the coffee collective is seeking to identify customers who want a unique coffee drinking experience and are open to a loyalty rewards program. in doing so, the coffee collective is identifying its target

The Coffee Collective is identifying its target market (also acceptable: target customer segment or target audience).

Quick breakdown

They are focusing on:

• People who want a unique coffee-drinking experience (a specific need/desire).
• People who are open to a loyalty rewards program (a specific behavior/attitude).

Putting those characteristics together to decide which customers they want to serve and design marketing for is exactly what marketers call defining or identifying a target market. TL;DR: The correct marketing term is target market.