Note: I asked Paul Kenjora to write up a little post about how TabHere works because what they’re offering is really cool. Plus, it’s an idea made here in Arizona and tested at local coffee houses. I think coffee shops could benefit from using TabHere, and know of several local shops doing just that. – Chris
TabHere is a way for local coffee shops and regulars to benefit each other. For the coffee shop its a pre-paid tab that means: money up front for the week, a rewards program funded by CC fee savings, a guaranteed return visit, increased transaction frequency, and increased customers guaranteed ( that last one is unique to TabHere ).
For regulars it means, no need to carry or lose a gift card, no app to download, an amazing user experience at the counter, and 20% instant rewards ( paid for by reduced CC fees ). Focusing on the experience is working for TabHere, customer adoption at participating coffee shops is generating over $2,700 a month in repeat tabs. Customers with huge smiles are walking up to the counter with family and friends saying “Check this out, its so cool… put it on my tab!”
In that regard, TabHere is more of a virtual gift card than a rewards program. Each coffee shop owner is provided an iPad behind the counter that tracks a customers name, photo, and balance. The photo ID is uploaded by customers from home. A barista can look up a regular in under 10 seconds by typing just a few letters of their name, often before they get to the counter.
If a regular does not already have an account, not to worry, they can open a tab at the counter by providing their name and email. A tab can be funded just like a gift card sale, swipe the customers credit card on your POS terminal and add to the balance on TabHere’s iPad. When the customer purchases anything, the barista simply reduces the balance in the iPad just like a gift card. All rewards, balances, and even taxes are tracked on the iPad with instant user metrics and sales reports available to the coffee shop owner.
True to being a benefit to both regulars and coffee shop owners, TabHere’s 20% reward is completely self funded and does not increase the cost to merchants with standard POS terminals. 10% of the reward is funded by replacing the “buy 10 get 1 punch card”. The other 10% is funded by saving credit card fees per swipe, taking several transaction from $2.75 to one at $50.00, saves over 12% in fees. So the 20% is an amazing incentive to start a $50 tab for regulars but costs the merchant less than running a punch card, thats the TabHere win-win.
Unlike any other “loyalty rewards programs”, TabHere actually brings customers through the door. Of the 20% reward each customer receives, 1/4 is reserved for gifting. Every email receipt a customer gets contains a note on their earned gift reward and a giant button labeled “Gift A Tab”. For a coffee shop this is viral local referral marketing. The regulars, the most passionate customer base, become a coffee shops marketing team, and they’re happy to do it because of the 20% reward.
The goal for TabHere is to enhance the way a coffee shop already works without burdening the owners. Regulars want to start tabs and pay with their smile, it makes them feel more loved. Owners want local marketing but don’t have the time to actively ping existing customers for emails, referrals, and come up with special daily deals 365 days a year. TabHere irons out all those wrinkles by offering 20% rewards and asking for gift referrals, no cost to the coffee shop, no time invested by the owner.
TabHere does charge a 2% monthly fee for the program to the coffee shop owner. A typical coffee shop will see $2,700 in monthly tabs, bring in 20 gifted customers, and pay $54 for the program. Thats less than a $2 a customer who turns around and starts a $50 tab on arrival, amazing results for a marketing campaign.
TabHere is a local Phoenix company launched at several valley locations including SongBird Coffee in downtown Phoenix and Matador Coffee in North Phoenix. The founders Paul and Arthur can be reached at 602-214-7285 or email@example.com.