How to Set Up a Coffee Shop Loyalty Program in 7 Simple Steps

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How to Set Up a Coffee Shop Loyalty Program in 7 Simple Steps

February 05, 2025

In the past year alone, coffee shop loyalty programs have grown stronger — and more influential — than ever before.

The 2024 Bond Loyalty Report stated that loyalty program activity was higher last year than in the past decade, with the average consumer having nine active loyalty memberships at any given time.

And, while active participation is nice… that’s not even the best part of starting a loyalty program.

Active loyalty program members are some of your coffee shop’s greatest allies and advocates, with 79% of consumers saying they’re “more likely to recommend brands with good loyalty programs.” Plus, 85% of consumers say loyalty programs make them “more likely to continue doing business” with a specific brand — including spending more than they would otherwise.

But if none of those benefits convinced you that a coffee shop loyalty program is a good idea…

We’ll also tell you how to set one up in seven simple steps, no guesswork needed.

(Not a bad deal, right?)

So, without further ado — here’s how to set up a coffee shop loyalty program.

Step 1 — Define Your Goals For Your Coffee Shop’s Loyalty Program

Before you can start planning the details of your coffee shop’s shiny, new loyalty program, you need to look at the bigger picture of why you’re starting a loyalty program in the first place — and what you hope to get out of it.

What do you want your loyalty program to “do” for your coffee shop?

Do you want it to boost visit frequency? Increase your guests’s average order value? Build brand awareness and advocacy?

Figure out your coffee shop’s goals first — then build the rest of your loyalty program around it.

Reward your best customers with a loyalty program hosted on your very own, custom-branded Craver mobile app.

Step 2 — Choose What Type of Loyalty Program You Want for Your Coffee Shop

Now that you know why you want (or need) a loyalty program, it’s time to figure out what type of loyalty program is best suited to help you achieve those goals.

Here are a few of the most popular coffee shop loyalty program types, their pros and cons, and what each can help your business achieve.

1. Punch Card System

A physical card where the guest receives a hole punch, stamp, or sticker for each visit. Once the guest’s card reflects a certain number of visits, the next item is free.

Example: “Buy 9 coffees, get the 10th free!”

Pros: Simple, easy to implement, easy to understand

Cons: A little outdated, not as “exciting” as other loyalty programs, physical cards are easily lost/stolen

What it's best for: Encouraging repeat visits from new guests or boosting the frequency of visits from existing guests

Coffee shop loyalty punch card design

2. Points-Based System

A typically digital system where guests earn points per purchase or visit. When a certain number of points are accumulated, they can be exchanged for free items.

Example: “Earn 5 points per dollar spent. Redeem 100 points for a free coffee!”

Pros: Simple to understand, allows everybody to earn rewards (regardless of $ value), usually digital

Cons: Can take longer for guests to earn rewards

What it's best for: Encouraging repeat visits from new guests or boosting the frequency of visits from existing guests

Craver Loyalty Programs with Clear Rewards

3. Tiered System

Similar to a points-based system with the caveat that the rewards improve as customers spend more.

Example: “Spend $100 a month to earn Silver Status, doubling your points per dollar!”

Pros: Encourages more spending, exciting to reach new levels, usually digital

Cons: Required spend can sometimes be inaccessible

What it's best for: Encouraging a higher average order value or boosting the frequency of visits from guests

4. Subscriptions

Guests pay a set fee (usually monthly) in exchange for unlimited (or discounted) products.

Example: “For just $15 a month, you can enjoy unlimited coffee and tea!”

Pros: Cost savings for guests, builds a sense of community, usually digital

Cons: Price can sometimes be inaccessible

What it's best for: Adding a predictable revenue stream to your coffee shop

Step 3 — Select the Right Loyalty Program System For Your Coffee Shop

Depending on the type of loyalty program you decide on, the system you’ll need to implement will fall into one of two categories — physical or digital.

The punch card model is the only truly physical option; all you’ll need to get that program off the ground is a card and a hole punch.

The other three models are all digital, and your coffee shop will need a certain level of tech infrastructure — like a POS system and/or a Craver mobile app — to make it happen.

Giving your customers the loyalty program they deserve starts with a custom-branded Craver app.

Step 4 — Decide on Your Coffee Shop Loyalty Program’s Rewards/Incentives

With the “digital vs. physical” decision made, it’s time to move on to the fun stuff: deciding on your coffee shop loyalty program’s rewards and incentives.

The nice thing about this step is that there is no “right” or “wrong” way to pick rewards —- the world is your loyalty oyster, here.

You can offer monetary rewards like free coffee and exclusive discounts.

You can offer non-monetary rewards like priority service or exclusive event invitations.

You can offer a combination of both, or even something completely innovative and new.

But, regardless of the rewards path you’re leaning toward, we always recommend checking out what other people are doing before deciding 100%.

Look at other “best of the best” coffee shop rewards programs, explore highly successful loyalty programs outside the coffee industry, and don’t be afraid to mix and match strategies.

Step 5 — Establish Rules for Participating In Your Coffee Shop’s Loyalty Program

So, you’ve got your loyalty program system in place and know exactly what rewards and incentives you’re offering your coffee shop guests.

Now you need to make sure your guests know exactly what rewards and incentives they’re being offered and how to earn them.

Whether your loyalty program is physical or digital, your customers need to know exactly what they can expect from participating in your coffee shop’s loyalty program — and that’s where clearly established rules and guidelines come into play.

How to earn and redeem points with a Craver loyalty program

Here are a few tips for developing the specifications of your coffee shop’s loyalty program.

Keep the rules simple and easy to understand.
- e.g. “Earn 1 point per $1 spent.”
Clearly define what it takes to earn and redeem rewards.
- e.g. “Redeem 50 points for a free drink (coffee or tea only.)”
Anticipate questions and answer them before they’re asked.
- e.g. “Free ‘coffee’ refers to drip coffee, lattes, and cappuccinos only.”
Keep the time between earning and redeeming points reasonable (and not demotivating)
- i.e. If your guests earn 1 point per $1 spent, make their first reward available at 25 points — not 100.

Step 6 — Promote Your Coffee Shop’s Loyalty Program

Congratulations!

By the time you’ve reached Step 6, your coffee shop loyalty program has launched and is ready to promote (or is launching soon and ready to generate excitement about).

There are tons of different ways to promote your coffee shop’s loyalty program, but we always recommend the following few tried-and-true methods.

Train your staff to encourage in-person customers to sign up
Offer an incentive for signing up (e.g. “Join today and get a free coffee!)”
Post on your coffee shop’s social media platforms (and encourage people to share!)
Create posters and signage to hang up in your coffee shop or around your neighborhood

(And if you work with Craver, we’ll even do that last one for you.)

Step 7 — Track (and Optimize) Your Coffee Shop Loyalty Program’s Performance

The last step to setting up your coffee shop’s loyalty program comes after it’s already set up because it’s all about real-time data.

Once your loyalty program is up and running — and people are using it — you’ll start generating invaluable data about your customers and the program itself. Merchants who work with Craver, for example, gain access to a portal with customer reports, highlighting valuable loyalty-focused data like which offers generated the most revenue or encouraged a second visit shortly after.

Tracking this data is the best way to ensure your coffee shop loyalty program is serving your customers (and benefiting your business) the best it can, and, depending on what that data tells you, it can also inform changes that you might need or want to make.