Loyalty programme
Customer loyalty programme: types, examples and how to set one up
A customer loyalty programme is a set of rules that rewards people who come back: for example, a stamp for every visit and a free treat when the card is full. To set one up, choose the behaviour to reward, the type of programme (stamps, points, prepaid packages or refer-a-friend), a target your margins can sustain and a rule staff always apply; then measure confirmed visits and redemptions.
Updated by Radman Sattari, Founder of Iterum
How to set up a customer loyalty programme in 5 steps
A customer loyalty programme is set up in five steps, in this order: the behaviour to reward, the type of programme, the target and reward, the rule for staff, and measuring the results.
Choose what to reward
A visit, a purchase or a completed service: something staff can check at the counter.
Choose the type of programme
Stamps, points, a prepaid package or refer-a-friend, depending on how your customers buy.
Set the target and reward
Start from the reward’s real cost and how often your customers return, not from another shop’s target.
Write the rule
What counts, who confirms it and how it is redeemed, in one sentence every member of staff repeats the same way.
Measure and adjust
Enrolments, confirmed visits, returning customers and redeemed rewards, comparing similar periods.
What types of loyalty programme are there?
The most common types of loyalty programme in cafés, salons and shops are six: stamp cards, points cards, prepaid packages, refer-a-friend, status tiers and cashback. They differ in what is counted and which business they suit; the table also shows which ones Iterum (by FIDUS) handles and which it does not.
Many programmes combine two types, for example a stamp card with refer-a-friend switched on. To choose between the first two, see stamps or points; packages are explained in the prepaid punch card guide and word of mouth in the referral programme for small businesses.
| Type | How it works | Suits you when | With Iterum |
|---|---|---|---|
| Stamp card | One stamp per eligible visit or purchase; the reward unlocks at the target | Spend is similar every time: coffee, blow-dry, car wash | Yes, on every plan |
| Points card | Points in proportion to spend, used for one or more rewards | Spend varies a lot from one visit to the next | Yes, on every plan; staff enter the points, they do not come from the receipt |
| Prepaid package (punch card) | The customer pays in advance for sessions or entries and one is deducted at each visit | You sell services in courses: blow-dries, treatments, classes | Yes, from the Pro plan; payment stays outside Iterum |
| Refer-a-friend | A reward for whoever brings in a new customer and, often, for the friend too | Customers already talk about you | Yes, on every plan, off until you switch it on for the card |
| Status tiers (silver, gold, VIP club) | The more often you return or spend, the higher your tier and the more benefits you get | You have many customers and different benefits for each tier | No: Iterum does not manage customer tiers |
| Cashback | Part of the spend comes back to the customer as credit to use later | Your till calculates the credit by itself | No: Iterum has no cashback |
Loyalty programme examples for local businesses
These loyalty programme examples show what to count in six different businesses: they are patterns to adapt, not recommended targets or measured results.
Each sector has a guide with data and rewards: cafés, restaurants, hair salons, gyms and shops.
| Business | What to count | Type of programme |
|---|---|---|
| Café | A breakfast or a coffee at the counter | Stamps, with a small, frequent treat |
| Restaurant or pizzeria | A meal, at lunch or dinner | Stamps per meal or points on spend |
| Hair or beauty salon | A completed service | Stamps, plus a prepaid package for treatments booked in courses |
| Gym | One entry a day | Stamps on entries or a punch card for classes |
| Shop | A purchase above a minimum spend | Points in proportion to spend |
| Any business | A friend who actually comes in, not just a sign-up | Refer-a-friend, alongside the main card |
Start with a customer habit you want to recognise
Decide which behaviour matters to your business: a visit, a particular purchase or a completed service. Focus on customers who return in person and make sure the rule works across staff shifts.
A loyalty programme is practical when customers and staff understand the same rule. Do not count an enrolment as a return visit or confuse stamps with additional sales.
Write a simple rule staff can apply
Specify what earns a stamp, how many are needed, what the reward is and how to redeem it. If products, days or services are excluded, say so before customers enrol. Decide who may confirm visits and authorise rewards.
Examples to adapt: a café might count an eligible breakfast; an ice cream shop, an owner-selected purchase; a salon, a completed appointment. These are not measured results or recommended targets; they depend on costs and actual visit patterns.
If the reward is an item or a service given to people who collect a set number of purchases, the programme may count as a prize promotion under Italy’s DPR 430/2001: ask your accountant whether you need written rules, as the guide to loyalty scheme rules in Italy explains.
