· 8 min
A loyalty programme is one of the most cost-effective things a business can do to increase revenue. This guide walks you through exactly how to create one, from choosing the right format to getting your first 50 members.
A loyalty programme is one of the most cost-effective things a business can do to increase revenue. It does not require advertising budget, new staff, or complex technology. It just needs to exist — and your existing customers will do the rest. This guide walks you through exactly how to create one, from choosing the right format to getting your first 50 members.
82% of consumers are more likely to shop with a brand that has a loyalty programme they understand and find easy to use
Step 1: Understand what a loyalty programme actually does
A loyalty programme rewards customers for coming back. Every visit or every pound spent earns the customer progress toward a reward. When they reach the threshold, they claim something of value — a free item, a discount, or a special perk. The business benefits because the reward creates a reason to return that has nothing to do with price.
Step 2: Choose between stamps, points, or cashback
- Stamp card — customers earn one stamp per visit. Simple, fast, works well for cafés, salons, and any business with repeat transactions of similar value.
- Points — customers earn points per pound spent. Better for retail, restaurants, and businesses with varying basket sizes.
- Cashback — a percentage of every transaction becomes credit. More generous-feeling but harder to explain. Best for higher-spend businesses.
If you are setting up your first loyalty programme, start with stamps. They are the easiest for customers to understand and the quickest to set up. You can always move to points later.
Step 3: Set your reward threshold
The threshold is how much a customer needs to spend or how many times they need to visit before they earn a reward. Too low: the reward feels cheap and you give it away constantly. Too high: customers give up before reaching it. A practical guide: the reward should require roughly 8–15 interactions for most businesses.
Reward threshold examples by business type
- Café: 10 coffees = 1 free coffee
- Hair salon: 5 cuts = 1 free cut
- Grocery store: €100 spent = €5 off
- Retail shop: 12 visits = €10 voucher
- Gym: 20 classes = 1 free month
Step 4: Go digital — not paper
Paper loyalty cards have been replaced by digital loyalty systems for good reason: they cannot be lost, cannot be forged, and generate data. A digital loyalty programme works through a QR code that customers scan at your counter. No app download required. No hardware needed. Just a printed or displayed code and a platform that handles everything else.
Step 5: Create your loyalty programme online in under 10 minutes
- Sign up for a loyalty platform (Loyenix has a permanent free plan — no credit card needed)
- Name your programme (e.g. "The Petal Rewards Club" for a florist)
- Choose your reward model: stamps, points, or cashback
- Set your threshold and reward (e.g. 10 stamps = free item)
- Customise your card with your business name and colours
- Download or display your QR code at the point of sale
- You are live — tell your first customer about it today.
Step 6: Get your first customers to join
The most common mistake: setting everything up and then waiting for customers to find it. They will not. In the first two weeks, mention the loyalty card to every customer personally. Put the QR code somewhere visible — at eye level near the till. Add it to your receipts, your window, and your Instagram bio. The first 20 members are always the hardest. After that, it spreads on its own.
What are the real benefits of a loyalty programme?
- Increases visit frequency — customers with loyalty cards visit 20–40% more often.
- Raises average spend — customers spend more when they are close to a reward.
- Builds a customer list you own — not dependent on social media algorithms.
- Gives you data — you can see who your best customers are and when they last came in.
- Reduces price sensitivity — loyalty members are less likely to leave for a cheaper competitor.
- Word of mouth — happy loyalty members recommend businesses to friends.
How much does it cost to create a loyalty programme?
Three options: 1. Paper cards — almost free but zero data, fraud-prone, customers lose them. 2. Built-in POS loyalty (Square, Lightspeed) — expensive add-on, locks you to one payment system. 3. Dedicated loyalty app (Loyenix) — flat monthly fee from €19, works with any POS, full data ownership, free plan available. For most independent businesses, option 3 is the best value.
67% of customers who join a loyalty programme are still active members 12 months later — compared to 23% retention without one