Loyalty/Rewards Cards and Specialty

Has anyone considered the tiered structure that some companies use like American Express?

That is, your most loyal customers (after spending X dollars) are platinum and receive coffee at a reduced amount, then it tiers down from there and your base price is for random customers who purchase just once and will not be loyal anyway.

In have never seen a cafe using this in action, but have considered it and wondered about it. I mean ultimately, I think it would be cool to get a silver card for a cafe I visit all the time and know that if I continue to go there I can be upgraded to a gold card and then eventually receive a platinum one. (Doesn’t have to physically be a card).

It is just a form of remarketing and is effectively a thankyou to the customers who use your cafe the most. Although it would devalue your most valuable customers I think it would help with customer retention and help to ensure they stay loyal customers within a crowded marketplace.

Maybe it would just be cool and from the buzz create more sales then you would gather without it? Either way, could someone do it and lemme know if it worked?
Anecdotally some major companies with super crowded marketplaces do it and it must work for them (surely they would have enormous resources poured into these programs to determine if they work and if not then they would scrap them).

All this in conjunction with trying to provide the best customer experience though. Nothing grows sales like great product and service.

I personally refuse to use loyalty cards. In a cafe I like, I want to give them my money, I don’t want to take a discount. I do see a lot of people using them. I think a move to an app on a phone is the way to go, though, rather than a piece of paper/cardboard.

We’re launching this within the next few weeks, I will give some feedback here when it’s launched :wink: