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Loyalty Programs & Reward Cards: Know Your Options

Trust is still a number one priority when it comes to making purchasing decisions. Building an impactful loyalty program is the perfect opportunity to build that relationship with your customers. Getting started with a reward program is easy to do; we’ll help you every step of the way.

Reward Programs are Flexible

With multiple reward/ loyalty program types available, you can be flexible with the type of reward program you choose. We will walk you through pros and cons of each type of program.

Punch Cards

instagram punch card size

You can set up a loyalty program even if you don’t currently use a POS system. Punch cards are an effective loyalty program to begin with. Buy five items and get one free is a common loyalty program that customers are very pleased with.


  • Punch cards are extremely cost effective, and easy for customers to grab and use.
  • You don’t need a POS system to offer a reward program.


  • It can be difficult to prevent fraud, as they could punch the card themselves or find a similar stamp that your store uses.
  • The customers must remember to carry their card to receive the discounts, or remember to pull it out of their purse or wallet to use it.

Points Programs

Reward customers by letting them earn points for their purchases. One point could be $1, and at 70 points they get $5 off their next purchase. Their reward card can be scanned to keep track of points with each purchase. Choose a point base that is effective for your business.


  • These programs are very easy for customers to understand.
  • Customers may acquire tons of points, but might not use them.


  • If the points have an expiration date, customers may forget to use them on time which could cause frustration.


Tiered Programs

Tiered programs are unique because customers earn certain rewards and benefits at each level of the program. The more the customer spends, the faster they will reach the next level, working their way up to the best benefits. You can use a reward card to keep track of how much they’re spending and have their account set up to automatically move levels to gain more benefits.


  • Customers are more likely to stay loyal once they reach the top tier of the loyalty program.
  • This program incentives people to become VIPs of your business.


  • Sometimes customers will be unhappy that they don’t receive the best benefits right away, and they will be discouraged if they must work for them.

reward card-1

Subscription Based Program

Subscription based programs are very different from the other types of programs; as you must pay to join the loyalty program. Some of the benefits could be free shipping, free baggage on a flight, or generally better rates.


  • Your business has a monthly income from customer loyalty.
  • Customers join this program for the benefits, keeping them loyal for long period of time.


  • New customers are way less likely to sign up for this service, as they are new to your brand and business.
  • Some customers may not see the benefits as worth it, therefore they will not join.

Reward Cards

Reward cards are one of the main ways that businesses keep track of how many points or purchases customers made. With a simple scan, it could take them to a new level of benefits, or count how many points they acquire to get a certain percent or monetary value off their next purchase. Reward cards could be attach to a key ring for easy access, or be a VISA© like finish to withhold bending or coffee spills.


Find the right incentives for your customers

If you were a customer at your own business, what type of incentives would encourage and motivate you to continue purchasing products? It’s okay to send a survey out to your loyal customers to grab their opinions. You could also base your new program off your favorite loyalty program you’re already a part of. You just need to make sure it matches your customers’ needs and wants.

Point of Sales system or not, you can still implement a reward program

Having a POS System makes integration easy and streamlined with reward programs, but not having one shouldn’t defer you from having a rewards program. Punch cards can be just as effective, think about how many punch card reward systems you have been a part of. Coffee shops or convenient stores are famous for having successful punch card programs.

Final thoughts;

  1. Research what types of programs make your customers happiest, survey them!
  2. Pick a loyalty program that makes sense for your business.
  3. Connect with your Point of Sale provider to see what types of loyalty programs they are capable of hosting, or be sure to inquire about the types of programs their system can handle before obtaining your first POS System.

We are here to answer any questions you might have, plus, we offer free quotes for all plastic card orders. Let us know how we can help!


Jade Beaver
Marketing Coordinator
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