Retailers seeking to boost repeat visits need a clear framework on how to start a loyalty program that delivers measurable results. The decision depends on customer behavior, purchase patterns, and how rewards are tracked at the point of sale. A loyalty program is not about discounts alone. It is a structured system designed to recognize repeat customers and influence future buying decisions.
This guide explains how to start a loyalty program using practical criteria. It focuses on fit, structure, and measurement so store owners can make informed decisions before launching.
Is A Loyalty Program A Good Fit For Your Store?
Assess Your Location And Customer Flow
The first step is to look closely at where your store sits and who walks through the door. Some shops are nestled in a strip centre within walking distance of a neighborhood. Others sit near a busy gas station with people in a rush. These two situations behave very differently.
A neighborhood store sees the same faces on a consistent basis. Those regulars can build habits, save up rewards, and decide to support your store because they feel connected to it. In that setting, a loyalty program can help you keep current customers and bring in more people from the community.
Key Takeaway: A loyalty program works best when you already see repeat customers and want to give them a reason to keep choosing your store.
When A Loyalty Program May Not Pay Off
A store right next to a gas station usually sees passing-through traffic. Many customers stop for gas, grab a snack or pizza, pay, and head out. They are often willing to pay a little more because they are in a hurry. Most of them will not return often enough to care about points or rewards.
In that case, a loyalty program might not be in your best interest. You would track people who never reach the level where rewards matter. If you only have one or two locations and most of your volume comes from quick, one-time visits, your time and budget may be better spent on other improvements.
How to Start a Loyalty Program Step by Step
Choose The Type Of Program That Fits Your Customers
Once you know a program makes sense, you can plan how to start a loyalty program in a way that matches your shoppers. We usually think of three basic types:
- Points programs where customers earn points based on spending.
- Percentage programs where customers earn a set percentage back.
- Spend-based rewards where higher yearly spend unlocks better benefits.
Some stores tie higher spending to special access. For example, customers who spend a certain amount in a year may get access to allocated products that others cannot buy. Other stores keep it simpler and just offer discounts once a customer reaches a spend level. The key is to match the style to what your customers value.
Pro Tip: Start with one clear structure and simple rules. You can always add tiers or extra perks later once customers and staff are comfortable.
Measure Loyalty And Rate Of Return
A program needs more than signups. You also need a way to measure whether people truly become loyal. We suggest tracking both existing and new customers. Look at who joins, how often they return, and how much they spend over time.
You want to see that members visit more often or spend more than similar non-members. You also want to see that new customers who join turn into repeat buyers. This helps you judge whether the program is creating the loyalty you hoped for or just handing out discounts.
Need expert help with how to start a loyalty program? Contact Cheers POS for a free consultation.
When Is The Best Time To Launch Your Program?
The best time to roll out a new loyalty program is when you change your point of sale solution. A new system is a natural moment of change. Employees expect to learn something new. Customers see new screens and may notice new prompts at checkout.
This is the ideal time to start collecting customer information and adding people to your system. Staff can explain that you are updating your technology and offering rewards for regular shoppers. Customers are more open to joining because everything already feels fresh.
Key Takeaway: Launching your program when you switch POS systems helps staff, customers, and processes move into the new routine at the same time.
Build A Strong Loyalty Program With Cheers POS
A solid loyalty program starts with the right setting, the right structure, and clear ways to measure success. We help you review your location, your customer flow, and your goals so you can choose rewards that make sense for your community. Our team guides you step by step on how to start a loyalty program that supports real loyalty instead of random discounts.
If you are ready to reward regulars, attract new customers, and link your loyalty program directly to your POS, we are here to help. Contact Cheers POS today to schedule a demo and see how a tailored loyalty program can support your store for years to come.
