Points, stamps or cashback? Which loyalty model fits your business
The first decision when setting up a loyalty program is the model: how the customer "counts" their progress. No model is better in general — there's the one that fits how your customers buy.
At a glance
| Model | How it works | Best for |
|---|---|---|
| Stamps | One stamp per visit; e.g. 6 stamps = 1 free item | Frequent purchases of similar value (coffee, car wash, haircut) |
| Points | Points based on spend; e.g. 1 point per euro | Purchases of varying value (restaurant, pharmacy, retail) |
| Cashback | A percentage of the purchase comes back as balance | Larger purchases, when you want a purely financial reward |
Stamps: the simplest model
A stamp card is the digital version of the familiar paper card. Customers immediately understand how far they are from the reward, and you don't calculate anything at the till.
- Pros: completely clear, fast at the till, ideal for frequent visits.
- Con: it rewards a cheap and an expensive bill the same. Fix: program terms that define what the reward covers (e.g. not specialty drinks).
Points: when basket size varies
With points per euro, customers who spend more are rewarded proportionally. The reward can be a product or a percentage discount once a threshold is reached (e.g. 100 points = 10% off).
- Pros: fair for varying purchases, flexible rewards.
- Con: slightly less immediate than stamps; customers need to see their balance easily.
Cashback: rewards as money
With cashback, a percentage of each purchase returns to the customer as balance for future purchases. It suits larger purchases and audiences who prefer plain financial value over gifts. The downside is that the reward feels like a discount and loses the "gift" feeling.
Examples by industry
- Café: stamps (6 coffees = 1 free). See loyalty program for cafés.
- Restaurant: points per euro with a discount. See for restaurants.
- Hair salon: a stamp per visit, or points if services vary a lot in price. See for hair salons.
- Pharmacy: points per euro. See for pharmacies.
Can you switch later?
Yes, but any change needs clear communication so customers don't feel they lost what they collected. That's why it's worth starting with the model that fits most naturally with how your customers buy.
What 4Loyalty supports
4Loyalty supports points and stamps, with a reward as a product or a percentage discount. Cashback is not supported. To get started, see how to launch a points program in 5 steps.