Over the past year, the digital analytics teams have been hard at work on the Costa Coffee loyalty program. In general, customers who sign up for the loyalty program through the app spend 2.7 times more annually than non-registered customers. That’s a massive difference of about 173% per customer, which greatly affects the customer lifetime value for the entire Costa Coffee business.
One of the key challenges the analytics teams faced was to optimize the app registration process so that they could get more users to sign up for the loyalty program. The typical app registration flow involves a three-step process that asks users to fill out their contact details and preferences. After analyzing the data over a six-month period, it was clear that Costa Coffee was losing thousands of customers every week at multiple points throughout the registration process. About 30% of new app users dropped off midway, during the period between downloading the app and registering for the loyalty program.
The teams were able to get these numbers from a quantitative analytics tool, but the numbers alone did not explain the underlying user behavior that led to user drop-offs. The opportunity costs as a result of these drop-offs were huge, which compelled them to seek a complete analytics solution that would provide qualitative insights to understand exactly why this major drop-off was occurring.
Daniel was one of the first people from the Analytics Team to use UXCam. He was searching for an analytics tool that could do more than basic session recording or show quantitative vanity metrics. He wanted a comprehensive tool that would allow his team to identify the key issues and also take steps in resolving them.
One of the first things he did after setting up UXCam was tracking custom events for all of the key registration metrics that he was interested in. Combining custom events with funnels, Daniel was able to paint a visual picture of the way users sign up for the Costa Coffee app. This immediately revealed some interesting patterns: It showed exactly how users navigated through the three-step sign-up process, what the key bottlenecks were, and where exactly most users are dropping off.
This combination of custom events and funnels led to the single biggest bottleneck: About 15% of new users dropped off after entering invalid passwords. In order to drill down on this further, Daniel set up more events for each type of invalid password reason and also started researching the session recordings associated with these events. This study revealed some interesting patterns and led the Analytics Team to propose design changes that would overhaul the current user-detail entry section.
"If something goes wrong within the app, UXCam is the first port of call to understand what's going on."
Thanks to a combination of Funnels, Events, Session Recordings, and Heatmaps, the Analytics Team at Costa Coffee was able to narrow down the single biggest reason behind user drop-offs. It has taken these insights and are currently in the process of overhauling their registration process, while continuously looking for new analytics insights. UXCam helped Costa Coffee identify a massive missed opportunity in the form of sign-up drop-offs, and helped the company formulate a comprehensive strategy towards achieving higher revenues through the loyalty program.
Costa Coffee is a British multinational coffeehouse company headquartered in Dunstable, Bedfordshire. It is the second largest coffee shop chain in the world and the largest in the UK. Its acquisition by Coca-Cola in January 2019 propelled Costa Coffee into a truly global brand with customers and employees spread across the world.
Even though COVID-19 was the turning point that forced many brands to go digital, Costa Coffee was already ahead of its competition with its digital transformation initiatives. The in-house digital teams working across multiple continents have continuously optimized the official Costa Coffee app to ensure that it’s a one-size-fits-all tool that can pretty much do anything for a customer. Apart from basic user registration and managing home deliveries, the app has been custom built to act as an interface between users and express coffee machines — thus allowing customers to order coffee from a machine with just a few taps.
“I understand the value that UXCam brings across the board, and now I am getting other teams at Costa Coffee to try it out along with us,” says Daniel. Costa Coffee has a big year ahead with some major app features going live. Playing a key role across multiple teams, UXCam is now an integral part of the launch and live ops strategy.