Coffee shop loyalty program: how to set it up and what to give away

Why a coffee shop is the ideal business for a loyalty program

Low checks, frequent visits and plenty of competition a few blocks away. Your customer can buy coffee anywhere; a loyalty program gives them a concrete reason to choose you again tomorrow. And since they come often, they see their progress quickly, which is what makes a program work.

Stamps or points?

For most coffee shops the practical route is points with a first reward reachable in five to eight visits. It feels as simple as stamps but doesn't leave out the customer who also takes a pastry or a bag of beans.

What to give away

• A house drink as the first reward: it costs little and feels like a real gift.
• A size upgrade or an extra shot, as a closer, smaller reward.
• Today's pastries that would otherwise go to waste at closing.
• A bag of coffee beans as the big reward for your most loyal customers.
• A drink on their birthday: one of the most appreciated messages.

Tiers for your everyday customers

If you have customers who come daily, tiers make them feel recognized: after a certain amount of spending they move to a tier with a permanent perk, like a discount on redemptions or a seasonal drink before anyone else. A tier that's earned and never lost is a strong reason not to switch to the coffee shop across the street.

From paper punch card to digital

The paper punch card is a coffee shop classic, but it has three problems: it gets lost, it can be faked with a similar stamp and it doesn't tell you who your customer is. A digital loyalty card in Apple Wallet or Google Wallet solves all three: the customer always has it on their phone, every transaction is recorded and you can send them a note when the seasonal drink arrives.

For the switch, offer anyone with a paper card to move their stamps to the digital one. It's the best excuse to sign up your regulars in a week.

Don't slow down the line

At rush hour, any extra step at the counter gets skipped. Recording points has to take seconds: the customer shows their card's QR, the barista scans it with a tablet or phone and moves on to the next order. If you have a point of sale, ideally points are added automatically at checkout.

How to know it's working

• Sign-ups per week: if they drop, your team stopped offering it.
• Monthly visits per member compared with before.
• Members who stopped coming: who hasn't been back in 30 or 60 days, so you can invite them back.
• Satisfaction: a short QR survey at the counter tells you whether the coffee, the wait or the service is pushing anyone away.

How SnapRate does it

SnapRate gives your coffee shop a points, tiers and rewards program with a card in Apple Wallet and Google Wallet, no app needed. Baristas add points by scanning the card's QR from a browser-based terminal, or points come in automatically through a custom integration with your point of sale. You can send messages to the card, schedule the birthday greeting and see which members are active, at risk or dormant. Up and running in 3 days.

See the loyalty program or the restaurants and coffee shops page.