What Is the Right Mobile Based Loyalty Program for a Restaurant or Retailer?

By Bijan Shahrokhi in Mobile Loyalty, Mobile Payment

There are various types of loyalty programs that can be offered by retailers and restaurant chains. Some of the more popular ones are visit based programs (e.g. punch cards) and sales volume based (e.g. Airmiles). What sets apart a successful program from others is the relevancy of the program to the specific merchant’s industry margins, customer shopping habits, frequency of visits, etc.


Let’s take the following two merchants as examples: A fast food chain and a fashion clothing retailer.


In the case of the fast food chain, customer spending per visit is usually within a tight range (e.g. $8 to $12). In this case, the merchant can offer a loyalty program that drives traffic to the stores, focusing on the number of visits. The merchant can accurately predict the customer spending per visit and as a result, build a model, which accurately estimates the cost and revenue of the loyalty program based on the number of visits. The merchant can offer a simple promotion like “For every 10 visits, you get a free meal”. Customers also like this because the outcome is clear and it is simple to keep track of the number of visits for both customer and merchant. Our integrated mobile solution can offer this promotion in a very simple and user friendly way.


In the case of the clothing retailer, the customer spending per visit has a much wider range (It could be just a t-shirt for $20 or it could be a set of clothes for a few hundred dollars). Here, offering a mobile prepaid and loyalty solution, which  focuses on total spending is more suitable (e.g. get 10 points for every dollar of spending. Every 10,000 points can be replaced by a $100 gift card). Our mobile prepaid and loyalty program can offer this feature as well.


As the mobile payment and loyalty space gets hotter, it becomes more important for the merchants to offer more relevant loyalty programs to their customers. The beauty of mobile loyalty programs is the ability of the merchant to quickly and simply set up customized loyalty programs for their customers.

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