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A coffee house that really knows its customers? We’ll drink to that.

Business Issue:

Caffé Nero was looking to review their loyalty strategy at a time when they had very little customer level data apart from the on-line feedback survey, hence were on a real quest for knowledge about their customers.

It is known that people love the stamp card, they get a real sense of being rewarded, but it is not ideal for a loyalty scheme as it has no data capture which prevents Caffé Nero from knowing if it is working or not, and what customers are buying when, and you can’t influence behaviour without this knowledge.


Caffé Nero would like to develop a new but wholly appropriate approach to loyalty with a scheme that facilitates:

  • The capture of customer data and behaviours
  • Giving customers a differentiated experience
  • Rewarding best customers and finding more of them
  • Working with partners to find customers they can’t usually reach

All of which could be encapsulated in a customer dialogue that recognises the value (altruistic and financial) and commitment of an individual customer, and which facilities and nurtures the relationship so that it blossoms and grows.

Our thinking:

  • Get to know who the customers are, find out a little about their habits and drill into their behaviours
  • Understand their behaviours and what this means versus value and engagement
  • Map their potential growth to determine where the emphasis of the relationship should be
  • Develop appropriate journeys to lead them into a mutually valuable relationship

Our approach:

  • By combining aspects of loyalty with reasons for choosing the brand we created a 7 segment solution
    • Why did you go to the coffee house/ what was your need?
    • What did you like when there / what helped you choose Caffe Nero?
    • How frequently do you visit?
    • How loyal are you to Caffé Nero compared to other coffee houses?
  • Factor analysis and clustering of customer and variables to identify the key considerations for the consumer surrounding their visit

Our output:

  • Relationship based segmentation to drive comms and instore promotions
  • Store clustering model to enhance engagement at POS
  • Differentiated email strategy to engage with customers in an otherwise unused channel

Business Impact:

I’ve worked with TIH for several years now and always look to them when trying to understand a customer and what really matters to them.

TIH will always start with the customer first, understanding that they are an individual with behavioural characteristics unique to them as a person. This approach is increasingly rare in a world of data and algorithms that promise ‘personalisation’ but so often delivers something more generic and fragmented. Data needs to be questioned and treated with a level of diligence to get any real value or meaning out of it. TIH puts the customer at the centre of the journey, in a place where both the individual and the brand can get the most out of the relationship.


Partnerships Manager, Retail

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