- The Hangout
- Posts
- Boba Guys’ Hang loyalty program prompted a 3.5x increase in spend for loyalty members
Boba Guys’ Hang loyalty program prompted a 3.5x increase in spend for loyalty members
Learn how Boba Guys created the bespoke, affordable loyalty program of their dreams that drives customer engagement and provides data ownership.
Hang
January 30, 2024
10,000+ customers onboarded in 40 days
244% increase in visit frequency
3.5x increase in spend for loyalty members vs. non-loyalty members
“Hang’s platform is great because it’s flexible enough to tailor to your business needs. It's not one-size-fits-all, which is perfect for us. We've taken it incredibly far, and we're going to take it even further.”
About
Two friends launched Boba Guys in San Francisco’s Mission district with one goal: making the perfect cup of boba milk tea. That dream quickly expanded — Co-founders Bin Chen and Andrew Chau also hoped to break cultural barriers with their drinks. The incredibly popular milk tea chain now has storefronts in San Francisco, Los Angeles, and New York.
Challenge
Boba Guys dreamed of a bespoke loyalty program and data ownership
Co-founder Bin Chen says he wanted to launch a Boba Guys loyalty program for at least a decade. But he was always put off by two issues:
Many programs are far too expensive.
Other programs relied on outdated loyalty tactics.
The founding team dreamed of more: they weren’t interested in digital stamp cards and didn’t want to pay sky-high prices for bespoke app development and ongoing maintenance. Constructing marketing campaigns via Instagram or TikTok also seemed counter to their goals — they wanted to own their program and customer data instead of relying on a third-party algorithm.
With the rise of progressive web apps, they noticed far more affordable, scalable, and quicker-to-market options, and one solution quickly stood out. Hang clearly offered the most innovative, affordable take on loyalty programs.
“We wanted a semi-in-house solution so we could control our platform. When you're at the whim of others, you don’t own your audience. We don't want someone else’s algorithm to determine whether customers see our content.”
Solution
Hang built Boba Guys an easy-to-use platform with a wide range of integrations
The culture fit was immediate: Hang innovated on anything Boba Guys needed, adding features on the fly and creating the exact program Boba Guys wanted, including:
Cross-platform compatibility — Boba Guys was an early Square adopter, so Hang ensured the platform integrated seamlessly with the loyalty program.
Full platform control — Boba Guys owns the relationship with their audience. They use Hang as a portal and communication channel to interact with guests and solicit feedback.
Affordability — Working with Hang is far cheaper (and more effective) than hiring a developer team to create an app in the iOS or Android environment.
Another bonus? Hang’s loot boxes mirror the gaming world, which speaks to Boba Guys’ audience. Here’s how the program works:
Intuitive sign-up — Customers can sign up at the cash register, and their account goes live instantly.
Immediate rewards — Instead of a complex gaming process, Boba Guys keeps rewards simple and immediate: customers get their first reward just for joining.
The Boba Guys Passport app’s usability and easy-to-understand rewards system changed consumer behavior. People interact with it even when they’re not at a brick-and-mortar location. They’re completing quests, learning how to add the pass to their Apple wallet, and saving it to their home screens — and it’s happening organically.
“Hang is so nimble. They’re open to new ideas and willing to adjust on the fly. They worked really, really closely with us to get us the program we wanted.”
Results
Boba Guys onboarded 10,000 loyalty program members in 40 days
Boba Guys has always operated faster than most brands, and Hang has moved at their speed from day one, helping them hit 10,000 members in less than six weeks.
It also became clear that Boba Guys’ customers really were more loyal to the brand. People who typically came to the shop once a month now show up noticeably more often, a change Bin attributes to receiving a loyalty incentive at every visit.
Take a look at the results:
10,000 customers onboarded in 40 days
244% increase in visit frequency
3.5x increase in spend for loyalty members vs. non-loyalty members
As Boba Guys works toward 20,000 loyalty program members, they remain focused on their brand values. They want to provide customer recognition beyond transactions with consistency and easy access. Their goal is to surprise and delight their customers and build a community.
That’s why they’re hyped to keep working with Hang — Boba Guys is doing something that’s never been done before, and Hang is the open-minded, flexible partner that has enabled them to realize their vision.
“We don't believe in purely transactional loyalty programs. As we evolve our program past the first 10k users, we will start implementing more exciting features that make the experience fun. It’s going to be about creating surprise and delight.”
Reply