What is a loyalty app for a coffee shop?
A loyalty app is a digital reward system that lets your coffee shop’s customers earn and redeem points through their phone.
Unlike the more “traditional” reward systems like paper stamp cards, loyalty apps mean your customers can collect rewards automatically every time they order. They can also track their progress toward rewards, receive special offers within the app, and stay connected with your coffee shop, all from the device they already use daily.
Why coffee shops benefit from loyalty programs
For coffee shops, loyalty programs offer a more organized and measurable way to grow your customer base, build customer relationships, and boost customer retention.
Many coffee shops rely on repeat customers to generate income, and a digital loyalty program (like an app) can help you achieve that. Deals and discounts encourage more frequent visits. More frequent visits mean one-time visitors become loyal customers. Loyal customers are more likely to tell their friends and family about your coffee shop — and spend more themselves.
Plus, a loyalty program also gives you, as the owner/operator, better visibility into your customers’ behavior. You can use your loyalty program data to discover what your customers like (and don’t like!) and which promotions have the biggest impact on sales. This helps you make smarter, more data-driven loyalty program decisions that can truly deliver the return on investment you’re looking for.
How a loyalty app works in a cafe setting
For your customers, using a loyalty app should be a simple process with only a few steps.
- Download the app — Make sure customers can easily find your app on their device’s app store, or in-store via a QR code.
- Make an account — Creating an account should be easy and fast, and should not require unnecessary personal information.
- Place a mobile order — Mobile ordering is often done on the go, so simplify the mobile ordering process as much as you can.
- Earn points/rewards — Don’t forget about sign-up bonuses! Immediate incentives can really help get new customers invested.
- Redeem points/rewards — Give customers a reason to come back with highly enticing offers and rewards that don’t take forever to earn.
…and that’s it. Customers shouldn’t have to give an excessive amount of personal information to create an account, or jump through a million hoops to start earning rewards. The easier you make the loyalty program process, the more likely customers are to actually use it.
For your staff, filling orders that contain special offers or rewards should be just as easy.
That means making sure your coffee shop’s POS system seamlessly integrates with your loyalty app — like how Craver’s app integrates with Square, for example. That way, you can ensure your staff members not only get mobile orders in real-time, but also start making them quickly, efficiently, and accurately.
→ See how the best of the best handle loyalty in our best coffee shop rewards programs blog!
Key features to look for in a great loyalty app solution
As you’re looking for your next loyalty app solution (or considering whether it’s time to upgrade), it’s important to remember that not all loyalty apps are built the same.
Here are the top features we consider non-negotiable when it comes to picking a great loyalty app solution for your coffee shop.
✔ Custom coffee shop branding — Show off your coffee shop’s unique branding for an instantly recognizable app that’s undoubtedly yours.
✔ Mobile ordering capabilities — Make it easy and intuitive to order directly in the app, earning rewards automatically without a second thought.
✔ Loyalty points and reward customization — Let your customers personalize their points and rewards, from free coffee to drink customizations.
✔ Push and in-app notifications — Keep customers in the loop on updates, news, and special offers that get sent directly to their mobile phones.
✔ Access to customer data and order histories — Access (and use!) the customer data you need to make your loyalty program the absolutely best it can be.
✔ Gift card capabilities — Help existing customers buy gift cards right in the app and share them with friends, family, and other potential new customers.
✔ POS integrations — Streamline the loyalty process on the backend by picking an option that integrates with your existing POS system.
✔ Easy backend management — Keep maintenance and backend management easy with an app you can adjust yourself, or have a team adjust for you.
In other words, the best kind of loyalty app is one with features that reward your customers and support your coffee shop’s day-to-day operations.
→ Need some loyalty app inspiration? Check out our blog on the 5 best local coffee shop apps.
What loyalty and rewards model is best for my business?
Not every reward system will be right for every coffee shop. However, there are a few high-level things that every coffee shop should look for when choosing a loyalty and rewards model, including:
✔ Can you add your branding to the loyalty program app?
✔ Is the model/program easy and intuitive for your customers to use?
✔ Does it seamlessly integrate into your existing ordering and POS systems?
✔ Does the loyalty app come with any support (and if so, what kind/for how long)?
✔ Can you create special/personalized offers to encourage repeat visits and purchases?
✔ Is the program/model priced appropriately to your coffee shop’s size/long-term growth goals?
If you can answer “yes” to these high-level features, that’s a good sign — but there’s still room to get more granular with the features and capabilities you’re looking at.
No matter how many high-level features a certain loyalty model offers, the details of your specific coffee shop will determine which loyalty/rewards model is best for your business.
If you have low foot traffic, for example, you may consider a referral reward system where existing customers refer new customers. That way, both customers get rewarded, and you get new foot traffic that you may not otherwise have seen. Or, if you have variable foot traffic and spend habits, you might consider a tiered model. That way, folks are incentivized to visit more and reach the next level.
Here are a few types of loyalty models and the kind of businesses they may work best for.
| Type of loyalty model | Best for | Possible results |
| Referral reward model | Coffee shops with low foot traffic | More foot traffic + reaching new customers |
| Visit-based model | Coffee shops with high foot traffic | Extra weekly visits + higher average order value |
| Tiered model | Coffee shops with variable foot traffic + sales | Higher average spend because of gamification |
Ultimately, different coffee shops have different needs for their loyalty and rewards programs, so only you can decide what’s truly best for your business and your customers.
