Definition
Redemption
Redemption is the moment a customer receives the reward their loyalty card has earned. It is also the point at which the balance is spent — a card is not cleared by reaching its target, but by staff handing the reward over.
Filling a card and spending it are different events
A card that reaches ten of ten has earned a reward; it has not used it. Keeping those separate is what lets a customer carry on buying while they wait for a convenient moment to claim, and it puts the business in control of when the giveaway happens. It also means a card sitting at eleven of ten is normal, not a bug — and redeeming it should leave one stamp on the next card, because that eleventh coffee was paid for.
Why staff should hold the button
If a customer can redeem from their own phone, a screenshot is a free coffee and a shared image is several. When redemption is an action a staff member takes at the counter as they hand something over, the reward and the record move at the same moment, and there is nothing to forge.
Redemption rate, and what it tells you
The share of earned rewards that actually get claimed. A very low rate means your reward is not worth the trouble or customers have forgotten they have it; a rate near a hundred percent with heavy uptake means you should check what the programme is costing you. Neither number is good or bad on its own — it is a prompt to look.
Questions
- What happens to extra stamps collected after a card is full?
- They should carry over. Redeeming a card sitting at eleven of ten leaves one stamp toward the next reward — taking it away would be removing something the customer paid for.
- Can rewards be restricted to quieter times?
- Where redemption is staff-controlled, yes — a rule such as "not during the Saturday rush" is enforceable at the counter. Say so in the card terms so nobody is surprised.
Related terms
Stamp
A stamp is a single credit on a loyalty card. Staff add one when a customer makes a qualifying purchase, and collecting the required number — often ten — earns the reward.
Reward
A loyalty reward is what a customer receives for completing a card. It is usually a free version of the business’s main product, though upgrades, add-ons and access-based perks often feel just as generous while costing considerably less.
Loyalty program
A loyalty program is an arrangement that rewards customers for coming back. In hospitality it usually takes one of two forms: stamps counted per visit toward a free item, or points accrued against how much is spent.
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