Loyalty programme: a guide for local businesses

What is a loyalty programme?

A loyalty programme is a set of simple rules that reward a customer for coming back: a stamp per visit, points based on the amount spent, a gift after a certain number of visits. The best-known medium is the loyalty card, on paper or on the phone.

The goal isn't to give things away, but to turn an occasional customer into a regular. A regular spends more over the year, recommends your business and is more forgiving on a busy day.

The 5 main types of programme

• The stamp card: one stamp per visit, a reward when the card is full. Ideal for frequent purchases with a steady basket (café, bakery, hairdresser).
• Points: customers collect points based on what they spend. Best when basket sizes vary a lot (delicatessen, wine shop, fashion store).
• Tiers: the more a customer visits, the higher their tier and the better their perks. Tiers give your best customers something to aim for.
• Referrals: a loyal customer brings a friend, and both are rewarded. It's the most cost-effective way to attract new customers (see the referral guide).
• Exclusive offers: previews, birthday offers, invitations. They cost little and make customers feel recognised.

Which programme is right for your business?

Start from how often your customers visit. If they come weekly or more, a stamp card with 8 to 10 visits works very well. If they come once a month, aim for 5 or 6 visits, otherwise the reward feels too far away.

If your baskets vary a lot, go for points: otherwise the customer buying one €8 bottle and the one buying three at €40 earn the same. In every case, add referrals: they cost one reward and bring you a customer you wouldn't otherwise have had. To set the right threshold, follow the method in the guide how many stamps on a loyalty card.

How much does a loyalty programme cost?

The main cost isn't the tool, it's the rewards. Count their purchase cost, not their selling price: a free coffee costs you a few tens of cents, not the menu price. Spread over the number of visits needed to earn it, a well-chosen reward often represents just a few percent of the revenue the customer generates.

Then there's the medium. A paper card costs next to nothing but can't tell you who comes back. A digital card costs a subscription (FidèlPro: from €35 a month) but lets you win customers back, announce your offers and measure results. To estimate what loyalty could bring you, use the profitability calculator.

Launch your programme in 5 steps

1. Set a goal: bring customers back more often, fill a quiet slot, attract new customers.
2. Choose the reward: appealing to the customer, inexpensive for you (see 20 reward ideas).
3. Set the threshold according to how often customers visit.
4. Train your team: offer the card at every checkout, in one sentence.
5. Make it visible: QR code at the counter, in the window and on the receipt.

Mistakes that make a programme fail

• A reward that's too far off: if it takes more than two or three months to earn, most customers give up.
• A programme the team forgets to offer: without an offer at checkout, very few customers sign up on their own.
• An app to download: many customers won't install an app for a single shop. A card with no app removes that hurdle.
• No follow-up: a customer who stops coming never gets a reason to come back. See how to win back inactive customers.

Measure what your programme brings in

Track three numbers every month: sign-ups, visits by members and rewards redeemed. If members come more often than other customers, the programme is working. To put it in money terms, multiply the extra visits by your average basket, as explained in the guide how much a loyal customer is worth.

Loyalty programmes and GDPR

A loyalty programme collects personal data: first name, contact details, visit history. You must inform customers, collect only what's needed, ask for consent before sending them offers and let them delete their data. Details are in the guide loyalty cards and GDPR.