How to Start a Coffee Shop Loyalty Program
A comprehensive guide to creating a loyalty program that turns one-time visitors into lifelong regulars. Learn what works at Starbucks and how to implement it at your cafe—on an indie budget.
In This Guide
Why Your Cafe Needs a Loyalty Program
If you run an independent coffee shop, you've probably noticed: some customers come once and never return, while others become regulars who visit multiple times a week. The difference? Often, it's whether they feel connected to your brand.
A loyalty program isn't just about free drinks. It's about creating a reason to come back. It's about making customers feel valued. And increasingly, it's about competing with chains like Starbucks who have set the expectation that every cafe has an app.
5x
cheaper to retain than acquire
Acquiring a new customer costs 5x more than keeping one.
67%
more spent by repeat customers
Loyal customers spend 67% more than first-time buyers.
80%
of future profits from 20% of customers
Your most loyal 20% drive 80% of your business.
The Bottom Line
Coffee shops with loyalty programs see an average 27% increase in visit frequency and a 20% boost in average order value. That's the difference between surviving and thriving.
Types of Loyalty Programs
Choose the type that fits your cafe's personality and customer base. Many successful programs combine elements from multiple types.
Points-Based
Earn points per dollar spent (e.g., 1 point = $1)
Pros
- Simple to understand
- Encourages higher spend
- Flexible rewards
Cons
- • Can feel impersonal
- • Points may expire
Visit-Based (Punch Card)
Earn stamps per visit, get reward after X visits
Pros
- Easy to track
- Drives frequency
- Nostalgic feel
Cons
- • Doesn't reward higher spend
- • Fraud risk with physical cards
Tiered
Unlock better perks as you reach higher levels
Pros
- Gamification
- VIP feeling
- Aspirational
Cons
- • More complex
- • Requires clear communication
Value-Based
Rewards tied to shared values (sustainability, community)
Pros
- Emotional connection
- Differentiation
- PR value
Cons
- • Harder to quantify
- • Niche appeal
Step-by-Step Setup Guide
Define Your Goals
Are you trying to increase visit frequency? Boost average order value? Collect customer data? Your goals will shape your program structure.
Choose Your Program Type
Based on your goals and customer base, select a points-based, visit-based, tiered, or hybrid program. Most coffee shops do well with points or visits.
Design Your Rewards
Make rewards achievable but valuable. A free drink after 10 purchases is a sweet spot. Add surprise rewards to delight customers.
Select Your Platform
Choose between physical punch cards (simple but limited), generic apps, or a custom branded solution like GoTasty that integrates with your ordering system.
Train Your Team
Your staff should understand and promote the program. They're your best salespeople for getting customers to sign up.
Launch and Promote
Announce on social media, put up signage, and have staff mention it at checkout. Offer bonus points for signing up to drive initial adoption.
Analyze and Iterate
Track redemption rates, signup rates, and revenue impact. Adjust rewards and promotions based on what works.
Best Practices for Success
Make Sign-Up Frictionless
Allow sign-up with just a phone number. No forms, no friction. Every barrier loses customers.
Give Instant Gratification
Offer welcome points or a first-visit reward. Immediate value drives engagement.
Communicate Regularly
Send point balance updates, reward reminders, and birthday offers. Out of sight is out of mind.
Personalize When Possible
Use purchase history to make relevant offers. "We noticed you love oat milk lattes..."
Reward Social Sharing
Give points for Instagram tags or check-ins. Turn customers into marketers.
Create a Referral Program
Reward both referrer and referee. Word-of-mouth is your most valuable marketing channel.
Getting Starbucks Tech on an Indie Budget
Starbucks Rewards is often cited as the gold standard of coffee shop loyalty programs. They have mobile ordering, personalized offers, a tiered system, gamification, and seamless integration with their app. Many independent cafe owners look at this and think: "I could never afford that."
But here's the secret: you can get most of these features today.
What Starbucks Has vs. What You Can Have
The bottom line: You don't need a $100M budget to compete with Starbucks on technology. Platforms like GoTasty give independent cafes the same capabilities—mobile ordering, loyalty, automation—for a fraction of the cost.
Ready to Launch Your Loyalty Program?
GoTasty includes a fully automated loyalty program with your branded mobile app. Points, rewards, birthday perks, referrals, and even social media loyalty—all built in.