Come for the coffee, stay for the company

  • Client leveraged in-store WiFi as a data capture platform
  • Designed highly targeted campaigns delivered via email, SMS
Come for the coffee, stay for the company

 

 
WITH the cafe culture enjoying a resurgence in popularity in recent years, there has never been a better time to be a coffee afficionado in Malaysia. Naturally, this also means that competition has never been fiercer – it has forced many cafe owners to get creative in devising ways in which to build long-standing relationships with both new and returning customers.

 
In this case study, a Malaysian cafe chain was able to do just that by adopting a WiFi-based Customer Relationship Management (CRM) solution from Tapway Sdn Bhd.
 
Challenges
Even though the client had devised loyalty programmes and in-store promotions to engage with and reward their customers, they encountered difficulties in generating sign ups or even creating a customer database for programmes. In addition to that, they couldn’t accurately deduce their customers' needs and wants based on their behaviour in their outlets – such as the time and amount of money spent there and how often they returned – which consequently resulted in less than effective promotional campaigns.
 
Come for the coffee, stay for the companySolution
By deploying a Tapway retail analytics solution in all their outlets, the client leveraged on their in-store WiFi as a data capture platform. The solution’s hardware detects and anonymises smartphone WiFi IDs, adds time and location data and stores them in the database. Tapway’s analytics engine then crunches the data into customer analytics charts and visualisation which the café owner can access anywhere, anytime.
 
The WiFi sensors also collect mobile device data, which is then processed through Tapway’s algorithms to understand customer shopping behaviour data, such as the number of walk-bys, visitors, new versus repeat visitors as well as a calculation on retention rates, visit frequency and recency, average dwell time of each customer, and dwell time distribution.
 
With this retail analytics solution, highly targeted campaigns can be designed and delivered via email and SMS. For example, customers are offered a 15% discount on cakes for their first time WiFi sign up. Or returning customers are offered a special 20% discount on coffee on certain days and times. Returning customers are also consistently updated on new product launches, aimed at keeping existing customers interested in the client’s offerings.
 
Business benefits
The Tapway solution generated a database of over 3,000 names in three months. This database also compiled such details including visitor demographics, number of visits, average dwell time and visit frequency.

After the client crafted and launched targeted campaigns based on this information, they were also able to measure the ROI for each campaign in incredible detail – such as the percentage of emails viewed and the percentage of coupons claimed. 

 

Overall, the client generated around RM1,800 per campaign representing a 3% revenue increase.
 
The future
The client has plans to launch even more such targeted campaigns. They are looking at rewarding customers visiting for the fifth time in the past 30 days, or sending a message to those exiting the café for the second time in one week. They will also be integrating the retail analytics solution with their Point of Sale (POS) system to enable seamless coupon claiming as well as incorporating sales data to the CRM platform.
 
Download the full case study here.
 
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