How Local Cafés Can Grow with Digital Loyalty Systems
With over 55,700 cafés and restaurants operating across Australia , competition is fierce. In Australia's vibrant coffee culture, where every street corner reveals a new cafe, earning repeat business is essential. Loyalty apps have emerged as a game-changing solution, offering customers a reason to return, while building a deeper connection with your cafe. Digital loyalty systems aren't just trendy tech—they're proven profit boosters that can transform occasional visitors into devoted regulars.
Slash Customer Acquisition Costs
It costs 5 times more to attract a new customer than it does to keep an existing one. Digital loyalty programs tackle this head-on by converting one-time visitors into repeat customers. Coffee shops that use Square Loyalty see 1.67 times more spend from customers enrolled in their loyalty program versus customers that aren't enrolled. Instead of constantly chasing new customers through expensive advertising, you'll build a base of regulars who return predictably, reducing your marketing spend while boosting revenue.
Gain Valuable Customer Insights
While that's hard to quantify with a physical punch card program, a digital loyalty program provides a wealth of data for your to analyse. With Square Loyalty, you can see the stats on your program members in your Square dashboard. You'll discover which products sell best, peak ordering times, and customer spending patterns. Coffee shops can also use the data from their loyalty programs to track customer spending, identify top-selling products, and curate special promotions or discounts based on spending habits. Since 42% of cafes identified the need to use data to better understand customers in order to stay competitive, according to the Square Future of Commerce report, loyalty program data can play a vital role in a coffee shop's success.
Keep It Simple and Contactless
When it comes to loyalty programs, simplicity is the key to success — you don't want customers to feel like they're applying for a credit card when all they want is to get a free coffee or muffin once in a while. That's why digital programs make so much sense. Gone are the days of paper cards; customers can now easily track their cafe visits right from their phones. Modern systems like Stamp Me or Square Loyalty integrate seamlessly with your existing point-of-sale system, requiring no complicated setup or additional hardware.
Getting Started
Seventy percent of people abandon loyalty rewards because it takes more than six months to redeem rewards. So if your customers feel like it takes forever for them to earn any loyalty rewards, they might just find another coffee shop where they enjoy more frequent benefits. Start with a simple "buy 9, get 1 free" structure and track your results monthly. Focus on making rewards achievable within 2-3 weeks for regular customers. At Coastal Programs, we help local businesses implement digital solutions that drive real results—from loyalty systems to complete digital transformations that keep your customers coming back for more.
