Fostering Customer Retention:
Creating a Loyalty & Rewards Program for cofipass
Overview
cofipass is a DTC marketplace that allows users to discover new workspaces, reserve tables tables, and earn loyalty & rewards at independently owned coffeeshops across the US.
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Launched officially in March of 2023, cofipass primarily serves the Austin marketplace and has over 300 users to date.
Design a loyalty and rewards program cofipass
1.O Comparative Research
To build a successful loyalty and rewards program, I first researched the types of loyalty programs and which companies were the clear winners of loyalty and rewards today.
1.1 Starbucks Loyalty
Starbucks' loyalty and rewards includes two parts -
1) the offer builder
2) the offer optimization
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Both of these parts are part of Formations's Dynamic Offer Optimization Platform
The Starbucks app, a popular platform for managing loyalty rewards and making purchases, offers a range of features designed to enhance the customer experience.
However, upon closer examination, it becomes apparent that certain aspects of the app's user interface fall short of optimal functionality.
This critique aims to shed light on two specific issues that undermine the overall usability and convenience of the Starbucks app.
Inefficient star redemption process:
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The redeem button fails to directly convert accumulated stars into rewards, forcing users to navigate additional options, causing confusion and frustration.
Inconsistent button placement:
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The redeem button is positioned on the left side of the screen, while the checkout button is on the right, leading to user oversight and a deviation from standard placement conventions.
1.2 Sephora Loyalty Program
Sephora's strengths lie in it's emotional perks, inclusivity, tier based program, and community
Sephora's loyalty program excels in leveraging its tier system, offering unique privileges, and presenting an exclusive shopping experience, cementing its reputation as a preferred choice for makeup enthusiasts.
The rewards program enables users to redeem points for a diverse range of items available in the rewards bazaar. These items are categorized into two groups:
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Staple products: These are well-established products that hold consumer loyalty and have been a consistent part of the brand's offerings.
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New products: Brands utilize the rewards program to promote or introduce new products to the market. Users have the opportunity to explore and select from these emerging offerings.
The rewards bazaar provides users with the flexibility to choose from various brands and types of rewards, catering to different preferences and interests.
1.3 Research Findings
2.0 User Flows
To implement our research findings into the current cofipass user flow, I needed to map out the existing flow and identify suitable areas for integrating a loyalty and rewards system, considering resource constraints. This assessment will guide us in determining feasible implementation points that align with our available resources.
2.1 Current User Flow
The following flow highlights where cofipass can initiate the integration of loyalty into the existing user flow. Currently, cofipass does not track or accumulate loyalty based on user spending. In order to implement a rewarding system, cofipass must start collecting data on users' spending during their cofipass work sessions. This data will serve as the foundation for rewarding users based on their spend.
To initiate the redemption flow, users must begin at the profile page. Initiate the redemption flow by clicking redeem. The user then selects which reward they would like to redeem out of the available option to them. The user clicks continue and is then notified to show the barista the pop up window verifying beans will be deducated
2.2 Future State
In addition to mapping the current cofipass user flow, I have also outlined a future state of the loyalty and rewards flow, incorporating a more robust tech stack. This enhanced tech stack will enable a more comprehensive and efficient implementation of the loyalty and rewards system, allowing for improved tracking, analysis, and rewarding of user activities within cofipass.
3.0 Low Fidelity Wireframe
Based on our research findings, we have developed a rewards accumulation system where users earn 1 cofibean (currency on the cofipass app) for every $1 they spend. This approach ensures a straightforward and transparent loyalty program, directly correlating users' spending with their rewards. By implementing this system, cofipass can incentivize and reward users for their engagement and spending within the app, enhancing user satisfaction and encouraging continued usage.
4.0 High Fidelity Wireframes
5.0 Final Design