Why coffee shop customers love loyalty points
There are tons of reasons coffee shop customers love earning loyalty points and participating in rewards programs… and here are just a few of them.
- Accessing special offers — Special, in-app-only offers are a great way to build exclusivity, making customers feel like they’re part of something totally unique.
- Feeling valued — A good loyalty program makes your customers feel seen, heard, and important. This goes a very long way for building customer relationships!
- Personalized experiences — Getting personalized offers or tailored recommendations makes customers feel like your business is paying attention and truly understands them.
- Saving money — Everyone loves saving money! Deals, discounts, and the occasional free drink go a long way in demonstrating your loyalty program’s monetary value.
Rewarding customers with loyalty points not only shows them that you truly value their patronage, but it also helps turn casual visitors into loyal customers.
Craver pricing and cost: what a coffee shop loyalty app costs
The cost of your coffee shop’s loyalty app depends on what kind of rewards you’re offering, how much it takes you to make your products, and the price you pay for your loyalty platform.
Here’s what that can look like with Craver.
Say your reward model looks like this:
- Guests earn 1 point per $1 spent.
- 30 points get them a free drink worth $5.
- That $5 drink costs you $1.25 to make.
And we’ll assume your coffee shop is doing $30,000 each month in revenue with a 72% gross margin.
That means every month, your loyalty program numbers look like this:
| Monthly cost of “free” drinks | $431 |
| Craver platform monthly fee | $99 |
| TOTAL COST PER MONTH | $530 |
Then, here’s what comes back to you if we assume a 15% lift in sales from the program:
| Extra revenue from more visits | $1,800 |
| Gross profit on that extra revenue | $1,296 |
| NET PROFIT | $766 |
So, what does a coffee shop loyalty app cost you with Craver? Based on these numbers, you’re actually making money.
Up front it will cost you $530 per month, but you’ll end up making it all back plus an extra $766. And that’s just based on this example, there are many different ways you can set up a rewards program. Check out our free calculator below to model how much you could potentially make based on your own coffee shop.
→ See how much a loyalty app could cost your specific coffee shop with our free calculator here.
Common loyalty app mistakes
As you’re working out the details of your loyalty app, there are a few common mistakes you’ll want to look out for to maximize the success of your new (or updated) loyalty program.
✘ Taking too long to reward customers — Special offers should take some time to earn (because you want customers to come back), but they shouldn’t feel impossible. Too much time between rewards means people lose interest.
✘ Giving away too much for your margins — Loyalty app rewards need to make financial sense for your coffee shop’s business model. If you give away more than your profit margins allow, you’ll lose too much money to keep it sustainable.
✘ Forcing a loyalty app that doesn’t “fit” — You may love the way a certain loyalty app provider looks or specific features it has, but if it doesn’t fit into your coffee shop’s workflow seamlessly, it’s not going to work the way you want it to.
✘ Not promoting the loyalty program — People won’t know about your loyalty app if you don’t tell them about it! Make it a point to promote the loyalty program everywhere, whether that’s online through social media or in-store with a tabletop sign.
✘ Not training every staff member on the app — Your entire team should be confident and well-versed in how your loyalty app (and loyalty program in general) works. That way, there’s always someone around to answer questions and do light troubleshooting.
→ Check out our blog on Starbucks rewards program lessons for more on what not to do with your loyalty app.
FAQs
Loyalty apps (and other digital loyalty programs) are usually more flexible and measurable than “traditional” formats like paper stamp cards. The paper stamp card is simple, but they’re easily lost, forgotten, and/or misused. With a loyalty app, your customers can easily and accurately track rewards on their phone while your business gets access to better customer data.
How much does a coffee shop loyalty app typically cost?
That depends on the platform, features, integrations, customization, and level of support. Some apps may also have setup fees and ongoing software costs, while others (like Craver!) only charge per month. The key here is to compare the app cost to the value of repeat visits, customer retention, mobile ordering, and stronger customer engagement. It’s definitely worth it!
What rewards work best in a cafe loyalty program?
The best, most effective rewards are simple, enticing, and sustainable. Think free coffee/free drinks, free baked goods, discounts after a certain number of purchases, personalized in-app discounts, and birthday rewards. None of these necessarily reinvent the wheel, but they’re impactful for customers (and they won’t break the bank for you).
Can a loyalty points app integrate with a coffee shop POS system?
That depends on the provider you choose. Craver, for example, integrates with Square POS systems, but other providers may not have the same capabilities. POS integration is key for a loyalty program because it makes it easier to track purchases and apply rewards, all while reducing the manual work needed from your staff.
→ Learn more about POS integrations and why they matter in this guide!
How long does it take to launch a loyalty app for a coffee shop?
Launch time depends on the app provider, level of customization, menu setup, integrations, and testing that your loyalty app requires. Craver, for example, can launch a loyalty app in 24 hours, while other providers may take more time (and offer less support). Make sure to ask your provider about time frames before committing to an app build!
Do customers need to download an app to join a coffee shop loyalty program?
Typically yes, but it depends on the loyalty platform. Digital loyalty programs like apps or digital stamp cards will definitely require an app download, while others may support web-based loyalty or alternative sign-up options (like using a phone number). Ask your provider about whether an app download is 100% necessary or not.
