How The Big Mug Cafe challenged big brand outlets & won!
A hole in the wall cafe run by Rashna Goswami implemented a rewards program to differentiate from competitors, attract new customers and establish long-term relationships with existing customers.
Introduction
The Big Mug Cafe, a hole in the wall place located in the bustling streets of Andheri is a brew-tiful cafe by Rashna Goswami. The cafe brings to life a complete coffee experience where people can seek refuge from the hustle of life and feel at home or get lost in conversations with friends and family. The staff and the owner’s immense love and passion make it an ideal place to grab a Big Mug of coffee or tea based on the plethora of options available.
Challenge
The Big Mug Cafe was a new and unknown brand surrounded by competition; a solution was required to help them stand apart and to retain their clientele.
The Big Mug Cafe had a traditional approach towards marketing; they believed that word of mouth and social media marketing was enough to help them stay ahead. The owners quickly realized that big brands surrounded them, and they couldn’t keep up with their marketing budgets and mass appeal. The brand required an immediate solution to help them stand apart and solidify their customer retention strategy.
Solution
A rewards program that enabled the brand to attract new customers and establish long-term relationships with its existing customers.
The owners realized that they had a tremendous task set ahead for them. They shifted their focus from acquiring new customers to retaining their existing customers. The brand had to think out of the box to establish a long-term relationship with its customers. Keeping in mind their new approach, Hashtag Loyalty introduced a reward program in integration with Pet Pooja. Customers could now earn points on every purchase and redeem them for big rewards at The Big Mug Cafe.
The program was a game-changer; it not only enabled them to track performance and bring new customers but also helped them to generate customer revisits with Hashtag Loyalty’s automated engagement cycle.
The owners impressed by Hashtag Loyalty’s automated engagement cycle, set up enticing rewards that worked wonderfully well for them. Automated triggers such as first visit, growth stage (third or fifth visit), VIP, at risk, lapsed, lost and birthday was set that made sure The Big Mug Cafe could personalize their engagement and bring back their customers.
Impact
Higher customer retention; the loyalty program kept the customers highly motivated to visit.
In the past year, 1218 customers returned at a rate of 29%, which surpasses the industry standards for cafes. These customers contributed to ~78% of the total revenue for The Big Mug.
The targeted auto engagement was vital to winning customers.
Hashtag Loyalty’s personalized automation messaging cycle has enabled the brand to generate over 300 revisits from 176 customers. This included upselling to new customers and bringing back at-risk customers that were lost or dormant.
Loyalty program is a compelling value proposition; customers prefer visiting brands that reward them.
The brand enrolled more than 950+ customers on to their loyalty program the last year — an increase of 43% from the previous year.
Our goal was simple; we need a tool that would solve our customer retention problem and attract more customers. Hashtag Loyalty has helped us do precisely that. In essence, the integrated loyalty program has helped attract new customers, and their personalised automated triggers have brought back lost customers to The Big Mug Cafe.
- Rashna Goswami, Owner at The Big Mug Cafe
There are over 1500 businesses that utilize Hashtag Loyalty to stay connected, engage with and bring back their customers. Reach out to us at sales@hashtagloyalty.com or call us on +919019083344.
