Gift cards and loyalty points get lumped together as "retention tools", but they do different jobs. A gift card is usually bought by one person and spent by another, often someone who has never been in. Loyalty points reward people who already come back. Most restaurants benefit from both.
What gift cards do well
- New customers: the person who receives the card discovers you on someone else's money.
- Cash up front: you're paid when the card is bought, not when it's spent.
- Seasonal peaks: holidays, birthdays and teacher gifts.
Sell them on your website, not only at the counter. A card that can be bought at 11 p.m. and emailed to the recipient is a last-minute gift you'd otherwise miss.
What loyalty points do well
- Frequency: a regular who's close to a reward orders one more time.
- Your channel: points earned on your own website give customers a reason to skip the delivery app.
- A customer list: members join your list, so you can tell them about a new dish or a quiet-night offer.
Rules that protect your margin
- Points as a discount, with a cap. Decide what a point is worth and the most of a bill points can cover.
- Earn on food, not on tax or delivery. Points on the items total keep the program honest.
- No points on cancelled orders. Award them when the order is completed.
- Opt-in. Let customers choose to join at checkout; it keeps your list clean and your messages welcome.
Online and in store: one balance
The fastest way to annoy a regular is points that only work in one place. If someone earns points ordering pickup on Tuesday, they should be able to spend them at the counter on Saturday. That only works when loyalty lives in the same system as your POS and your website.
How it works on NEAPES
Customers opt in at checkout, earn points on online orders and in-store sales into one balance, and redeem them as a discount. You set the point value and the most of a bill points can cover, and points are earned when the order is billed. Gift cards can be bought on your website and emailed, or issued at the counter, and can pay for part or all of an order over as many orders as the balance lasts. Read more on our loyalty program and gift cards page.
Frequently asked questions
Should a restaurant offer gift cards or a loyalty program?
Both, if you can. Gift cards bring in new customers through gifts; loyalty points bring regulars back more often.
How do I stop a loyalty program eating my margin?
Set a value per point, cap how much of a bill points can cover, earn points on the items total only, and award them when the order is completed.
Can loyalty points work online and in store?
Yes, when loyalty is part of the same system as your POS and ordering website, so customers have one balance everywhere.
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