Customer loyalty system: what it is and how to set one up

What is a customer loyalty system?

A loyalty system is the set of rules and tools that rewards customers for coming back. “Loyalty program” usually means the offer the customer sees (e.g. buy 8 coffees, get one free). The system is everything that runs that offer: the card, how stamps or points are added at the counter, where customer data lives and how customers are notified.

For a small business it doesn’t have to be complicated. Clear answers to three questions are enough:

• What earns the reward? Visits, spend or total activity over time.
• How is it recorded at the counter? A rubber stamp, entering points or scanning the QR code on the card.
• What do you get to see? Who comes back and who hasn’t been in for a while.

We cover the basics of digital cards in what is a digital loyalty card.

Types of loyalty systems

It helps to think along two lines: how the reward is earned and where the card lives.

By reward logic:

• Stamp system: one stamp per visit, a reward when the card is full. The simplest option when your prices are close together.
• Points system: customers earn points as they spend and unlock a reward at a set balance. Suits businesses where the bill varies a lot.
• Tier system: based on total activity, customers move up a level and get perks that match it.
• Campaigns and coupons: a birthday treat, a win-back offer for customers who haven’t been in for a while, refer a friend. They work alongside the card, not instead of it.

By where the card lives:

• Paper card: easy to start, but it gets lost, the stamp can be copied and it tells you nothing about who comes back.
• Standalone app: can do a lot, but first asks customers to download it and sign up, and some give up at that step.
• Wallet card: the customer scans a QR code and on iPhone the card goes into Apple Wallet, with no app to install. On Android it opens as a page in the browser that can be saved.

What a good loyalty system should have

Feature lists can get long. These are the things that affect your day-to-day:

• Speed at the counter: a stamp should take seconds. With Dokun, staff scan the card’s QR code with their own phone; no reader is needed.
• Protection against abuse: customers shouldn’t be able to stamp their own card, and the same card shouldn’t be stamped twice in a row. In Dokun you set this with the “Stamp frequency” setting in the dashboard.
• Customer data: you should see who comes in and how often; a paper card never gives you that.
• Notifications and reminders: customers should hear about card updates or a running campaign. You choose the send time, and customers can turn messages off whenever they like.
• Privacy and consent: a privacy notice must be shown, and marketing messages need separate, optional consent. More in our KVKK and İYS guide.
• Reporting: how many cards were added, how many stamps and rewards were given and which QR location brings in customers.

Examples: café, hair salon and restaurant

The numbers below are examples; adjust them to your prices and how often your customers visit.

• Café: one stamp per coffee, a free coffee after 8 stamps (example). The QR code sits at the counter and on tables. More ideas in café loyalty program ideas and on the café loyalty card page.
• Hair and beauty salon: visits are less frequent and amounts vary, so points or tiers fit better, for example a discount on a blow-dry or treatment after 5 appointments (example). Birthday campaigns work well here. See the beauty salon loyalty card and barber loyalty card.
• Restaurant: a small QR card left on the table with the bill; points based on spend or a stamp per visit. On quiet days, a campaign to regulars. See the restaurant loyalty card.

How to set up a loyalty system

With Dokun, setup takes a few minutes:

1. Pick a ready-made template for your sector and add your logo, colour and reward.
2. Decide between stamps and points and set the goal.
3. Download the QR code from the dashboard as a table card, poster or sticker and print it.
4. Create staff accounts so everyone stamps with their own login.
5. Put the QR code at the counter and on tables, and get your first customer to add their card.

Where to place the QR code and how stamping works at the counter is covered in the loyalty card QR code guide. Switching from paper? The guide to moving from paper stamp cards explains how to bring existing customers along.

What does a loyalty system cost?

The cost is more than the monthly fee. Also factor in:

• the monthly or yearly price of the system, often depending on locations and staff,
• what the reward costs you (not its menu price),
• printing and reprinting for paper cards; a digital card can be changed without reprinting,
• the time your staff spend on it at the counter.

We compare pricing models and what to watch for in loyalty program pricing; Dokun’s plans are in the pricing section.

How to choose the right loyalty system

When comparing, look past the demo and think about what happens at the counter during a rush:

• Do customers have to download an app?
• How many steps does a stamp take, and is extra hardware needed?
• Can customers stamp their own card, and what happens if the same card is scanned twice?
• Is consent for marketing messages collected properly?
• Can you try it without entering a card?

A full checklist is in how to choose a loyalty app. You can try Dokun free for 7 days: get started, no credit card needed.