How a multi-phase research process helped Costa develop a new approach to the afternoon

The Puzzle

Costa’s afternoon sales had declined significantly in recent years across a range of customer segments.

Our job was to understand the practical and emotional drivers of this decline – both in relation to Costa’s product and service and broader trends and customer needs in the afternoon.

Our insights were needed to inspire a mix of new ideas for further evaluation and refinement.

The Pieces

Our first task involved evaluating the stores in detail and their ability to meet customers’ needs in the afternoon – we did this using accompanied visits with a range of customers, as well as sending off some customers on their own for an ‘unmediated’ review of the situation.

This gave us a range of insights – relating to health, financial, value and service/performance issues – with which to develop new ideas with the client team.

Two dozen of these were then tested in a series of customer workshops, involving a sorting and evaluation exercise we developed for the project.

The Picture

The research provided a clear understanding of the multiple factors affecting Costa’s sales in the after-noon – things that Costa needed to do better with its existing offer, and new things required by new consumer trends.

We also helped refine a package of potential solutions for the future, involving new food and drink products, as well as new promotions and offers.

Perhaps the most useful output for Costa was a clearer sense of what not to do – ideas that weren’t right for the brand or which didn’t properly address new customer needs.