Joyal

Loyalty

The Merchant Loyalty Playbook

Designing a programme that protects your margins.

Points & marginsReward economicsIndustry-by-industry

👋 Welcome

A great loyalty programme isn't about giving products away. It's about gently managing how much a customer spends before they earn a reward.

This playbook walks you through the simple economics of points, margins and redemptions, so you can build something customers genuinely love coming back for that also stays comfortably profitable. The most reliable starting point is also the simplest, and it's where every programme should begin.

The golden baseline

€1 spent = 1 point earned

One point for every euro. Every worked example in this guide builds from here.

Start here

How to use this guide

Read it start to finish for the why, or skip straight to your trade for a ready-made reward menu. Either way, every reward here comes with a built-in guardrail.

Learn the why

Start with the economics to see how points, margins and the discount rate fit together.

Section 1 · The Economics

Find your trade

Jump to your industry for sample rewards, point values and member deals tuned to your margins.

Section 3 · Your Industry

Keep it safe

Every reward pairs with a guardrail, a simple rule that protects your busy hours and your cash.

Guardrails throughout

1 · The Economics

Retail price vs. what it really costs you

Every reward has a retail price (what you charge) and a production cost (what you pay in ingredients, stock or materials). A coffee that sells for €4.00 might only cost you 60c in beans, milk and a cup.

That gap is what powers your whole programme. When a customer redeems, you don't lose the €4.00, you only lose the 60c it cost to make.

Where a €4.00 coffee reward really lands

60c

€3.40 margin

Your cost to give it awayThe cushion that funds loyalty

High-margin items cost very little to give away, which makes them ideal rewards. Low-margin items cost close to their full retail value, there's no cushion to soften the giveaway.

The Effective Discount Rate

The Effective Discount Rate (EDR) is the true percentage of sales you give up to reward a customer. They see the retail value of what they get; EDR measures the hard cost of the reward against the total they spent to earn it.

Worked example · a free coffee at 40 points

Set the reward. A free coffee costs 40 points, about 10 coffees bought before it's claimed.
The spend target. Because €1 = 1 point, the customer must spend €40.00 to earn it.
The real cost. The coffee retails at €4.00 but costs you just 60c to make.

60cproduction cost€40.00total spend = 1.5%your EDR

To secure €40.00 in sales, you gave up just 1.5% of it in product cost. It also tells you your cost per point: those 40 points bought a reward that cost you 60c, so a single point is worth about 1.5 cents to you. Because every point has a known, tiny cost, your total programme cost becomes easy to predict. Take the number of points customers actually redeem, multiply by that figure, and you have your bill.

Joyal revenue transactions screen showing customer purchases and points earned

Inside Joyal, every euro spent and point earned is tracked in real time.

Turning points into visits

Points are abstract; visits aren't. Before you lock in a milestone, translate it into the number of times a real customer walks through your door, using your average sale. The same 40-point reward feels completely different depending on how much people usually spend.

Reaching the 40-point (€40.00) milestone

visits at €4.00
a daily coffee

visits at €8.00
coffee & a pastry

Aim for a reward that lands in roughly 6 to 10 visits. Much sooner and you're being too generous; much further and customers lose momentum before they get there. The higher your average sale, the richer a reward you can offer for the same number of visits, so set the milestone to the rhythm of your own regulars, not a round number.

Industry EDR targets

Different trades run on different margins, so they can afford different EDR targets. A café living on cheap, high-margin coffee can be generous; a shop paying wholesale for every item has to be tighter. Find your sector below. If your EDR lands above its range, the reward is too generous or the milestone too low, so switch to a higher-margin reward, or raise the points needed.

Typical EDR target by sector

Retail

1.5%

Salons

1.5–2%

Cafés

3–4%

Studios & saunas

4–5%

0%1%2%3%4%5%6%

The breakage buffer

One last thing quietly works in your favour. The formulas above assume every point gets spent, but in practice not all of them do, and the ones that don't are a natural cushion on your costs. This is called breakage.

A rough benchmark for redemption

14-30%
typically redeemed

The rest, a natural buffer on your costs

Industry studies have generally put redemption somewhere between 14% and 30%. Treat that as a benchmark to sense-check against, not a promise, and watch your own numbers as your programme matures. The practical point is simple: across the whole programme, your real-world cost usually sits comfortably below the EDR you calculated. It's a helpful consideration to plan around, rather than something to bank on.

