Loyalty points or stamp cards?
Choose by purchase pattern, basket variation, reward choice, staff workflow, and how easily a customer can understand progress.
Loyalty points vs stamp cards: choose the right modelDecision frameworks for merchants designing, comparing, and operating a loyalty program. Each resource separates verified product behavior, illustrative assumptions, and questions that still need review.
01 / Program choice
A useful program starts with a purchase pattern customers and staff can explain, whether that is a visible stamp milestone or a points balance.
Illustrative member view
Choose by purchase pattern, basket variation, reward choice, staff workflow, and how easily a customer can understand progress.
Loyalty points vs stamp cards: choose the right modelEach guide stands alone, but they were written to be read in this order: decide what you are buying, cost it, pick the mechanic, choose the format, then put something in a customer's hand.
If you arrived with one question, start with the row that matches it.
| The question you have | Start with | What you leave with |
|---|---|---|
| Where do I even begin? | How to start a loyalty program | Four decisions, the sentence staff say, and a review date with the number that would change the rule |
| What will this cost each month? | How much a loyalty program costs | A total-cost formula, and the conversion from a stamp threshold to a discount rate and back |
| Stamps or points? | Loyalty points vs stamp cards | A lead of two or more signals names the model to test first |
| Paper, app or wallet pass? | Digital loyalty cards, explained | A side-by-side table of the three formats and what happens to each after it is handed over |
| What about customers without a smartphone? | Digital loyalty cards, explained | Lookup by email or member code, counter enrolment without an email address, and printed cards mapped to the same record |
| How many stamps should the card hold? | Loyalty card template | The discount on list price for a six-, eight-, ten- and twelve-stamp card |
A reward is a discount with a delay, and every guide here reduces to the same division: what the reward costs you, divided by the spend a customer needs to earn it. A stamp threshold is that discount rate in disguise, so moving the threshold moves the rate.
| Visits to a reward | Spend needed at $5.50 a visit | Reward costing $1.30 in goods |
|---|---|---|
| 6 | $33.00 | 1.30 ÷ 33.00 = 3.9% |
| 8 | $44.00 | 1.30 ÷ 44.00 = 3.0% |
| 10 | $55.00 | 1.30 ÷ 55.00 = 2.4% |
Illustrative example — not a customer result. The $5.50 visit and the $1.30 reward cost are placeholders; substitute your own. Cost the reward at what it costs you to make when the free item would not otherwise have been bought, and at its menu price when it displaces a real sale: the same ten-visit card is 2.4% on the first basis and 10% on the second.
Points follow the same rule. One point per dollar with 100 points buying $5 off is a flat 5%, which is why choosing between points and stamps is a question of clarity for staff and customers, not of cost. For the full model, including the software line, read how much a loyalty program costs.