There are eight mechanics a loyalty card can run on. Most businesses default to stamps because they're familiar. In about a third of cases, a different mechanic would fit the business better.
Stamp cards
The default. Buy ten, get one free. Works for any business with a high-frequency, low-variance transaction — coffee, lunch, a haircut. Does not work for variable-ticket businesses like restaurants with a wide menu.
Points cards
Earn a point per dollar spent; redeem at a threshold. The right choice for any business where the ticket size varies by more than 2x. Restaurants, boutiques, spas.
Tier cards
Silver, Gold, Platinum. The right choice for businesses with a meaningful gap in value between customer segments — a gym with a VIP class list, a boutique with first-look inventory.
Subscription cards
A monthly fee unlocks benefits. The right choice when the business has high fixed costs and wants predictable revenue — a coffee shop's morning latte club, a yoga studio's unlimited pass.
