Peet’s Coffee was looking to expand its Peetnik Rewards loyalty program to all 240 stores following a beta test period, but needed a more reliable platform. By partnering with Paytronix, the chain got a more stable platform, along with a bonus: detailed data about program members’ activity, which has translated into valuable marketing insights and measurable benefits.
The chain moved its loyalty and stored value program to a SaaS platform from Paytronix. Within six months after a July 2017 chainwide rollout, Peet’s had achieved:
- 350% increase in Peetnik Rewards membership;
- 1.5% jump in retail comp store sales resulting from a top-performing offer;
- 47% increase in the percentage of overall transactions by loyalty program members (loyalty check penetration); and
- 47% of total gift card growth driven by Peetnik Rewards digital gift cards in 2017.
The new system enabled Peet’s to improve one-to-one engagement with customers and increase overall sales and revenue. For example, using a “check-in challenge” campaign, select customers were motivated to increase weekly visits, from three up to four or five times per week. As a result, Peet’s saw double-digit lifts in customer visits and spend that were sustained even after the campaign ended.
In a different campaign, a Paytronix feature that allows retailers to easily add factors to campaign analysis helped Peet’s gauge the impact of a cold brew offer. Peet’s could see the lift from the specific item, but executives also wanted to see if the entire category was lifting — not simply switching the same buyer from one specific menu item to another. Peet’s executives could log into the merchant interface and view the cross-menu item impact of the promotion.
Overall, the Paytronix solution has given the Peet’s team a deeper understanding of customer behavior….