Loyalty program offers 523% conversion rate for local coffee shop

What if you could make a small investment in your business that resulted in a 523% conversion rate? That’s what happened when Cuba Life Kaffebar in Kristiansand, Norway implemented a very powerful customer loyalty program. The marketing strategy paid off, resulting in more return customers than ever before.

This exclusive coffee club has grown quickly and is incredibly easy to manage and operate, thanks to the loyalty program technology offered by Diller.

To calculate the conversion rate of 523%, we compared the amount of customers to the amount of subsequent visits. In other words, on average each customer who signed up has come back into the shop 5 more times. Thanks to the loyalty program, these customers came back and bought more time and time again.

About Cuba Life Kaffebar

Cuba Life Kaffebar is a specialty coffee shop and Cuban cigars boutique. It is run by José Corado and his family, who handle the product all the way from bean to cup. Located right in the heart of Kristiansand City, it’s a quiet and relaxing place to sip a cup of gourmet coffee and smoke a cigar.

It’s one of the oldest genuine coffee shops in the city and over the years it has gained a great reputation for quality coffee and a friendly, welcoming atmosphere.

The Problem

One of the biggest challenges the management team at Cuba Life Kaffebar faced was understanding the behaviour of their customers while on a limited marketing budget. They were looking for a way to understand the habits and behaviours of their patrons better.

With this information, the team at Cuba Life (led by José) could make improvements to increase the average number of visits and the amount of turnover per customer. They were seeking a solution that not only helps them sell more coffee and cigars – but to create a better experience for everyone who came into their coffee shop.

Although CEO, José Corado, wasn’t actively searching for a solution like Diller, he was immediately intrigued when Diller contacted him.

Diller is a program that makes it easy for any business to create a robust loyalty program. This allows small businesses (such as Cuba Life Kaffebar) to identify and retain their best customers. Investing in a loyalty program over time can result in more positive reviews, increased referrals and more purchases.

One of the biggest challenges the management team at Cuba Life Kaffebar faced was understanding the behaviour of their customers while on a limited marketing budget. They were looking for a way to understand the habits and behaviours of their patrons better.

The Solution

“When Diller contacted me I thought Diller would be a very useful tool for the coffee shop industry,” said Corado, “if you know how to read and understand the data.”

Diller works by inviting customers to become a member of the loyalty program and giving them access to benefits such as stamp cards and electronic coupons.

Corado decided to give it a try at Cuba Life Kaffebar. Diller provided him with a QR reader, which he connected to his computer at the till. He announced the new system with posts on Instagram and Facebook, as well as small brochures and in-person announcements in-store.

The Advantage

523% Conversion Rate
To calculate the conversion rate of 523%, we compared the amount of customers to the amount of subsequent visits. In other words, on average each customer who signed up has come back into the shop 5 more times. Thanks to the loyalty program, these customers came back and bought more time and time again.

Compared to the average results from advertising on social media, this rate is extremely high. According to Adweek, the average conversion rate of social media traffic is a paltry 0.71%. Search engine traffic comes in at 1.95% and email is 3.19%. When it comes to encouraging customers to keep returning, Diller offers the best return on investment.

Compared to the average results from advertising on social media, this rate is extremely high. According to Adweek, the average conversion rate of social media traffic is a paltry 0.71%. Search engine traffic comes in at 1.95% and email is 3.19%. When it comes to encouraging customers to keep returning, Diller offers the best return on investment.

Faster Service

One of the main practical results Corado experienced was that he was able to serve his customers more quickly.

“We can serve a customer at least one minute faster,” he said, “and that is very useful for rush hours.” (One minute might not seem like a long time, but it can really feel like it when you are on your way to work and you desperately need your caffeine fix.)

Plus, as Corado points out, those minutes really add up during rush hour and can make a big difference in the customer experience.

Not only will customers leave happy because they get their coffee sooner, but the cafe will also be able to serve more customers during busy times (and make more money).

A Feeling of Exclusivity

“I was able to create a “coffee club” for all our customers,” says Corado, “so they can feel that we can give a better and more personalised service to them.”

This feeling of exclusivity is a very powerful marketing tool. By creating this special “club” – Corado is able to make his customers feel like they are members of an important group. They are able to log into their profile so they can view their coupons and special offers.

Being a part of this group and having access to loyalty benefits also gives customers a boost of confidence. This fulfils a need for a sense of belonging – which creates a powerful emotional drive to make a purchase.

It also makes them feel as if they are “missing out” if they don’t take advantage of the offered perks.

Better Access to Customer Data

Corado also notes that Diller allowed him access to more information about his customers, so he could better understand their behaviour.

“Diller gives us a quicker way to identify customer behaviours and also can help us to reach them in a more personal way.” explains Corado.

Diller allows businesses to create segmented lists based on the registered data of their members. That way, businesses can create advertising that is more specific to one certain subset of their customers.

Diller gives us a quicker way to identify customer behaviours and also can help us to reach them in a more personal way, explains Corado.

The Results

Thanks to the loyalty program at Cuba Life Kaffebar, Corado is able to serve more customers in less time and encourage his best customers to come back again and again. Plus, he’s able to enjoy an incredibly high conversion rate at a fraction of what similar results would cost with social media advertising.

Software like Diller is ideal for small to medium businesses (such as restaurants, stores and coffee bars), who want to offer a loyalty program for their customers without a huge marketing budget.