BUSINESS CHOSEN: COFFEE SHOP BUSINESS
This business sells coffee, snacks and beverages to customers. A coffee business relies
heavily on understanding its customers because coffee is a frequently purchased products and
customer loyalty is very important.
Customer analysis is the process of identifying who are the customers, what they
need how they behave and why they buy a product.
1. Target customers of coffee shop business
A coffee business usually serves different types of customers depending on the
location and environment.
Main customer groups include
Students
Office workers
Business professionals
Tourists
Remote workers
For example, our coffeeshop is near Kyambogo university and this will attract students,
office workers, business professionals within the university
2. Customer segmentation
This involves dividing customers into groups based on their characteristics. And they
involve the following
Demographics segmentation.
This focuses on age, income, occupation, gender and education
Age
18-35years (largest group)
35-55years (regular coffee drinkers)
Occupation
Students
Office workers
Business professions
Income level
Middle income earners
High income earners who prefer premium coffee
Young adults often buy specially drinks such as cappuccino and latte while older
customers may prefer simple black coffee
Geographical segmentation
This focuses on where customer live or work(areas)
Coffee business perform best in areas such as
Busy centers
University areas
Shopping mall
For example, our coffee business shop is located in Banda near Kyambogo
university this attracts office workers students.
Psychographic segmentation
This focuses on lifestyle, personality and interest
Coffee shop customers often
Enjoy socializing with friends
Relaxing environments
Value convenient and comfort
Many people visit coffee shops not only for coffee but also for
Meetings
Studying
Relaxation
Some customers also prefer coffeeshops with wi-fi, music and comfortable
seating
Behavioral segmentation
This focuses on customer behavior and purchasing patterns coffee shop
customers may be grouped as
Daily customers
People who buy coffee every morning before work
Occupational customers
People who visit coffee shops during meetings or social gatherings
Loyal customers
Customers who consistently visit the same coffee shop because they like the
taste and service
Price sensitive customers
Customers who choose coffee shops based on affordability and promotions
[Link] needs and expectations
Understanding customer needs helps a coffee business improve services
Customer except
High quality coffee – customers want fresh well-prepared coffee
Fast service- busy customers wants quick service, especially in the morning
Comfortable environment-many customers prefer coffee shops with
comfortable seating, good lighting, relaxing atmosphere
Variety of drinks and snacks -customers enjoy different options such as
cappuccino, latte, espresso, tea, pastries and sandwiches
Affordable prices- price plays an important role in attracting students and
young professionals
[Link] buying behavior
Customers usually go through several steps before choosing a coffee shop.
Need recognition -A person feels the need for coffee or a place to relax or work.
Information search -The customer may search for nearby coffee shops or remember
previous
Evaluation of alternatives -The customer compares different coffee shop based on
price, quality, location and environment.
Purchase Decision-The customer chooses the coffee shop that best meet their needs.
Post- Purchase experience-If a customer enjoys the coffee and service, they are likely
to return and recommend to the shop.
[Link] acquisition strategies.
A coffee business attracts customers using several strategies.
Marketing and Promotion.
Social media advertising.
Posters and promotion.
Discount for students
Attractive store Design.
Comfortable seating and modern décor attract customers.
Strategic Location.
Opening shops in busy areas increase visibility and customer traffic.
[Link] Retention Strategies.
Keeping customers loyal is important for long – term success.
Coffee shop retain customers by,
Offering loyalty card or rewards.
Providing consistent product quality.
Giving excellent customer service.
Creating a welcoming environment.
7. customer relationship management
Coffee shop business maintains long-term relationships with customers
Activities include
Tracking customer purchase behavior
Personalized marketing special offers and rewards
IMPORTANCE OF CUSTOMER ANALYSIS FOR COFFEE.
It helps to understand customer p reference.
Improve product and services.
Design effective marketing strategies.
Increase customer satisfaction.
Build customer loyalty.
Increase profit and business growth.