How to start a loyalty scheme for a small shop
A loyalty scheme gives regulars a reason to come back to you instead of the supermarket. Here is how to set one up in an afternoon, with a reward that pays for itself.
Hartley's Deli
Hi Charlotte
152points
48 points to £5 off
Show this at the till
H6T2 8MRW
Six steps to a scheme that works
Pick one simple reward
Points per pound and one clear reward, like £5 off at 200 points, is easier to explain at the till than tiers or stamps for different products.
Work out what it costs
The cost is the reward divided by what a customer spends to earn it. £5 off after £200 of shopping gives back 2.5% of what they spend. Most small shops aim for 2% to 5%.
Make joining take a minute
A QR code by the till that opens a short form works best. Ask for a first name and a mobile, nothing else. Long forms lose people at the counter.
Tell every customer
For the first month, mention it at the till every time. A welcome bonus, like 50 points for joining, gives people a reason to say yes on the spot.
Ask for offers separately
Points and marketing are two different agreements. Ask about offers with its own tick box, and keep a record of what each customer agreed to.
Look at it after a month
Check how many people joined, how many came back, and who has gone quiet. Then send one offer to the quiet ones and see who returns.
What a reward really costs
Points only cost you something when they turn into a reward. Customers who never reach a reward cost nothing.
A regular spending £40 a week earns 40 points a week. With £5 off at 200 points, they get £5 off every 5 weeks, which is 2.5% of what they spend.
The calculator on our homepage works this out for any weekly spend.
Three common setups
- £5 off at 200 points, 1 point per £12.5% back
- £2 off at 100 points, 1 point per £12% back
- £3 off at 60 points, 2 points per £110% back
- Welcome bonus25 to 50 points
- Double points dayYour quietest day
Mistakes that make schemes fail
A reward that is too far away
If a regular needs six months to reach it, they forget. Pick a reward that a weekly customer reaches every 3 to 6 weeks.
Staff who skip it when busy
If finding a customer takes more than a few seconds, it gets skipped in a queue. The last 4 digits of their mobile or a quick scan keeps it fast.
Offers to everyone, every week
Too many texts and people stop them. One or two a month, sent to the right people, works better than a weekly blast.
Questions
How much should a loyalty reward be worth?
Most small shops give back between 2% and 5% of what customers spend. For example, £5 off after £200 of spending is 2.5%. Cafés with higher margins often go higher.
Do I need an app for a loyalty scheme?
No. A card that opens in the phone's web browser works for most customers and nobody has to download anything. Tillkeep works this way.
Do I need customers' permission to text them offers?
Yes. Under UK rules you need their agreement to marketing texts, kept separately from joining the scheme, and every text needs a way to stop them.
How long does it take to set up?
With Tillkeep, about an afternoon: choose your reward, print your QR poster and show staff the till screen.
See it working in your shop
Free while we set up our first shops. No contract, and we agree a price with you before anything is charged.