Coffee and Connectivity: Unlocking Digital Trends for Loyalty and Personalisation

July 2023

The evolving consumer preference, rapid technological advancements and ever-growing desire for convenience are driving a transition towards a smartphone-first future. Coffee industry players need to be equipped with the right strategies and tools to ensure growth opportunities, maximise customer retention, foster brand loyalty and enhance consumer experience. This report analyses the key digital trends that are influencing the coffee industry.

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This report comes in PPT.

Key findings

Smartphone-first future creates new path to purchase

Smartphones become an integral part of the consumer purchase journey, as well as enable personalisation for tailored products and convenient services. A smartphone-first future will potentially provide more opportunities for omnichannel strategies whether it is ordering via delivery, drive-through, takeaway or eat-in.

Rising demand for personalised products and smart devices

The increasing desire among consumers for products and services that simplify daily lives, combined with the growing demand for personalisation based on individual preferences, is driving sales of connected coffee machines.

Increasing investments on advanced vending machines

Advanced vending machines with cutting-edge features are expanding worldwide, offering brands a path to rapid expansion, testing of new products, and a potential response to high labour costs. They also provide valuable insights into consumer purchases, popular products and locations that could lead to further valuable insights and uncover new growth opportunities.

New nodes in the delivery network and loyalty programmes

Attracting and retaining consumers by generating value-added experiences along the entire customer journey remains a key factor for growth opportunities. In recent times, the loyalty rewards app has been highlighted as an important and valuable tool to create seamless experiences and build strong brand ties.

Key digital trends in coffee
Undergoing digital transformation in the coffee industry
Smartphones create new path to purchase
Food and beverage industry focusing on digital engagement
Coffee players are seeking opportunities
Three factors driving smart connected coffee machines
Hybrid work leads to a surge in coffee machine sales
Lifestyle changes lead to increasing demand for personalisation
Automatic coffee machines at the forefront in terms of innovation
Coffee players exploring the potential of smart homes
Case study: Nescafé Dolce Gusto launches Neo
Case study: Barista TS Smart by Melitta
Case study: K-Café SMART by Keurig’s BrewID technology
Three factors driving advanced vending
Vending adapting to the evolving landscape
Key advantages of vending machines/automated kiosks
Beverages lead the way in terms of next-generation vending solutions
Third parties’ vending apps on the rise
Case study: Rhea Vendors Group introduces Kairos with Barista Avatar
Case study: Root C by Tokyo-based start-up New Innovations Inc
Case study: Ella robot by Crown Digital
Three factors driving digitalisation in coffee shops
Global recovery is hindered by moderate transaction volume and cautious spending
Connected consumers disrupt the foodservice industry
Loyalty programmes at the forefront to generate growth opportunities
Preferences and attitudes to loyalty by consumer segment
Case study: Panera is testing OpenCity’s voice AI ordering technology
Case study: Starbucks achieves success by embracing customisation with its mobile app
Case study: Dunkin’ Rewards unlocks Boosted Status
Case study: Blank Street Coffee closes USD20 million to scale beverage subscription service
Case study: Tim Hortons extends loyalty programme with new Tims credit card
Flash Coffee tech-enabled coffee chains: Brewing up a coffee revolution
South Korea’s SK Telecom launches new AI Barista Robot concept
Case study: Adam the robot barista by Botbar Coffee Shop
Web 3.0 and the metaverse are the next step for loyalty programmes?
Data collection: Opportunities and challenges
Key takeaways

Hot Drinks

This is the aggregation of Coffee, Tea, and Other Hot Drinks.

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