Create an Engaging Customer Loyalty Experience with Peet’s Coffee
After 4 years on the market, Peet’s Coffee has relaunched Peetnik Rewards, its loyalty program, redesigned to offer a wider variety of personalized rewards, faster. Originally launched in 2017, an updated app and program went live in the fall of 2021 to much fanfare which included a guaranteed prize draw that lasted 2 weeks.
“From launch to relaunch, we were constantly seeking customer feedback,” says Lisa Regelman, Loyalty and Growth Marketing Manager at Peet’s Coffee. “What we heard was that customers wanted to earn points per dollar spent and have more choices with redemption.”
Regelman shares that the biggest change to the program was the change to the point-earning rules, and the expansion of the rewards catalog, both of which came in direct response to their most important stakeholders: their customers. “The Peetniks are very passionate about the brand and our product.” The change allows Peet’s Coffee to reward loyal customers for the extent of their consumption and not just per visit, as well as giving them more ways to redeem their points. Free drinks, baked goods, breakfast sandwiches, coffee beans, or discount dollars, customers can choose their rewards.
Full program terms and conditions Showcasing the new earning and consuming rules, with multiple redemption tiers that offer a variety of store product rewards and instant savings.
The new program aims to increase frequency, as well as spending. “We wanted our program to be more motivating and increase opportunities for customer engagement,” Regelman says. The new program continues to recognize those with high visitation frequency and recognizes other equally important segments of Peetniks, who the brand hopes will be motivated by the speed at which they can now earn rewards. The program rewards high-value customers and creates more engagement at all levels through faster access to rewards. The benefit to the customer is a faster path to a rewards redemption opportunity while driving frequency, recency, and monetary value results for the brand.
Peet’s Coffee has also removed the barrier of automatically converting points into rewards, followed by reward expiration, which can be a sticking point in the overall experience.
Previously, a reward was issued immediately after earning 15 points and was then time-limited by an expiration date for redemption. The pressure to redeem rewards and the lack of control over when and how the customer could redeem the reward was a sticking point for many mid and lower frequency customers. Regelman shares that the new program shows improvement on every level, from every segment.
Another important indicator of program penetration and rating is the increase in rewards redemption, which shows that customers understand the program and see its value in how they use it.
“We cover the entire menu in terms of redemption choices, including cashback dollars,” Regelman says, referring to the wide variety of redemption options. The increased choice of rewards that are not just free drinks aligns with brand values. “We offer artisan coffee and hand-roasted beans, so that’s also reflected in the loyalty program, with our cashback catalog, where it’s really the customers choice.”
Peetnik Rewards is an example of how the customer loyalty program should be an extension of the brand customer experience. Peet’s Coffee is known for its coffee bar experience and craft beverage delivery, so having a program that now offers a wider variety of personalized rewards shows great alignment with the Peet’s Coffee brand.
Customers can expect their needs to be met in the new program as they were widely consulted during the relaunch process. Regelman credits research, surveys, in-depth interviews and co-creation sessions with passionate Peetniks as some of the tools that helped their team learn what was valuable to their clients and be able to deliver an updated program. focused on personalization.
“The challenge for everyone in this space is how do you make the experience meaningful. How do you make life easier/enhance the customer? We’re trying to do that with personalization. The other challenge is knowing how to take the coffee bar experience and bring it into the app The Peet’s Coffee magic is what happens in the store, and we wanted to bring that experience into the app.
Peet’s Coffee brand personality shines through in updated app and program. From animations that surprise and delight to creating quality food and drink, the app puts the Peet’s Coffee product and the point of earning experience at the center of the new app.
The relaunch of Peetnik Rewards did not happen in a vacuum and relied heavily on data from 4 years of program operation. In addition to engaging customer stakeholders, Peet’s Coffee worked with experts from its partner team: the app was created by Hathway, the new rules engine and guaranteed prize draws were both managed by Paytronix, and Regelman credits Brand Loyalty for his strategic leadership, helping to shape the new program.
Regelman says Peet’s Coffee isn’t finished yet. “We see the program as a living, breathing thing. This relaunch was only a first step. The current program only rewards in-store, but the longer-term strategy may include expansions into other parts of Peet’s business.
Not to mention what Regelman and his team are building for experience innovation in the years to come. We can probably expect Peet’s Coffee to continue to brew magic in the world of Peetniks and to continue to incorporate customer feedback to guide long-term program development. What these early successes prove is that there is a better return on loyalty investments when the customers served are consulted for feedback. Peet has cleverly used customer feedback to update a popular program and make it even more attractive to use.