Serving up higher AOV at Blue Bottle Coffee
Campaign results
- $164K in incremental sales
- 58% incrementality for new customers
- 30% post-campaign retention rate
- 4K+ new customer transactions
Opening account
Anyone who’s tried Blue Bottle Coffee appreciates the next-level quality of its offerings and its tastefully designed cafes. With roughly 100 cafes in the U.S., and an online portfolio of premium, specialty coffee, the Blue Bottle team was looking to extend their experience to a new guest base during the holidays.
With Chase Media Solutions, Blue Bottle Coffee could specifically target millions of new customers across the country, drive both in-store and online sales, and even ensure a higher AOV. In short, it had all the markings of a smart recipe for year-end success.
Branching out
Blue Bottle Coffee’s campaign was crafted with the primary goal of helping the brand acquire new customers through the online sale of high-end items like their holiday collection, coffee subscriptions and home barista essentials. The Chase Media Solutions team did this by leveraging Chase’s owned transaction data to determine Blue Bottle’s ideal target audience. By taking into account Chase customers’ purchase history, Blue Bottle’s campaign could reach a primarily new audience — people who hadn’t purchased from the brand in the last year.
Then, to drive the right kind of spending, the team tailored a cash back offer for Blue Bottle that could be redeemed both in cafes and online. They also decided to offer new customers a higher cash back reward than existing customers and set a minimum purchase requirement to ensure higher order values. With everything in place, the campaign went live across Chase’s owned, brand-safe channels.
Total gains
Blue Bottle Coffee’s transaction-based marketing campaign served up $164,587 in incremental sales (58% incrementality for new customers) and 4,296 transactions from new customers (those who hadn’t shopped with Blue Bottle in 12 months). The 30-day campaign garnered 38.6MM impressions to consumers, with online sales accounting for $294K out of the total omnichannel sales of $462K. In addition, long-term value reporting revealed that the campaign inspired a 30% customer retention rate in the 30 days after its end. The retention for new customers was 9%, while the retention rate for lapsed customers was 15%.
Extra credit
Chase Media Solutions was able to track and report on sales both in cafes and online for Blue Bottle Coffee’s campaign. This empowered the retailer to gain additional insight into the specific customer behavior their offer inspired.