How to Start a Loyalty Program for Your Small Business (Step-by-Step)

Starting a loyalty program for your small business is one of the highest-return investments you can make in customer retention. Here is how to do it, from deciding on the program structure to having your first customer scan their pass on day one.

Step 1: Choose Your Program Type

The most important decision is the reward structure. There are three main options:

Stamp card — Customers earn one stamp per visit (or per purchase above a minimum). After a set number of stamps, they earn a reward. This is the simplest structure and works for most cafes, bakeries, and quick-service businesses.

Points program — Customers earn points based on how much they spend. Better for businesses where transaction sizes vary, like restaurants or retail stores.

Discount pass — Customers get a standing member discount on every visit. No tracking required. Good for businesses with very regular customers who prefer a VIP feeling over working toward a reward.

For most small businesses starting out, a stamp card is the right choice. It is easy to explain, easy to understand, and easy to track.

Step 2: Set Your Reward Threshold

For stamp programs, the key question is: how many stamps until a reward?

A good rule of thumb is 8–10 stamps. This is achievable for a regular customer in 2–4 weeks — close enough to feel motivating. More than 15 stamps and the reward feels distant; fewer than 6 stamps and the margin impact can be significant.

For the reward itself, make it genuinely valuable:

A free item of similar value to their usual order works best (a free coffee, a free dessert, 25% off)
A small discount (10% off) feels underwhelming and reduces participation rates
A reward that requires buying something still (like "buy one get one") creates friction

Step 3: Pick a Platform

You have three options:

Paper punch cards. Zero upfront cost, but zero data, zero fraud prevention, and a poor customer experience. Many cards never get redeemed because they are lost.

App-based digital loyalty (like Stamp Me). Customers download a separate app to track their stamps. This creates enrollment friction — many customers decline to download another app.

Native wallet passes (like Revio). Customers add a digital pass directly to Apple Wallet or Google Wallet — no download required. The pass lives alongside their payment cards and is always accessible.

For new programs, native wallet passes consistently produce the highest enrollment rates because there is no app to download.

Step 4: Design Your Loyalty Card

A digital loyalty card should include:

Your logo
Your business name
The reward text ("Collect 10 stamps, get your next coffee free")
Your brand colors

Keep it clean. Customers see this in their wallet dozens of times as they scroll past it. A simple, branded design is more memorable than a busy one.

Most platforms include a drag-and-drop card designer. The process takes 10–15 minutes.

Step 5: Generate Your Enrollment Materials

Once your card is designed, you need a way for customers to discover and join the program.

QR codes for physical displays. Print QR codes for:

A small sign at the counter or register
Table tents (for sit-down restaurants and cafes)
The back of receipts
A sticker on the door

A direct link for digital channels. Share the enrollment link on:

Instagram and Facebook bio
WhatsApp messages to existing customers
Your website

The easiest customer acquisition for a new loyalty program is in-store, with a physical QR code at the point of sale. Start there.

Step 6: Brief Your Staff

Staff buy-in makes or breaks a loyalty program launch. For every customer who doesn't know about the program, that is a missed enrollment.

Train staff to say, at the start or end of every transaction: "Do you have our loyalty card? Scan this QR code to add it to your wallet — it's quick and there's nothing to download."

For scanning: staff use the Revio app (or any QR scanner) on their phone to scan the customer's pass. It takes 2–3 seconds. The customer's stamp count updates immediately.

Step 7: Launch with a Bonus Offer

The best way to drive early enrollment is a limited-time bonus. Examples:

"Sign up this week and get 3 stamps on your first visit instead of 1"
"Join today and start with 2 stamps already on your card"
"Double stamps on all orders this week"

Announce it on social media, WhatsApp, and with in-store signage. A small launch push generates momentum that self-sustains as enrolled customers tell others.

Step 8: Monitor and Adjust

After 2–4 weeks, check your dashboard for:

Total enrollments — How many customers have joined?
Active users — How many have returned at least once after enrolling?
Stamp distribution — What is the average stamp count per customer? If most customers have 1–2 stamps and nothing more, the program is not driving return visits.
Redemptions — Are customers reaching their reward? If almost nobody is reaching the threshold, it may be too high.

The most common adjustment after launch is reducing the stamp threshold if redemption rates are low.

Common Mistakes to Avoid

Setting the stamp threshold too high. A 15-stamp card for a cafe visited once a week takes four months to complete. Few customers make it.

A reward that requires another purchase. "Buy one get one" means the customer has to spend money to redeem. "Get one free" is simpler and more motivating.

Not mentioning the program to customers. Every week without a staff reminder is a week of missed enrollments. The program has to be part of the checkout conversation.

Letting it go stale. If you run the same program for a year without any promotions or variations, engagement drops. Use push notifications to run short-term double-stamp events or limited-time offers once a month.

Start your loyalty program today with a free 14-day Revio trial. Most merchants have their first program live within an hour of signing up.