Guide · Updated

How to design a loyalty programme that brings customers back

Short answer

Start simple: a points or stamp programme that works on every channel, identified by phone number. Add tiers once you know who your top customers are, and a prepaid wallet if customers visit often. The best programmes reward the next visit, remind members before rewards expire, and never make staff do manual work at the counter.

The five common loyalty models

ModelHow it worksBest for
Stamp cardBuy 9, get the 10th freeCoffee, boba, single-item shops
PointsEarn points per RM spent, redeem for rewardsRestaurants and cafés with varied baskets
TiersSilver, Gold, Platinum with better earn rates or cashbackBrands with a clear group of heavy regulars
Prepaid walletTop up RM100, get RM110 creditSalons, cafés and bakeries with frequent visits
Paid VIPMembers pay a yearly fee for ongoing perksPopular brands with strong demand

Example starting rules

  • Earn 1 point for every RM1 spent, on every channel (counter, online, app, table QR).
  • Sign-up reward: a small free item on the next visit, not on the same bill.
  • Birthday voucher valid for one week, with a reminder two days before it expires.
  • Tiers reviewed every 12 months; upgrade instantly, downgrade only at the review.

Mistakes that kill loyalty programmes

  • Separate memberships for dine-in and delivery, so customers never see their full balance.
  • Rewards too far away: if the first reward needs 20 visits, most people never get there.
  • Staff typing points by hand at a busy counter, which leads to mistakes and skipped scans.
  • Messaging members only with discounts, which trains them to wait for the next promotion.
  • No reminder before vouchers expire, so rewards quietly go unused.

What to measure

  • Share of sales from members versus walk-ins.
  • How many members came back within 30 and 90 days.
  • Voucher redemption rate.
  • Members who are "slipping away": regulars who have not visited for longer than usual.
FAQ

Questions answered

Points or stamps — which is better?

Stamps are simpler and work well for single-product shops like coffee or boba. Points suit restaurants where basket sizes vary, because customers earn in proportion to what they spend.

Should a loyalty programme give discounts?

Prefer rewards that bring people back, such as a free item on the next visit, bonus wallet credit or tier perks, over straight discounts that only lower the price of today's bill.

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