Vida e Caffè- Case Study

The Challenge:

When Vida first launched their loyalty programme, it was purely card based. The concept of loyalty started as a marketing strategy to increase customer engagement and to attract a new target audience, whilst at the same time giving something back to loyal customers. But, the card system had its draw backs. Customers could not see their points immediately, and were often unaware of their cash-back balance, causing lower redemption rates. Cards got lost and it made the in-store experience a longer than necessary process.
This highlighted a great opportunity for Vida to improve their loyalty proposition.

The Solution:

Vida approached wiGroup to come up with a better solution to retain and grow their niched customer base. wiGroup’s Loyalty and Reward product was developed to change the way customers engaged with loyalty programs in a fresh, new way. With the built in mobile payment facility, the instant gratification that the app provides, over the card system is invaluable. Customers can see their loyalty balanace grow in real time, in the palms of their hands, and the user experience is fast and seamless. Customer’s can pay immediately, using either their accumulated cash-back or pay part cash, part loyalty cash-back. Creating less time spent at the till and allowing more customers to be served during peak periods, which in a grab and go coffee culture is crucial. It also allows Vida to gain valuable information about their consumers, so they can create campaigns focused around consumers spending patterns and shopping behaviour.

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The User Journey:

Customers simply download the Vida app, link their card, if they’d like to pay by card (optional) then earn points with every purchase. Once consumers are on the Vida app, the rewards are there from the start, as customers earn points, get to see their balance, pay by card, or redeem their points. They can even use their points to send someone a voucher. Customers are also updated with real time content and competitions. More importantly, it creates less time spent at the till and allows more customers to be served during peak periods, which in a grab and go coffee culture is crucial.

The Results:

Even though there are customers still using the physical card, the app has doubled the activity rate of the card. Today, 75% of all redemptions take place via the app. What has made the app so successful is the addition of foot traffic in store, higher frequency of spend, and Vida has reactivated or reengaged customers that were once customers and have now come back to Vida. Fast forward to today and Vida has one of the slickest, consumer, friendly mobile loyalty apps in South Africa with extensive functionality. In the 2017 South African Loyalty Landscape report, published by Truth, (an independent Loyalty programme expert), Vida has been named as the only coffee shop in the top 5 easiest to use loyalty program in South Africa.

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