2 · Choosing Rewards

Picking rewards that feel generous

The best rewards feel like a treat to your customer while costing you almost nothing. Others are still worth offering, they just need a rule attached so they never cost you a paying booking. Here's the line.

✓ Great to offer

High-margin physical items, like a filter coffee, a pastry, a side, a soft drink, or basic retail with minimal wholesale cost.
Off-peak or unused capacity, like a quiet afternoon class slot, a spare sauna seat on a Tuesday morning, or weekday appointments where one more person costs almost nothing.
Low-labour add-ons, quick extras that fit an existing booking, like a conditioning mask during a wash or a nail buff during a manicure.

! Offer with care

Core one-to-one labour, like a full haircut or an hour-long massage. Fine to reward, but make it redeemable only outside your busy hours, so you never turn away a paying booking.
High-cost retail stock, like styling tools or premium bottles. Save these for higher point tiers, or pair them with a minimum spend so you don't lose cash on the wholesale cost.
Uncapped cash discounts. Always attach a minimum spend, so a "€5 off" can't pull a small basket below profit.

3 · Your Industry

Built for your business

Knowing the numbers is half the job; the programme also has to fit the day-to-day reality of your trade, whether that's limited appointment times, high upfront stock costs, or quiet hours you would love to fill. Find your category below for target rates, the friction to watch for, and sample rewards you can lift straight into Joyal.

Category 01

Class-Based & Facility Services

PilatesYogaFitness studiosSaunasSpas

High fixed costs like rent, utilities and labour, but the cost of serving one extra person is almost nothing. Once the sauna is hot or the class is running, an unbooked space costs you nothing to fill.

Reward strategy

With margins this high you can afford a generous 4–5% reward rate. Focus on rewards that fill empty slots or bring in friends, a free customer-acquisition tool that costs no cash.

Saunas & Bathhouses

Gross margin

85%

Reward rate

Point value

1pt = €0.05

Friction pointA regular uses points to book a prime 11:00 Saturday slot, taking a cash-paying customer's spot and wasting peak-time capacity.

40pts

Free towel & flip-flop rental

Uses existing commercial stock. Saves the client packing wet towels home, high convenience.

GuardrailNone. Redemption at the desk.

150pts

Bring a mate free to your next public session

Costs €0 and fills an unbooked space. Huge social payoff, driving free word-of-mouth.

GuardrailSubject to class capacity.

300pts

Free 1-hour weekend slot upgrade

Costs €0, based on capacity. A high-status upgrade for loyal customers.

GuardrailWalk-in bookings only, strictly subject to real-time availability.

Exclusive member deal

The Mid-Week Melt

A 1-hour public session for €15 cash (normally €25). Strictly Mon–Wed, 9:00–16:00. Points can't be used to pay for or discount this deal.

Pilates, Yoga & Fitness Studios

Gross margin

80%

Reward rate

Point value

1pt = €0.04

Friction pointMembers hoard points and redeem them for heavily-capped, popular after-work classes (like 18:00 mid-week), locking out paying drop-ins and subscribers.

50pts

Free premium mat & sweat-towel rental

Costs €0 and adds convenience for the member.

GuardrailUnrestricted at the redemption desk.

150pts

One free class pass for a friend

An excellent word-of-mouth and customer-acquisition tool.

GuardrailFriend pass must be booked at least 24 hours in advance.

300pts

One free class added to your next bundle

Rewards consistency without touching class capacity, and nudges the next multi-class bundle.

GuardrailOnly applied to classes not operating a waitlist.

Exclusive member deal

The Quiet Hour Pass

Any off-peak class (weekdays 10:00–16:00) at a flat €10 cash (normally €18). Points can't be used to purchase this deal.

Category 02

High-Volume Food & Drink

CafésCoffee shopsRestaurantsTakeawaysCasual dining

Hospitality margins are hit hard by food inflation. Give away high-cost items like mains and bottles of alcohol and you're flushing away cash.

Reward strategy

Keep your reward rate at 2.5–4%, but stick strictly to high-margin items like coffees and soft drinks. A €4.20 flat white only costs about €0.55 in milk and beans.

