Costa Loyalty Card Case Study

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The Costa Club Card is a loyalty card for Costa customers, each time you buy food or drink there you collect points on your card, after so many points have been collected, rewards are available like, discounts or cups of coffee. For every £1 you spend you get 5 points on your card. Once registered online or in store, your card is valid for any store across the UK. (1) The Costa Card launched the commencing week of 29th August 2012 and allowed the 3 million members of its Coffee club to log into their account, update their details and check their balances so they are able to see what they can buy with their loyalty cards. The success of the Costa Coffee Club is the extent to which the card has enabled them to get closer to their customers. He says “We’re lucky that we are a brand people tend to like, but you can’t just sit back and take that for granted.” (6)
Costa launched the loyalty card in order to increase pressure on rivals like Starbucks and Café Nero. They also are more likely to get repeat customers if they know they are saving points and will get discounts. By signing up to the Costa Coffee Club Card it requires your email, from then they can take advantage of this and use promotional strategies. Not only have they
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5% of cardholders account for a large amount of money spent in the card, the card clearly has had a positive effect on the customers and the company itself. The campaign was as a whole successful, for the 1200 stores in the UK and 600 abroad (approx.) the company will definitely be benefitting from the club cards. The Costa Club Cards have attracted many more customers and many more customers would visit Costa over any other coffee takeout competitors. The card was a success because of how innovative the card and the whole process was: the card brings many advantages like attracting more visitors and more customers visit regularly in order to claim more

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