What to actually give away

· By Sakib Abbas · 3 min read · Reviewed

The reward at the end of the card is the whole point of it. Choosing badly costs you either margin or momentum.

Most loyalty cards give away the obvious thing: one more of whatever the customer keeps buying. That is usually right, but it is worth understanding why before you copy it.

Give away what you already make

The best reward is something with a low cost to you and a clear value to them. A coffee that costs you thirty pence and sells for three pounds fifty is close to perfect. A voucher against anything in the shop is not — it comes straight off your margin and does not push anyone towards what you actually want to sell.

Avoid rewards people have to plan for

A reward that needs booking, a special trip or a minimum spend to unlock adds friction at the moment you least want it. The best ones can be handed over immediately, at the counter, with no arithmetic.

Let them choose, where you can

Offering two or three options at a milestone makes the reward feel personal and costs you nothing extra if they are priced similarly. It also stops the programme feeling stale for people on their third or fourth card.

Say what it is, plainly

"Free drink" is better than "a treat on us". People need to know what they are working towards for it to pull them back, and vagueness reads as a catch. Whatever you choose, put it on the card in words a customer can repeat to a friend.