Simple Solutions Can Increase Revenue
Aliaksandr S.
Growth Marketing Manager with 10+ years of hands-on experience | strategic, customer-centric, data-driven | focused on long-term growth, brand building, and optimizing the whole customer journey
As a marketer, it's not always about coming up with new, groundbreaking ideas. Sometimes, it's about being an investigator and looking at the little details that others might miss. In this article, I want to share a story from my own experience where I was able to increase revenue for a coffee chain using simple solutions that didn't require any extra costs.
In 2017, I was brought on to stabilize the revenue of the YouCoffee chain, which had suddenly started to decline. The most successful outlet, which had a loyal customer base, was losing revenue for unknown reasons. I started by analyzing the sales and revenue trends to make sure that the decrease wasn't due to any external factors.
After ruling out any seasonal changes or external events, I looked into the changes that had taken place at the coffee shop prior to the decrease in revenue. One thing stood out: the change in the supplier of coffee beans. The chain had originally decided to choose another supplier, due to a cheaper coffee blend consisting of 80% Arabica and 20% Robusta, in an effort to reduce costs. However, this change in the coffee blend negatively affected the taste of the drinks and resulted in a decrease of about 30% in revenues, as disappointed regular customers stopped visiting as often.
In line with the findings of a recent study titled "A Study on the Effect of Customer Habits on Revisit Intention Focusing on Franchise Coffee Shops" (https://www.mdpi.com/2078-2489/13/2/86/htm), "satisfaction with perceived product quality is positively associated with future intentions, such as customer intention to revisit and intention to portray the product positively to others." The study also states that "Perceived product quality has a positive effect on customer satisfaction" and "ensuring the quality of coffee and beverages and the variety of coffee sold are key to attracting repeat customers."
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So, we decided to return to the old supplier and to clearly communicate any changes to our customers. This helped build trust and a long-term relationship with our customers, making their experience more enjoyable and less stressful.
The results spoke for themselves. Regular customers returned more often and the coffee shop was able to return to its previous income levels. The key to success was empathy and understanding our customers' needs. These simple solutions not only helped increase revenue but also continue to benefit the business and customers without the need for constant involvement from marketers.