Counting Beans

How a coffee provider brewed $100k in revenue from email marketing alone

by The Marketing Team,  Constant Contact Customer Success Stories

Gourmet Coffee Service
Location: Los Angeles
Website: http://www.gourmetcoffeeservice.com/
Open Rate: 27%
Customer Since: December 2010

Gourmet Coffee Service has been around since 1995, and in that time it has built very strong relationship with many of its 2,000 clients. The business, which has offices in Los Angeles and Orange County, is always looking for ways to improve those relationships.

At the very end of 2010, Gourmet Coffee Service decided to start taking its marketing efforts online by using Constant Contact's Email Marketing tool. By November 2011, the company saw more than $100,000 in revenue and seven referrals, something Bob Tullio, director of business development, says is "directly attributable" to the company's  email newsletters.

"In the past, our drivers handed out fliers or we faxed them over, or sometimes sent random emails about new deals," he explains. "This year, we've really benefited from having this beautiful way of reaching out."

Email marketing has worked for Gourmet Coffee Service in a big way, but what was the secret?

Engagement through free samples

Bob explains that Gourmet Coffee Service typically installs brewing equipment in offices for free, and clients buy products for the pantry, including coffee, hot chocolate, tea, and roll towels. A single client can buy many of these items each month, but the real challenge is getting businesses to add new or additional items to their product list.

That's why Bob decided to use Constant Contact to introduce the Free Stuff from Gourmet Coffee Service newsletter every six weeks. "It's 50/50 if someone will order a free sample and then continue buying it after the samples run out," he says. But there's no question as to whether the sample program has been a success - at least 100 clients per mailing request the samples featured in the emails.

Since clients are often businesses with more than 40 employees, referrals have also been valuable when it comes to business development. "We give away a spa treatment to anyone who refers a company that becomes a paying customer," Bob says.

Creating dynamic relationships through social media

Relationships remain Gourmet Coffee Service's top priority. Email marketing has helped foster interaction with clients and prospects, and social media has started to do the same. Bob says that the customer service power of these tools comes in handy when clients are considering a competitor's services.

"We can say, well, look at our email newsletter, look at our Facebook Page, and compare that to what your provider is doing," he adds.

The Gourmet Coffee Service Facebook Page is just three months old, but Bob is working hard to make it a dynamic environment through promotions and giveaways. "We give away $10,000 worth of prizes to Facebook fans," he says, "and we make sure that clients know it's there. When our drivers get to client sites, they mention the Page."

One recent giveaway featured a Bose music system. In mid-November, the weekly drawing promised an Apple TV to one lucky fan. With almost 300 Likes, Gourmet Coffee Service has seen an admirable rate of growth since starting the Page this fall. And with such intriguing giveaways, and the ongoing connection to clients, there's no doubt that the number will keep rising in the coming months.

While incentives can help grow awareness of the business, Bob says that his biggest takeaway of 2011 was learning about the power of content.

"Compelling content is crucial," he says. "Clients and prospects don't have the time or patience to have another brochure in front of them. So when people told us they wanted product samples and we offered that to them through email and social media, we made solid connections with the people who are most important to our business."

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