A loyalty program brings guests back, but a badly set-up one simply gives away profit. Here are the two main mechanics available in Goovii and when each works better.
Tiers with a discount
A guest moves up a tier after a certain number of orders or amount spent and gets a permanent discount — say 3%, 5% or 10%. The register applies the discount by itself.
- Pros: easy to explain, and the guest feels the discount right away.
- Cons: people who would have come anyway also get it, and it reduces every receipt.
Points (bonus) system
For every purchase the guest earns points and can use them to pay for part of the next order.
- Pros: the bonus only works when the guest returns; you can cap the share of a receipt payable with points and set an expiry for points.
- Cons: the rules need explaining, and unused points do not motivate anyone.
What a cafe should choose
- A coffee shop with regulars — points: people come daily, and points add up fast.
- A cafe with a high average check and rarer visits — tiers: a discount for those who have already spent a lot is valued more.
- A chain — either mechanic, but shared across all venues so the guest is recognised everywhere.
In Goovii both mechanics can be combined: the tier gives a discount, and points accumulate on top.
How not to give away your profit
- Cap the maximum share payable with points — for example, 50% of the receipt.
- Set an expiry for points so they do not pile up for years.
- Compare the discount with your cost: a 10% discount on a drink with 40% food cost is a quarter of your margin.
- Watch the program statistics: average discount and total points balance.
What else brings guests back
- gift certificates — bring in new guests;
- guest campaigns — remind those who have not visited for a while, or send birthday greetings;
- the Goovii guest app — bonuses from all venues on one phone.
How to set it up — in the articles Setting up 3 types of loyalty programs and Loyalty programs and promotions at the register.