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UCC Foodservice Systems Inc.

UCC Foodservice Systems Inc.

Introduced from: November 2008-
Introduced at: About 290 stores across Japan including franchise chains such as UESHIMA COFFEE HOUSE and KO:HI:KAN
Service Features: Reward of up to 10% top-up (deposit) and payment points, and double-point promotional event offers on a regular basis

Interview

ーーーWhat was the objective and reason for introducing Valuecard?

We wanted to increase sales by creating new sales promotion initiatives with the card. Prior to that, our customer acquisition strategies always relied on discount offers, such as discount coupons and other tickets.
Although the previous point cards were a simple and easy service for customers, we still had issues because they lacked marketing capabilities.
Based on this, we thought that a prepaid card would be effective with retaining customer loyalty and creating more repeat customers, and also introduced an email communications tool at the same time to strengthen costumer communications.

ーーーWhat changes have you experienced since installation?

For a coffee shop, where the core product is a 350 yen cup of coffee, it is very hard to increase even a single yen to the average sales per customer. Given the circumstances, it was an entirely unexpected achievement when the average sales immediately soared by as much as 10%!
The average sales of prepaid card users is approximately 10% higher than cash-based users, and their repeat rate is more than 5 times a month.
Total sales increased more than 3% after introduction. We also gained the ability to visualize the repeat rates, which used to be difficult, providing a wider range of sales promotion strategies.

ーーーWhat are the keys to success?

To improve our ability to promote the prepaid cards, we have had shop staff practice the phrase, "Do you have a PRECIOUS CARD?" at morning meetings, and to take a proactive approach with customers at point-of-sale.
As a result, approximately 12% of our total customers are paying by PRECIOUS CARD.
Also, we have succeeded with increasing total top up (deposit) to higher levels by applying different point rates, according to top up (deposit) amount.
I think the keys are that staff understand the meaning of creating dedicated patrons, including the importance of using the card as an effective tool, and also providing opportunities to make customers happy thorough promotional events on a regular basis.

ーーーWhat are your plans for the future?

Cerebrating the 10th anniversary of the UESHIMA COFFEE HOUSE brand; we would like to use it as a tool to express our gratitude to customers.
Since we have recently started using social media, including twitter and Facebook, and have also released our own smartphone app, we would like to integrate these with PRECIOUS CARD, creating new plans and promotions and winning more new customers.
Aside from promotional events with special offers, we are going to strengthen customer services by offering limited-edition cards and more redeemable items.
Our goal is to provide greater customer satisfaction, increase card numbers and usage frequency, and eventually become the cafe of choice for customers.

ーーーWhat is your evaluation and expectation of valuedesign?

Your established experience and proven planning ability were definite decision factors when introducing the service, but I also recall I felt very reassured by your positive attitude to tackle our problems as a member of the project and also your passion to grow together, when our company was facing new challenges for our service.
At that time, other service providers highlighted system stability, but once we started using it, I understood well that what determines success and failure of this service is not the system, but the management and daily operations of the storefront after introducing the system.
We would appreciate your continued support by way of receiving proactive proposals and supporting efforts to create solutions, so we can grow together as partners who share these challenges.

Card Information


Card Name PRECIOUS CARD
Function Prepaid function (rechargeable type) and point reward function
Service Available for top-up (deposit) and payment at approximately 290 stores across Japan including franchise chains such as UESHIMA COFFEE HOUSE and KO:HI:KAN.
Also available for purchase at the AEON Gift Card Mall "Ure-Seed".
Top Up Requirements Minimum top-up of 1,000 yen in 1,000 yen increments (Maximum top-up limit of 20,000 yen)
Expiration Date One year form the most recent usage
Special Offers Special Top-Up Offers: Reward of 2% points for 1,000 yen, 3% for 2,000 yen, and 5% for 3,000 yen and more
Special Payment Offers: Reward of 5% of the payment amount
* Accumulated points are redeemable for 1 point per 1 yen

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