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Hexona Systems

Multi-location speciality coffee retail · Phoenix, Arizona

Three quarters of first-time customers never came back, and nobody knew who any of them were.

Eight speciality coffee locations across Phoenix, known for their roasts and their room, with a genuinely loyal following and a retention problem underneath it. The loyalty scheme was a paper punch card.

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Found before the build
3 in 4
3 in 4 first-time customers never returning
Result
$312,000
Revenue attributed to the programme
Window
Eight months

The situation

Around a third of those cards were lost inside thirty days, which meant a steady stream of replacement requests and disputes for staff to manage. Because nothing was recorded anywhere, the business had no idea who its best customers were, when anyone had last come in, or how to reach someone who had quietly stopped visiting.

What we found

  • Loyalty cards lost within thirty days~30%
  • First-time customers who never returned3 in 4
  • Customer records held anywhere in the businessNone
  • Staff time lost to manual punch tracking and lost-card disputes

What we built

  1. 1QR stations at every register for a ten-second signup, with the card delivered by text and no app to download, and 1,200 existing paper balances imported so nobody lost their progress
  2. 2A points structure simple enough to explain at the counter: a point per dollar, a $5 reward at a hundred points, and three tiers above that
  3. 3A free birthday drink with double points for the week, and referral bonuses on Tuesdays
  4. 4Automated re-engagement after fourteen days away, personalised on what that customer actually buys, plus morning reminders for regulars and promotions triggered by the weather
  5. 5A dashboard covering member activity, revenue per member against non-member, popular items by segment, and performance by location
  6. 6Staff trained on the whole system in under an hour

What changed

Measured before and after
MetricBeforeAfter
Retention rate27%68%
Average visit frequency2.3 per month6.7 per month
Average transaction$6.80$9.20
First to second visit conversion27%71%
Thirty-day return rate34%82%
Ninety-day active rate19%64%
Active members08,432
  • $312,000 in revenue attributed to the programme, a 524% return including all setup and running costs
  • Members spending 2.7 times what non-members spent across the year
  • Lost-card complaints down 90%, and three hours a week back from manual tracking
  • 47% of members made a successful referral
  • Two new locations opened, funded by the increase in per-store revenue

How this was measured

Membership, visit frequency, transaction value and attributed revenue were measured in the loyalty platform over the eight months after launch, against the paper card period that preceded it.

The client’s name is withheld by agreement. The figures are unaltered.

Industries:Hospitality