Loyalty program
A loyalty program rewards customers for coming back. Each visit or purchase earns something, such as stamps, points or cashback, which the customer exchanges for a reward. For a local business its job is simple: turn a first visit into a habit.
What a loyalty program is
Every program has three parts: what customers earn, what they can get for it, and how they carry it. The classic version is a paper card with stamps. Digital programs keep the card in the phone, often in Apple Wallet or Google Wallet, so it is never left at home and the business can see who returns. More than 200 businesses run their program on Rewardly.
How it works for a café, salon or restaurant
- A café gives every tenth coffee free, because its regulars come often and buy one item at a time.
- A salon rewards spending rather than visits, since one appointment can be a trim or a full colour.
- A restaurant uses points or cashback, which suit bills of very different sizes.
What to watch
The reward has to be within reach. If a regular needs half a year to earn it, the program is invisible; if it comes after two visits, it costs too much. Offer the card at every payment, and judge the program by how many members come back, not by how many signed up.
Posts that use this term
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- How to launch a loyalty program that works: the plan to make before day one
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- Digital loyalty card as a growth toolThe most popular types of loyalty programs