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Case study

How Costa Coffee Identified an Opportunity To Increase Its App User Registrations by 15% With UXCam

Costa Coffee logo
  • > 1M Installs

    on Google Play Store
  • 30% Drop-offs

    during app registration flow
  • 15% Drop-offs

    attributed to invalid password entries
Costa Manager Daniel Tomlinson

"Because of UXCam, we can get really granular and understand the exact reasons behind why users are dropping off during the sign-up process."

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Daniel Tomlinson

The Challenge:

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. Its in-house digital teams constantly optimize the official Costa Coffee app to ensure that it’s a one-size-fits-all tool that covers every customer need.

Over the past year, Costa Coffee has focused on its 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 difference of about 173% increased spending per customer.

The goal was clear: The app registration process had to be improved so that more users would sign up for the loyalty program.

After analyzing the data over a six-month period, Costa Coffee found that it was losing thousands of customers every week during the registration process. About 30% of new app users dropped off in between downloading the app and registering for the loyalty program.

Even though the team had already reached that conclusion by using a quantitative analytics tool, the numbers alone did not explain the underlying user behavior that led to user drop-offs. This made Costa seek a complete analytics solution that would provide qualitative insights into why this was happening.

Costa Coffee logo
About Costa Coffee:

Costa Coffee is a British multinational coffee brand. It is the second largest coffee shop chain in the world and the largest in the UK.

Its acquisition by Coca-Cola in 2019 propelled Costa into a truly global brand with locations in 41 countries.

Industry:

Hospitality

Employees:

> 15,000

No. of customers:

> 20 million

Features used:

Session Recording, Funnel Analytics, Event Analytics

The Solution:

Daniel, Costa’s Global Digital Analytics Manager, found UXCam to be the comprehensive tool that would let the team move on from vanity metrics. He quickly started to identify the main issues so that the team could take steps to resolve them.

With UXCam, he tracked custom events for all of the critical registration metrics. When he added funnels, Daniel was able to paint a visual picture of the way users sign up for the Costa Coffee app.

This combination of custom events and funnels led to the single biggest bottleneck: About 15% of new users dropped off after entering invalid passwords.

Daniel then set up more events for each type of invalid password reason and researched the session recordings associated with these events. Having found some interesting patterns, the Analytics team proposed design changes that would revamp the affected section of the app.

"If something goes wrong within the app, UXCam is the first port of call to understand what's going on. Playing a key role across multiple teams, UXCam is now an integral part of the launch and live ops strategy."

Daniel Tomlinson, Global Digital Analytics Manager

UXCam helped Costa Coffee identify a massive missed opportunity in the form of sign-up drop-offs, and enabled the company to formulate a comprehensive strategy towards achieving higher revenues through its loyalty program.

What’s Next?

Thanks to a combination of funnels, events, session recordings and heatmaps, the Analytics team narrowed down the single biggest reason behind user drop-offs. With this in mind, Costa Coffee is currently overhauling its registration process while continuously looking for new analytics insights.

“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. UXCam is playing a key role across multiple teams and is now an integral part of the company’s launch and live ops strategy.

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