Dunn Bros Coffee understands the importance of driving customer loyalty.

Dunn Bros Coffee App“Our customers go to larger competitors because they have a significantly larger footprint in convenient, high traffic areas.” Says Laura Radewald, CMO of the 80-location Midwest coffee chain.  “When our competitors have a loyalty program, it’s a pretty risky proposition for us to not have one.”

For years, Dunn Bros tackled the challenges often associated with traditional loyalty programs- including user fraud, lack of customer insight and franchisee dissatisfaction.

“We are making great progress in helping our franchisees understand that a loyalty program isn’t discounting. You’re telling your most valuable customers that you value them. It’s different than plastering your store with giant sales signs” explained Radewald. “ An effective loyalty program, one that is personalized and relevant to your customers can actually build your brand up.”                                         

With traditional loyalty programs unable to deliver the desired level of personalization, Dunn Bros began seeking alternative solutions, ultimately finding one in mobile.

Partnering with mobile payments company LevelUp, Dunn Bros built and launched a custom loyalty app in September of 2013. With a built-in loyalty program tied to mobile payments, Dunn Bros has been able to drive better program adoption with complete insight into customer purchase behavior and ROI.

Within the first 60 days of their program launch, the first 4 locations to roll out the app were already seeing some impressive results. Dunn Bros was able to measure a variety of metrics through LevelUp, including:

  • Accelerated customer visitation patterns. Each time a customer unlocked a loyalty reward, they came back 12% faster to unlock the next one.
  • The average ticket price on purchases made through the Dunn Bros app increased by 10% over the first 60 days and was significantly higher than the average ticket price on purchases not made through the app.
  • 79% of customers who have paid with the app have returned multiple times.
  • The average customer made 11.5 transactions through the app.

“We couldn’t be more delighted by our app’s performance so far.” said Radewald. “It’s great to be able to share these results with our franchisees. To actually see the program working and tap into the customer insights the LevelUp platform provides has been very valuable.”

The Dunn Bros app is currently live at 50 participating locations with plans to complete their rollout over the next few months.

 For a full analysis of Dunn Bros’ program performance, including adoption rates, average ticket trends and more, you can review a complete case study here.