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Tue 13 Jan 2009 04:00 AM

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Costa extracts repeat custom in loyalty spend

As the coffee shop sector becomes increasingly competitive, improving customer loyalty is imperative.

Costa Coffee has rolled out its loyalty card scheme, offering a free coffee to customers to encourage repeat business.

Costa recently appointed Eric Hughes from Whitbread Plc in the UK as General Manager for ELR Costa.

The new marketing strategy has been implemented to demonstrate to the UAE public that Costa is "the only brand with real coffee authority; they source, store, blend, roast, grind and extract all their own coffee. No one else is involved. They plan to deliver this key message through world class branding and marketing," Hughes said.

"As the coffee shop sector becomes increasingly competitive, improving customer loyalty and retention will be fundamental. At Costa we're happy to be able to introduce a loyalty card scheme for the benefit of our customers and along with our high quality coffee is another reason for them to keep coming back," Hughes commented.

The new loyalty card was distributed to customers in residential areas through a leaflet drop that included a pre-stamped card offering a free coffee for redemption in any Costa outlet in the UAE.

Additional loyalty cards will continue to be available at all stores in the region for customers to pick up when they purchase their next cup of coffee. Redemption on the cards also extends to Costa's popular Frescato range giving increased flexibility for customers which is paramount in today's market.

"We want to differentiate ourselves from other chains as we believe our product to be of a higher quality. We aim to resonate with our target market through our branding and messaging strategy," he added.

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