According to the Allegra Strategies report, Project Café13, it is estimated that in 2013, (the latest available figures to be found) the annual turnover for all UK coffee shops was a staggering £6.2bn. Of this, £2.6bn was accounted for by the branded coffee shop segment with around 5,500 branches in operation.
Of that, Costa Coffee with 1670 outlets was over twice the sizes of its nearest competitor, Starbucks. It’s a hugely competitive and lucrative marketplace with Costa alone adding 18% to its high street footprint in 2013. In a recent Daily Telegraph report, it was noted that the coffee shop business increased by at least 5% in 2014 in even the most deprived economic areas.
It’s all about loyalty: The Costa Coffee Club
The Costa Coffee Club is their “little way of saying thanks”. For every £1 spent in store, they award five points, with each point being worth a penny. Customers can use points to enjoy anything else they fancy from their full range of food and drinks.
Costa Coffee has been an Ergonomic Solutions customer for many years. We currently provide a Payment Mounting solution to support the use of VeriFone VX820 terminals in all of their outlets.
The introduction of the very successful Costa Coffee Club loyalty programme, originally solely card based, has had to move with the times to keep pace with the expectations of today’s omni-channel savvy customers.
SpacePole – adaptable and future-proof
When Costa originally introduced a SpacePole payment solution, they were not thinking of the scanning application that the Costa loyalty solution now supports. So, in conjunction with the launch of the app and following discussions with ES, we suggested a solution that would allow the Motorola (now Zebra) hands-free scanner to be secured using the existing SpacePole mount. This was presented to the customer as a prototype, and once approved, rolled out as a solution- correctly positioned for customer transactions with accessibility for all.
The real message from this opportunity and subsequent win is that SpacePole proved its adaptability and flexibility. A simple add-on enabled a totally new application. We often talk about SpacePole being future-proof and upgradable, and this is a perfect example of just that. Whatever the application maybe on the initial install, SpacePole can answer future needs as well.
Leading by example
By understanding the customers’ requirements, we were able to suggest a solution that allowed the customer to minimise their investment in the scanning solution, to the benefit of Costa Coffee, and most importantly, its customers.