but your current customers may pass on the news to their connections, bringing more people into your shop. If they like your coffee selection, they will keep coming back for more – whether or not a promotion is happening. One important thing to keep in mind is that although businesses can utilize BOGO promotions at any time during the year, BOGO deals are best employed during slower seasons.

2. Coffee Happy Hours

Happy hours are not exclusive to nightlife. Establishing coffee happy hours in your café, coffeehouse, or restaurant is a great way to draw in both occasional coffee drinkers and coffee enthusiasts. When setting up a coffee happy hour, businesses should get creative with their happy hour offerings. Think about what types of deals and discounts you can present to your customers. Whether it’s a BOGO, 50% off all coffees, or a group promo, make sure to think about which happy hour promotion appeals to customers. Creating happy hours will not only give customers something to look forward to during the day but also enhance the potential for them to build a routine around the happy hour for repeat business. This will ultimately increase the sales and revenue of both your coffee and food items, and boost brand awareness. As you enhance customer experience with your coffee happy hours, you will be fostering customer loyalty and retention to your brand.

3. Digital Rewards Program

To increase customer retention, it is a good idea to incorporate a digital rewards program, such as digital stamp cards, in your operations. Digital stamp cards work the same way as physical stamp cards, except they are stamped via an app or POS system that digitizes a customer’s information and enables a touchless rewards experience. These loyalty tokens allow customers to earn free merchandise, discounts, or products after a certain number of purchases. For example, if a customer makes more than 10 purchases, they are eligible to get one free coffee drink of their choice. Many brands have incorporated digital stamp cards into their loyalty programs because it is a simple way to ensure repeat customers. In addition to this type of program being low-cost and easy to set up, it is straightforward and can pay off instantly. Digital stamp cards can inspire customer loyalty and retention because you are keeping them engaged, showing appreciation, and creating emotional connections. Incorporating digital stamp cards into your business operations is also a great way for customers to try out your coffee selection. Customers can come back and try the different flavors you currently offer, which will allow them to become more familiar with your brand.

4. Weekly, Monthly, or Seasonal Promotions

Weekly or monthly promotions are programs focused on a special deal or incentive for specific periods of time. Incorporating these types of promotions in your business is a good way to not only spice things up for your customers but also boost sales of products that are selling slowly. If you are looking to attract more customers to your business, these promotions are a great way to do so.

For example:

  • On Mondays, customers can get a free tart with a large coffee.
  • For the month of June, you can offer a discount on iced tea to cool your customers down.
  • During the fall season, you can offer seasonal drinks for a limited time.

Offering special discounts and perks regularly will help nurture your brand’s relationship with its customers and boost sales. Additionally, your business will be able to capitalize on consumer interest, entice customers to keep coming back for more, and generate buzz with potential customers.

Key Takeaways

As you strive to stay relevant in a saturated industry, you should think about successfully incorporating customer retention programs into your business operations to boost sales and customer loyalties. Gaviña Coffee Solutions offers a variety of high-quality coffees that can enhance customer retention. With a wide array of single origins, blends, and allied products, we can help you implement the right coffee solutions for your business that will satisfy your customers and keep them coming back for more.