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11.5%
RESPONSE
5,740
NEW CUSTOMERS
1,492
REPEAT CUSTOMERS
500%+
EST. RETURN
Arizona · 22 drive-thru coffee locations · New mover welcome package · 2015
5,740 new customers in 12 months!
Jim Thompson grew his Arizona Dutch Bros franchise to 22 locations, and he knew exactly what made them special. Because of their culture, Dutch Bros has uber-loyal customers. Broistas, as the employees are called, are cool, they’re hip, they play loud music and they actually enjoy talking to people all day. Once they get a customer, they know they can keep them coming back. Customers happily wait over 10 minutes in line every day. The line is long, but it moves pretty fast.
During this campaign, their average customer came in 4 times a week and spent about $4 per visit. $16 a week adds up. A new regular customer is worth $832 a year.
The Problem
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Every business needs to grow its customer count, and with 18% of people moving each year, they were fighting regular attrition.
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It was hard to get new people to take that first leap and wait in a line that sometimes snaked through the whole parking lot.
How We Helped
No discounting to regulars: Dutch Bros doesn’t believe in blanket discounts. Their product and their experience are the value. So instead of saturating neighborhoods with free coffee, we mailed only new residents, and the gift was free drinks for new neighbors only.
The right neighbors: We mailed new residents moving into the ZIP codes right around each location, close enough to become regulars. They didn’t know the brand yet, they were still building their habits, and the long lines scared them off.
The Results
Over the year, Dutch Bros reached about 50,000 new residents, and 5,740 of them waited in that line to see what the hype was about. That’s an 11.5% response. Our follow-up thank-you postcard showed that a whopping 26% came back for a second visit.
Say those Broistas turned only 1 out of 4 second-visit customers into regulars (and they’re way better than that). That alone gives Dutch Bros over 500% return in 12 months.
$832
what one new regular spends in a year
$1.7 million
new revenue from a $60K investment, over the 5.6 years people stay in their homes
Questions Owners Ask
Don’t free drinks just attract freebie hunters?
Not when it only goes to new residents. Your regulars never see a discount, and every first-timer is someone who just moved in nearby and is looking for a new spot.
Does new mover mail work for a franchise with lots of locations?
Yes. Each of the 22 locations had its own mailing area around the store, so every new neighbor got an offer from the location closest to them.
How do you know they came back a second time?
Every new customer got a thank-you postcard with a second offer. Those redemptions are tracked, so we know 26% of first-timers came back.
Want results like Dutch Bros?
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