Coffee subscriptions were all the rage. Now, interactive memberships are taking center stage.
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This week’s edition is written by Garrett Oden, publisher at Fresh Cup.
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Coffee Subscriptions Walked so Memberships Could Run
There are more than 740 coffee subscription providers in the U.S., according to one market research firm (but I’d wager the number is higher). That’s a lot of businesses competing for a spot in someone’s coffee ritual. One report from Recharge, a leading subscription management app for Shopify stores, estimates that average monthly churn for subscriptions like coffee runs 4% to 7%, with many cancellations coming within the first three billing cycles.
The coffee subscription business is crowded, and loyalty is hard to earn. That’s why more and more brands are creating membership experiences rather than relying on basic subscription systems.
- La Colombe launched a $44 annual membership alongside its subscription. Members get free shipping, exclusive pricing on select products, cash back, and early access to seasonal releases.
- Hatch Coffee in Ontario sells a $50 (Canadian dollars) annual membership with 10% off its subscription and other online products, access to a members-only Discord server, and early access to special releases.
- Arcade Coffee Roasters in Riverside, California, runs a quarterly membership that includes a member-exclusive coffee, a limited release, and an early release a month before it reaches shelves, plus a club T-shirt and car decal.
- Kafiex Roasters in Vancouver, Washington, charges $90 a quarter for a monthly bag of coffee, six free pour overs, and member-only events.
- Palace Coffee Co., a cafe in Amarillo, Texas, started with an annual club that came with a tumbler, a metal member card, and events. It has since moved to an app-based membership; for a monthly fee of $7.50 customers receive 15% off all purchases. Co-owner Patrick Burns says members come in more often and bring friends who pay full price.
- Leaderboard: The Coffee Game turned their subscription into a quarterly competition. Players get 10 mystery coffees from 10 roasters and try to identify each one. Leaderboard posts the top scores, the top players win prizes, and everyone celebrates or laments in their dedicated Discord.
These roasters are betting that a customer with a members-only coffee, an exclusive event, or a dedicated chat room has more reasons to stay than the one who just gets a bag of coffee once a month.
Build a Membership Program
Strong memberships that retain customers are built on offering new value, often in the form of community or new experiences.
Hand them something physical. Kafiex issues a physical membership card. Arcade Coffee Roasters sends a club T-shirt and a car decal. A decal on a bumper does your marketing for you. Offer something to make the membership more than an idea or pixels on a screen.
Make some things member-only or member-first. That can be an early release, a coffee no one else can buy, a cupping, or a tasting room menu. Arcade sells a club-only coffee each quarter. Kafiex runs member-only tastings and sensory classes.
Turn it into a game. Leaderboard: The Coffee Game runs in seasons, with a scoreboard, badges, and prizes for the top scores, but you can gamify your membership any number of ways. One idea I’ve encountered is to create an annual bingo card of things members might run into at your cafe. For example, taste a ‘rare’ type coffee on the menu, buy a friend a coffee, compliment the roaster’s hat, try a brew method you’ve never used. The rewards can be fun, like completing a row and earning a free bag, or blacking out the card and your name goes on the wall for the year.
Give them a place to talk. Hatch and Leaderboard both run members-only Discord servers. A Facebook group or a monthly email where members show off what they brewed works too. Just make sure you don’t leave people hanging. YES PLZ co-founder Tony Konecny says, “I want people to feel like they can email us anytime.”
Start smaller than you want to. Palace launched with a tumbler, a card, events, and tiered discounts, then pared the program down. Simple still works. Co-owner Krystal Burns says, “You can always add things. It’s hard to take things away, especially from a guest perspective.”
There are a bazillion ways to give members a reason to stay, and you don’t have to try them all. Pick two or three that make sense for you, run them for a quarter, and see how your community grows and changes.
GO DEEPER
How YES PLZ, La Colombe, and Other Coffee Brands Are Keeping Subscribers Loyal
La Colombe, YES PLZ, and others on how they hold onto subscribers, from paid memberships to personal notes in each shipment.
Palace’s owners join the Coffee Think Tank podcast to explain how a mug club grew into a community membership, and why they simplified it into a $7.50-a-month app program.
Coffee Subscriptions Are Booming: Here’s How They Connect Roasters with Customers Near and Far
How roasters design subscription perks that work for both local customers and those who live far away.
Punch Cards, Points, and Perks: Which Coffee Loyalty Programs Work Best?
Loyalty systems and apps are a dime a dozen, but how should you pick the ones that work best for your business context and customers?
Photo courtesy of Skylar Smith on Unsplash.