Cafés & Coffee Shops

Gross margin

75%

Reward rate

Point value

1pt = €0.04

Friction pointMorning commuters use points to get their primary coffee free, buying nothing else, at the busiest point of the day.

15pts

Free extra shot, syrup or alternative milk

Under 10c in materials. A fast, low-barrier win that lets customers customise their order.

GuardrailLimited to 2 modifications per drink transaction.

40pts

Free regular hot drink

Low cost to fulfil, high perceived value for the customer.

GuardrailOne free point-redeemed hot drink per transaction.

70pts

Free pastry, scone or sausage roll

Low wholesale cost. High perceived value nudges customers to bump their spend to hit a milestone.

GuardrailSubject to availability. Not available for pre-order.

Exclusive member deal

The Afternoon Slump

Any hot drink & pastry combo for €5 cash (normally €8.50). Strictly 15:00–17:00, Mon–Wed. Cash/card only; points can't be used.

Restaurants & Quick Service

Gross margin

60%

Reward rate

2.5%

Point value

1pt = €0.025

Friction pointDiners come in on a packed Saturday night, hold a table for two hours, and pay the whole bill with points or heavy meal-deal discounts, killing the night's cash flow.

25pts

Free canned soft drink

High-margin, universally stocked, with a predictable wholesale cost.

GuardrailRedeemable only when purchasing a full-priced main.

50pts

Free garlic bread or onion rings

High-margin starters that cost little to prep.

GuardrailRedeemable only when purchasing a full-priced main.

80pts

Free dessert

Low prep and ingredient cost. High emotional satisfaction.

GuardrailValid for dine-in only.

Exclusive member deal

Mid-Week Meals

Two mains and a shared starter for €30 cash (normally €45). Dine-in only, Sun–Wed. No points can be applied.

Category 03

Time-Constrained Services

BarbersHairdressersNail techsBeauticiansDog groomers

Time is money, a staff member can only see one client at a time. Giving away a core service, like a full haircut or a full set of nails, blocks a profitable slot for zero revenue.

Reward strategy

Keep the rate tight at 1.5–2%. Never give away core billable time. Rewards must be quick, low-labour add-ons done inside the booked slot, or take-home products where you only lose the wholesale cost.

Barbers

Gross margin

50%

Reward rate

Point value

1pt = €0.02

Friction pointClients spring point-redeemed beard trims or add-ons at the start of a standard cut without booking the extra time, running the chair late all day.

50pts

Hot-towel steam treatment & neck shave

Low cost to fulfil, high emotional payoff. Elevates a basic cut into a premium experience.

GuardrailMust be requested at the beginning of treatment.

120pts

Hair wash & scalp massage added to your cut

High satisfaction and only adds minutes to the appointment.

GuardrailMust be flagged at time of booking.

250pts

Free beard trim & line-up with your haircut

Costs €0, doesn't block a new slot, takes 5 minutes. High emotional payoff.

GuardrailMust be flagged at time of booking.

Exclusive member deal

The Quiet Chair

Haircut & beard-trim combo for €25 cash (normally €38). Strictly Mondays and Tuesdays. Points can't pay for or discount this deal.

Hairdressers & Salons

Gross margin

45%

Reward rate

Point value

1pt = €0.02

Friction pointClients try to redeem points for major standalone services during peak weekend hours, blocking premium slots that would net high-ticket colour and cut bookings.

100pts

Olaplex / K18 bonding treatment upgrade

About €3 per dose. High emotional payoff, high perceived value, massive brand pull.

GuardrailMust be specified at time of booking.

200pts

Scalp scrub & professional blow-dry

Low cost, huge payoff, clients leave with a professional finish, highly satisfied.

GuardrailMust be booked alongside a full colour or cut. Not a standalone free visit.

350pts

Glass-hair shine gloss or toner refresh

Extends the client's colour, huge emotional payoff, and encourages other treatments.

GuardrailMust be specified at time of booking.

Exclusive member deal

The Quick Refresh

A standard wash & blow-dry for €25 cash (normally €40). Tuesday and Wednesday only. Promotional cash rate; points can't be redeemed.

Nail Techs

Gross margin

55%

Reward rate

Point value

1pt = €0.02

Friction pointA client books a basic 45-minute gel manicure but asks to cash in points for intricate accent art on the spot, running the tech late for the afternoon.

