Insomnia Cookies Moves From Indulgence to Repeat Treats With Data-Driven Loyalty

Cookies might seem like the ideal business.

They seem insulated from the vagaries of inflation and economic headwinds. Who doesn’t crave an indulgence here or there — a late-night snack that, delivered to one’s door, offsets the pressures of the workday?

In many ways, cookies are an ideal business, one that inspires loyal customers. But even they need a healthy reminder now and then. As Insomnia Cookies Chief Marketing Officer Tom Carusona told PYMNTS as part of the “Better Data, Better Outcomes” series sponsored by Banyan, the company’s latest iteration of its rewards program is designed to keep customers loyal, as repeat buyers, online and offline.

“As companies scale, and as media becomes much more distributed, it’s important to try and build as deep of a connection with your customers as possible … to make sure they feel embraced by the brand that they love,” Carusona said.

That’s easier said than done in the age of the distracted consumer, where we’re all on the receiving end of a constant stream of texts, emails, pop-up ads, and TikTok and Instagram feeds. What works for one customer — a text message, for example — might not work for another customer, who might be incentivized instead by a video feed in-store.

The challenge — and opportunity — in cementing loyalty becomes even more complex when companies such as Insomnia Cookies operate across digital and brick-and-mortar channels, with delivery in the mix too. Since its founding two decades ago in a dorm room at the University of Pennsylvania, Insomnia Cookies has grown to more than 280 locations across the United States, and it established a presence in the United Kingdom and Canada last year. Many of the company’s stores are located near or in college campuses and cities, satisfying the collective sweet tooths of students and other night owls, with a sweet spot demographic among 18- to 24-year-olds.

Earlier this month, the firm announced the launch of its new loyalty program, Insomnia Rewards, enabling consumers to create accounts, as well as earn and redeem points online or in-store for baked goods and ice cream.

As Carusona noted to PYMNTS, the latest iteration represents a broadening of its loyalty program that had been geared toward consumers making purchases through the company’s online channels.

“With our new program, we actually have the ability to earn and redeem in our stores,” he said.

The cross-channel efforts, and data that comes alongside those purchases, helps inform Insomnia with what Carusona termed a “full view of the customer” and how they use delivery, walk into a physical store or use order-ahead options.

Since the program is less than a month old, he said, “we’re just getting warmed up — to connect the dots and enable better customer experiences.”

The app represents the most natural conduit to an optimal customer experience — for speedy transactions and building loyalty, Carusona said.

“If you’re walking into a store, you pull up the app, and if there’s a reward in there, you can add it to your order, scan it with the barcode, and then redeem right on site,” he said. “If you’re not redeeming right away, you could just scan and bank those points.”

The data will also help crystallize a long-term trend of repeat buying, moving cookies beyond a simple indulgence toward a gifting occasion, for example. Customers could get friends and family 12-cookie boxes for special occasions and parties, Carusona said. Upcoming features might involve push notifications based on anniversaries or holidays.

Asked by PYMNTS about the preferred payment modalities, Carusona said that credit cards remain a key method embraced by Insomnia’s younger consumers. The company has also been working with select universities so that meal plan balances can be used to buy Insomnia’s baked goods and deliveries.

“We’re excited to finally have an experience that is much better for our consumers,” he said. “It’s going to be faster, it’s going to be more value, and it’s going to create a deeper emotional bond. That’s what we’re trying to do. One of our big goals is to create a community of ‘Insomniacs.’ We’re kind of a cult brand, and we want to make sure that our customers feel that they’re getting love from us, not just from cookies but from all these different channels. So, I’m excited that we’re finally moving in the right direction, and I can’t wait to see the results.”

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