Check reward cost before choosing the target
Use the actual cost to your business, not the retail price. Illustrative example: if a reward really costs €1.20 and is earned after 8 visits, its theoretical cost is €0.15 per visit (€1.20 ÷ 8), assuming every earned reward is redeemed. Replace these values with your own.
This calculation excludes subscription, staff time and other expenses. It does not show whether the programme creates extra visits or margin. Try different targets in the reward cost calculator.
Make enrolment easy and keep the rule visible
Place the QR code where visits are completed and give staff a short sentence to explain the target and reward. With Iterum, customers scan the QR code, the card opens straight away in the browser, and on later visits they show its code; name and contact details are optional. Authorised staff scan and confirm the visit.
Test enrolment, scanning and redemption during a normal shift. An internet connection is required; Iterum does not automatically read receipts or payments and does not replace the POS. If you are still choosing the tool, the digital stamp card app guide explains what it needs and how to choose one.
To try the programme with real customers there is the 7-day trial; a payment card is required at activation.
How can you tell if a loyalty programme is working?
To tell whether a loyalty programme is working, compare four numbers with a similar period before launch: enrolments, confirmed visits, returning customers and redeemed rewards. Before launch, record visits, regular customers and existing promotions; afterwards, compare periods of the same length and season.
The panel records visits and redemptions; aggregate analytics and the customer list are included in every plan, while the new customers included each month and the active cards can vary; total customers are unlimited. These records describe programme activity but do not by themselves isolate the cause of changes in sales.
- Enrolments: how many customers take the card compared with those you serve. If few do, check how it is offered at the counter first, then the reward.
- Confirmed visits per customer: if they rise, customers are returning more often or staff are stamping more consistently; check both.
- Returning customers: the share of one period’s customers you see again in the next is the customer retention rate, with formula and examples.
- Redeemed rewards: if hardly anyone reaches the reward, the target may be high for how often your customers visit; if everyone gets it straight away, recheck the cost.
What Italians say they do with loyalty programmes: 2025 data
In the University of Parma Loyalty Observatory’s Consumer Research 2025, 90% of 1,200 Italian respondents said they actively participated in at least one loyalty programme; the definition included remembering to use a physical or digital card. The September 2025 online survey had 300 people in each of four generations, equal quotas rather than shares proportional to Italy’s population. Original UniPR report, pages 2 and 5.
In the same research, more than half of Gen Z and Gen Y shoppers say they talk about the programme to others, and around two in three in every generation say they read the programme’s messages. For a local business these are two routes worth testing, not guaranteed results: refer-a-friend and short messages such as birthday messages. The percentages count people who chose 5, 6 or 7 on a 1-to-7 scale (UniPR report, page 10).
This self-reported figure describes card use. It does not measure extra visits, revenue or Iterum’s effect, and cannot predict your business results. Use your own rules, costs and records to decide.
| Statement | Gen Z (18–28) | Gen Y (29–44) | Gen X (45–60) | Baby boomers (61–79) |
|---|---|---|---|---|
| “I actively talk to others about the loyalty programme” | 56% | 57% | 49% | 41% |
| “When I receive a communication or message from the programme, I take the time to read it” | 66% | 68% | 70% | 67% |
| “To make the most of the loyalty programme’s benefits, I change how I shop” | 58% | 61% | 56% | 46% |
Frequently asked questions
- How can a shop build customer loyalty?
- Choose a verifiable behaviour, define a clear rule and sustainable reward, explain the steps to staff, then compare visits and redemptions over similar periods.
- What are the types of loyalty programme?
- The most common are stamp cards, points cards, prepaid packages, refer-a-friend, status tiers and cashback. Iterum handles the first four: stamps, points and refer-a-friend on every plan, prepaid packages from the Pro plan.
- What is the difference between a customer club and a loyalty programme?
- Often none: “customer club” is another name for a loyalty programme. Sometimes it means a tiered club or one with a joining fee and members-only benefits; Iterum does not manage customer tiers or fees.
- How do I choose a loyalty programme target?
- Start from actual visit frequency and the reward’s cost to your business. Do not copy another shop’s target; examples are illustrative.
- Does a stamp card guarantee more returning customers?
- No. It records enrolments, confirmed visits and redemptions, but those records alone do not prove the programme caused visits or additional revenue.
- What can I measure with Iterum?
- The panel records visits and redemptions. Aggregate analytics and the customer list are included in every plan, with unlimited total customers; the new customers included each month and the active cards can vary.