This case study shows how Costa used Customer insights to transform the business via product development, loyalty schemes and marketing campaigns.
Based on research findings that 10% of overall coffee customers made up for 50% of Costa visits, Costa introduced the loyalty card Costa Coffee. Costa now has more than 6 million loyalty cards in circulation just 18 months after launch. The loyalty programme was designed also based on the insight that UK shoppers prefer points collection schemes, such as Nectar and Boots Advantage Card.
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Brand: Costa Coffee| Sector: Food and Beverages| Format: Customer Insight
The research also showed convenience of location was important justifying the opening of 145 new stores in first half of 2011. Based on customer insights, research and analysing gaps new products like Costa Light developed aimed to people who want to avoid caffeine or watching weight.
The use of customer insights for business development has led to a 22.8% rise in total worldwide sales over 6 months till August 2011.
“When someone becomes a card holder, their frequency of visits and spends-per-transaction increases.” – Jim Slater, Marketing Director at Costa Coffee
“We’ve combined our instinct with insight. I can’t even count the amount of times in the last three years that we have changed the business for the better based on insight.” – Jim Slater, Marketing Director at Costa Coffee
