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Success Story

$25 on 1 card

Instant gratification – $4M in sales How one coffee shop turned gift cards into a booming loyalty program

Introduction Established in 2004, Durango Joe’s Coffee remains true to their mission, known as much for their “legendary” customer service as for their coffee. Led by founders Joe Lloyd and his wife LeAnna, the Durango, CO-based business has eight locations in Colorado and New Mexico. The Challenge There is no shortage of coffee shops in the small Southwestern Colorado town of Durango, and Lloyd knew he had to do something different to edge out his competitors. Lloyd sought a loyalty program that was simple, effective and different than competitors’ offerings. He wanted to replace the coffee punch cards they had used in the past, which did not offer customers purchasing choices. And he felt that offering customers instant gratification instead of making them wait to earn their rewards over time would drive greater loyalty. The Solution Durango Joe’s, a Mercury® customer since 2008, launched a campaign for their “Cash Card” (aka, gift card) offered through MercuryGift®. For every $25 a customer loads onto their Durango Joe’s Cash Card, they receive a free drink of their choice – right there, on the spot.

Basically, it’s a reverse punch card,” explains Lloyd. “Customers get their rewards – a free drink, any kind, any size – upfront when they load $25 onto their card. They don’t have to wait until they’ve purchased 10 drinks first like they did with the punch cards we were using before.

We wanted to grow our customer base and keep them coming back,” says Lloyd. “We’re in the people business, not just the coffee business. We wanted to find a way to let our customers know how important they are from the minute they walk in.

Success Story

Durango Joe’s Cash Card offers customers more options. Unlike the punch cards, which were limited to coffee drinks, customers can use their Cash Cards to purchase anything in the store including food and Durango Joe’s merchandise. Since the free drink offer applies to any drink on the menu, it’s a great opportunity for Durango Joe’s to introduce and upsell customers to something new that they may order again in the future. Results “Our goal is to make 40% of all store sales in Cash Cards, and we’re proud to say we consistently meet and exceed that goal,” Lloyd says. An additional bonus of the Cash Card program for Durango Joe’s is that they save money on swipe fees. Since MercuryGift card transactions are free and unlimited for merchants who process credit and gift with Mercury®, swipe fees apply only to the initial loading of a Cash Card if a customer pays with a credit or debit card. Durango Joe’s previous merchant services provider charged 7-8 cents/swipe. Lloyd estimates that he has sold over 50K gift cards since starting the program four years ago.

The Cash Card puts us in a place that’s just a little bit ahead of our competition and adds to our customer base,” says Lloyd. “Even I use a Cash Card – so I also play a part in the program’s success!

800.846.4472 [email protected] mercurypay.com