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In April 2017, Caffè Nero and Yoyo launched a unique payments and loyalty app to provide a seamless customer experience and give the UK’s third largest coffee chain the data tools and insight to better engage, reward and retain their customers.
Just one year on, the impact of the now award-winning app has been astounding, garnering a ton of praise from delighted Nero customers and astonished industry leaders alike.
And we’re so proud that the Caffè Nero app has vastly exceeded the targets that were set out this time last year:
In only 12 months, the Caffe Nero app has:
Caffè Nero has seen the astounding impact that a basket data-led mobile payments and loyalty strategy can have on a business, and we’re already started work with Team Nero to ensure these amazing results are blown out of the water by this time next year!
But for now, we’re going to take you on a quick journey to reveal how Caffè Nero and Yoyo achieved all this in such a short space of time..
Caffè Nero was looking to find new ways to enhance its customer experience and improve engagement and retention, – thereby giving the high street coffee giant a distinct edge on their competitors.
Before the project began, Caffè Nero could only track how frequently customers were visiting stores through its wifi service. “We knew nothing else about them,” said Marcus Denison-Smith, Head of Marketing at Caffè Nero.
Through a single mobile-led app solution, Caffè Nero wanted to enhance the payment and loyalty experience for its customers and at the same time gain real-time insight into customers’ buying behaviour and preferences, so they could understand, segment and reward customers based on their habits and preferences.
The app would also need to replicate and enhance Caffè Nero’s famous Blue Card loyalty programme.
Research suggested that coffee drinkers were losing an estimated 87 million loyalty cards every year, and at least 5 million Nero loyalty stamps were not being used. That equated to about half a million coffees going unredeemed.
As Marcus Denison-Smith explained:
“Caffe Nero’s loyalty card is a very popular mechanism that the brand has been using for the last 20 years, but it really wasn’t functioning as a marketing tool.”
Yoyo and Caffè Nero set about creating a branded app to provide loyal customers with a fast and personal experience, and Caffè Nero with insight into customer spend and preferences to drive footfall.
Yoyo had less than five months to create and launch a new Caffè Nero-branded app experience across more than 600 stores in the UK and Ireland.
Crucially, the app experience would allow Caffè Nero customers to instantly pay, collect and use stamps to redeem their well-earned free coffee in a single moment at the point-of-sale.
It’s at this key moment, when retailers engage their customers, that Yoyo is uniquely able to identify purchasing habits by obtaining individual basket data when customers use the app to pay for their items.
Through a simple transaction API, full stock keeping unit (SKU) level basket data can be accessed and analysed, revealing who each customer is, what they’re buying and when.
This would provide real-time and invaluable insights into customers’ buying behaviour and preferences.
For instance, Caffè Nero could analyse the type of customers who tended to buy a coffee before 8am or find out what items tended to be bought together.
With these data tools to hand, for the first time Caffè Nero could run a data-led and intelligent loyalty programme that could really drive customer behaviour by segmenting customers based on their purchasing habits and creating insight-led marketing campaigns.
In April 2017, the Caffè Nero app launched to market, and included:
By the end of launch day, the Caffè Nero app took the number one spot on the Apple App Store in the free food and drink category
Within only a few months of launching, Caffè Nero could see the full power of harnessing its basket data through various Yoyo-powered app campaigns, including a campaign to promote its iced drinks range.
With the aim of increasing footfall during a period of hot weather in the summer months of 2017, Caffè Nero created an app campaign through Yoyo that would instantly and frictionlessly reward customers with double stamps for every iced drink purchased through the app.
Just one week after the campaign launched:
Crucially, customers bought an iced drink, but they also bought other items they’d never bought before.
Owing to the success of campaigns like the iced drinks loyalty campaign, Caffè Nero launched a first-of-its-kind post-transactional Christmas marketing campaign to reward customers with digital Christmas Crackers every time they bought their usual hot drinks.
Between November and December 2017, every time a customer made a transaction on the Caffè Nero app, they received a digital Christmas Cracker and the chance to win tons of real prizes, including unlimited coffee for a year, a collection of limited edition Penguin classics, an assortment of gift cards, and thousands of golden Caffè Nero loyalty bonus stamps.
Not only was every app customer instantly rewarded through a simple and familiar mechanism, there were no third-party websites and no extra sign-ups – just a couple of taps on the screen and Caffè Nero customers were immediately rewarded at the point-of-sale.
In only one year since the Yoyo-powered Caffè Nero payment and loyalty app launched:
643 Caffè Nero stores now use the app in the UK and Ireland
.350,000 customers have downloaded the app since launch day
.20,000+ transactions/loyalty build handled through the app each day
8% share of checkout
.3.6 million transactions processed
5.7 million loyalty stamps awarded
.90% of transactions processed in under 2 seconds
“We’ve been overwhelmed by the positive reviews we’ve had from our customers. We’re trying to get closer to our customers and build better and longer-term relationships. The only we can do that as a brand is if we can connect with the customer and recognise them at the point-of-sale.
“Brands who don’t do that and continue to treat their customers anonymously will continue to fall behind.”
James Flett, Partnerships Manager at Caffè Nero