7 Brew's loyalty program is designed to create human connections. | Photo: Shutterstock
Coffee giant Starbucks has one of the most popular restaurant loyalty programs. More than 34 million people use Starbucks Rewards, and Starbucks Rewards accounts for nearly 60% of the chain's sales, making it the best performer in the industry.
However, the much smaller 7 Brew has a larger chain beat. And it's not even close.
In fact, nearly every customer who stops by the 217-store drive-thru beverage chain for a coffee is a member of its loyalty program. The chain says a whopping 92% of 7 Brew's transactions come from known guests.
That's because everyone who comes in “in droves” is greeted by an employee and asked for their phone number before taking their order. That's right, they are loyalty members.
Of course guests can say no. But “there's really no reason to opt out,” said Chief Financial Officer Nicole Miller Regan. When a user visits the store, the program works silently in the background to provide a better experience and even gives him a free coffee for every 10th visit.
There's no accompanying mobile app, and 7 Brew doesn't use phone numbers to send promotional texts to its 3.4 million loyalty members.
Regan said these features will eventually be implemented. But for now, 7 Brew is very happy with the results of their decidedly minimalist program, and the reason it's working so well is in part because it's integrated into their operations. When a frontline employee enters a customer's number, they can retrieve that person's order history (assuming they are a returning customer). The employee can then ask if you would like to order the same thing as last time or redeem a free drink if you have one.
The simple interactions are designed to create personal moments for both customers and employees, Regan said. “Rather than having someone go through the LSR or QSR ordering process, using a phone number allows more time for interaction,” says Regan. “It gives us more of a human connection.”
That's important to Fayetteville, Arkansas-based 7 Brew. 7 Brew's mission is to foster kindness, and we're proud of our Brew Crew, a group of fun-loving, close-knit employees. Even its restaurants are designed to encourage interaction. Customers order from a person rather than a speaker box, and drinks are delivered walking out the door rather than being handed out the window.
This approach helped 7 Brew become the fastest-growing large restaurant chain in the country last year. According to Technomic data on the top 500 restaurant chains in the United States, the company's system sales increased by more than 267% and unit sales increased by his 350%.
The phone number system gives 7 Brew another way to achieve its people-first identity. On a more practical level, Regan said the reorder feature also simplifies order entry and increases speed and accuracy.
Loyalty programs are becoming increasingly popular in restaurants because they are an important source of customer data. According to the National Restaurant Association, 61% of limited-service restaurants plan to invest in a loyalty program this year.
The challenge is getting people to register and participate. 7 Brew seems to have solved that part, and the result is a treasure trove of customer data. But there's no need to rush to turn that information into marketing materials. Instead, just listen and learn.
“Instead of telling the community how to use your brand, it's about listening to your customers, interpreting and understanding it, and becoming the best version of yourself,” Regan said.
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