Loyalty programme guides

Running one loyalty programme across multiple locations

A business with multiple locations should run one card that earns and redeems at every site, because a card that only works where it was issued is worth less to the customer than a paper one. The difficulties are internal accounting and franchise agreements, not the customer-facing mechanic.

The moment a business opens a second site, its loyalty programme acquires a question that a single shop never has to answer: does the card work at both? The customer-facing answer is almost always yes, and the reason most multi-site programmes get it wrong is internal rather than technical.

Should one card work across all locations?

Yes, in nearly every case. A customer who fills a card at one branch and is told it cannot be redeemed at another has been given a worse experience than a paper punch card would have provided, and the damage to trust exceeds anything the restriction saves.

There is one real exception: sites with materially different pricing and no shared ownership, such as an airport location trading at twice the high-street price. Even there, the cleaner solution is usually to let the card work everywhere and settle the difference internally.

Who pays when a reward is redeemed at a different branch?

Whoever owns the sites decides, and the decision needs to be made before launch rather than after the first dispute. For a single-owner group it is a bookkeeping entry; for franchised sites it is a commercial term that belongs in writing.

StructureUsual settlementNote
Single owner, several sitesCost falls where redeemedSimplest; evens out over a year
Single owner, site-level P&LCentral pool funds rewardsKeeps site managers neutral on redemption
FranchisedWritten into the franchise agreementMust be agreed before launch
Mixed owned and franchisedCentral pool, franchisee contributionThe arrangement most likely to cause friction

The failure mode to avoid is a site manager with an incentive to discourage redemption. If rewards hit one site's numbers and the enrolment credit goes to another, staff will quietly stop honouring cards, and the programme will look like a software problem when it is an accounting one.

Should each location have its own card design?

One design with the branch recorded against the customer. A separate design per site fragments the customer record, doubles the work of every change, and creates the impression that the group is several unrelated shops.

Recording which branch enrolled a customer still matters, and is worth doing from day one. It is the only way to compare enrolment rates between sites, which is the fastest way to find out that one manager has stopped offering the card.

What should a multi-site business measure that a single shop should not?

Enrolment rate per site, compared. Across several locations with similar trade, a gap in enrolment rate is almost never about customers: it is about whether that site's staff are still asking.

  • Enrolment rate by site, weekly. A site at 4 per cent while its neighbours run at 18 has stopped offering the card.
  • Cross-site redemption share. A high figure means the single card is valued; near zero suggests customers think it does not work elsewhere.
  • Lapsed customers by enrolling site, which separates a site-specific problem from a group-wide one.
  • Reward completion rate by site, which catches a branch quietly refusing redemptions.

Comparison is the whole advantage of operating several sites. A single shop measuring 12 per cent enrolment has no idea whether that is good; five shops measuring 18, 17, 19, 16 and 4 per cent know exactly where to go on Monday.

How does this work with franchisees?

It works when the loyalty terms are in the franchise agreement and fails when they are not. A franchisee who did not agree to fund rewards earned at another site has a legitimate grievance, and no amount of software resolves it.

Three points are worth settling in writing before launch: who funds a redemption, who owns the customer data, and whether a franchisee may run their own separate promotions through the shared card. The third is the one most often forgotten and the most disruptive when it surfaces.

Who owns the customer data across several sites?

Under the GDPR the controller is whoever decides how the data is used, and in a multi-site group that should be one named legal entity rather than each site separately. A customer enrolling at one branch is entitled to a single clear answer about who holds their data.

This has a practical consequence for the privacy notice given at enrolment: it must name the controlling entity and state that the data is shared across the group's locations. Where sites are separately owned, the arrangement is a joint controllership and needs a written agreement between them, which is a legal question for a lawyer rather than for a loyalty platform.

What does a multi-site rollout look like in practice?

Launch at one site, fix the flow there, then roll out with the script rather than with the software. The sites that fail are the ones where the programme arrived as a memo.

  1. Pick the busiest site and run the programme there alone for a month.
  2. Settle the reward funding and the data controllership in writing while that month runs.
  3. Write the one-sentence staff script that worked at the first site, verbatim.
  4. Roll out to the remaining sites with that sentence, not with a document.
  5. Compare enrolment rate by site weekly for the first two months, and visit whichever site is lowest.

Loonine's plans are sized by the number of enrolled customers rather than by transaction volume or till count, so what a second location adds to the bill is the customers it enrols. The current plans and their caps are on the pricing page.

Should each site be allowed its own promotions?

One programme, and promotions that are explicitly local and time-bounded. A site running a permanent variation has in effect started a second programme, and customers who use two of your branches will notice within a fortnight.

The workable rule is that the earning mechanic is group-wide and never changes locally, while a one-off offer announced through the card can be site-specific because it carries its own explanation each time. That keeps the base scheme legible without freezing individual managers out of their own quiet Tuesday.

How do you launch at a site that does not want it?

Find out why before pushing, because a reluctant manager is usually reacting to something real: a queue that cannot absorb another step, a till that is already slow, or an earlier scheme that was launched and abandoned. A site that resists for a reason will quietly not offer the card, and enrolment rate will show it within a month.

The argument that lands with a site manager is not the group's retention figure but their own lapsed list: a set of named regulars who stopped coming to their branch. That is a problem they recognise, and the card is what produces the list.

What happens when a location closes?

The customers enrolled there keep their cards and their progress, and they are the most valuable list you have during a closure because they can be pointed at the nearest remaining site. Decide this before it happens rather than during it.

One message to the customers of a closing branch, naming the next nearest location and confirming their card still works there, recovers a share of trade that is otherwise simply lost. Without a shared card there is no list to send it to, which is a quieter argument for the single-card decision than any of the ones above.