The Coffee Club Is Testing a New Loyalty Model. It Is Not About Points.
The Coffee Club has launched a member pricing trial across six South Australian stores, replacing the points-based reward logic of its existing program with som
Member pricing is displayed alongside standard menu prices in-store, so every customer who walks in sees the benefit before they decide whether to join.
The Coffee Club has launched a member pricing trial across six South Australian stores, replacing the points-based reward logic of its existing program with something more direct: members pay less than non-members at the point of sale.
The trial launched on May 20 and runs across stores at Elizabeth, Gepps Cross, West Lakes, Westfield Marion, Harbour Town West Beach and North Terrace Adelaide. For $3, customers gain access to discounted pricing on coffees, hot drinks and food items. Existing Club App and VIP members get the first year free.
The shift in model matters more than it sounds. Points-based loyalty programs defer the reward. The member earns points and redeems them later, creating a psychological gap between the purchase behaviour and the benefit. Instant member pricing closes that gap entirely. The benefit is visible on the menu board before you order.
Why it matters
Australia's cafe market runs on repeat purchase. The economics of a loyalty program that successfully converts a casual visitor into a regular member are significant given the frequency and value of the category. The Coffee Club is testing whether immediate pricing transparency converts better than accumulated points. If it does, the case for expanding across their national network of over 200 stores is straightforward. This is the biggest loyalty overhaul the brand has done in 35 years.
Years since The Coffee Club last overhauled its loyalty model — this member pricing trial is the most significant change in the program's history
What to do about it
If you have a loyalty program built on points and deferred rewards, model the economics of immediate pricing transparency as an alternative. Points programs carry liability on the balance sheet in unredeemed points and often have low redemption rates, which creates a gap between the program cost and the perceived member benefit. Instant pricing removes both problems. For hospitality, retail or subscription businesses with a frequent purchase cycle, the Coffee Club trial will produce useful data over the next few months. Watch it.