Small business loyalty program

Pick by three numbers

Three inputs determine the right mechanic: weekly transactions, average ticket, and contribution margin. The right mechanic is the one that maps cleanly to those three numbers without distorting any of them.

• Weekly transactions under 200, average ticket $5–$15 → stamp card on paper or wallet pass.
• Weekly transactions 200–1,500, ticket $10–$50 → digital wallet pass with simple points.
• Weekly transactions above 1,500 OR ticket above $50 → points-with-tier software.
• Tickets highly variable (e.g. restaurants, spas) → spend-based points.

Reward cost should be 6–10% of cumulative spend

Below 4% the reward feels stingy; above 12% the program erodes margin. Use the stamp card reward calculator to size the reward correctly.

Decide what you will measure

A loyalty program without measurement is a marketing expense. Pick three numbers to track weekly: join rate, redemption rate, and incremental visits per active member. If you cannot measure these, the program is not a loyalty program; it is a discount.

The till is the moment of truth

Most loyalty programs fail at the till, not in design. A program that takes longer than five seconds at the till is silently dropped during the busy hours. Train the staff. Test with a stranger. Re-train when staff turnover happens.