100pts

Chrome, cat-eye or glazed top-coat finish

Low cost, quick to add, a massive aesthetic upgrade.

GuardrailMust be specified at time of booking.

180pts

BIAB strength-overlay upgrade

Low cost and highly practical, adds strength and durability to protect the nails.

GuardrailMust be specified at time of booking.

300pts

Express dry-pedicure add-on (toes to match hands)

High satisfaction and huge perceived value.

GuardrailMust be booked alongside a full-priced hand service. Not a standalone appointment.

Exclusive member deal

Tuesday Mani Perk

Add an express dry-pedicure to any gel manicure for €15 cash (normally €30). Strictly Tuesday mornings. Points can't be used.

Beauticians (Brows, Waxing & Lashes)

Gross margin

55%

Reward rate

Point value

1pt = €0.02

Friction pointCustomers try to apply a €15 voucher to a low-value standalone treatment (like a quick lip wax), dropping the transaction below break-even.

80pts

Hydrating under-eye gel patches during treatment

Low cost and easy to fulfil.

GuardrailRedeemed as an add-on during an existing appointment.

150pts

Upper-lip or chin wax add-on

Low cost, small time add-on. Practical and convenient for the client.

GuardrailCannot be booked as a standalone appointment.

250pts

Brow tint or lash tint added to a brow shape

Low cost, small time add-on. Huge payoff thanks to the visible transformation.

GuardrailValid only alongside full-priced brow-shaping or lash services.

Exclusive member deal

Mid-Week Brow Combo

Brow shape & tint combo for €15 cash (normally €25). Strictly Thursdays, 10:00–14:00. Points can't pay for or discount this deal.

Dog Groomers

Gross margin

50%

Reward rate

Point value

1pt = €0.02

Friction pointOwners try to redeem add-ons (nail clips, ear cleans) as standalone, zero-revenue visits, taking table time without booking a full groom.

80pts

Professional nail clipping & filing

€0 in stock, takes 5 minutes, and a massive relief for dog owners.

GuardrailRedeemed alongside a full groom. Not a standalone service.

150pts

Deep ear cleaning & hygiene eye flush

Low cost, low effort, huge payoff thanks to the practical health benefit.

GuardrailRedeemed alongside a full groom. Not a standalone service.

250pts

Free top-up, sanitary trim, eye-fringe trim & cologne

Minutes of quick scissor work between full grooms. The dog looks fresher and stays cleaner.

GuardrailLimited to 10 minutes of active table service, no baths or blow-drying.

Exclusive member deal

The Monday Muddy Pup

Full bath, blow-dry & nail clip for €30 cash (normally €45–50). Mondays only. Points can't be applied to this package.

Category 04

Inventory-Heavy Retail

BoutiquesFashionGift shopsHomeware

Every item on the shelf is hard cash you paid a wholesaler upfront. Giving away product means losing that exact cash investment.

Reward strategy

Keep your rate at 1.5% and mimic the classic Spend & Save model. Never offer straight cash discounts across the board, force a minimum spend to protect your margin.

Boutique Retail Shops

Gross margin

45%

Reward rate

1.5%

Point value

1pt = €0.015

Friction pointShoppers apply saved vouchers during end-of-season sales, stacking point discounts on top of already heavily marked-down stock.

100pts

High-quality branded canvas tote bag

Low cost, highly practical, customers use it for daily shopping, and it doubles as a marketing tool.

GuardrailOne gift per transactional visit.

200pts

€10 voucher, valid when you spend €50

An excellent spend-and-save driver, a solid discount that protects you by lifting basket size.

GuardrailFull-priced merchandise only; not on sale or clearance stock.

400pts

€25 discount when you spend over €100

A high-value VIP incentive that clears stock on healthy margins.

GuardrailFull-priced merchandise only; not on sale or clearance stock.

Exclusive member deal

VIP Collection Launch

Entry to our private autumn launch night, plus €15 cash off any purchase over €50 that evening. Exclusive promotional deal; points can't be used to offset or discount it.

Joyal

Reward loyalty, protect your margins.

You now have the numbers, the guardrails and a ready-made reward menu for your trade. Build your programme with care, keep an eye on what your customers respond to, and you'll have something that brings people back again and again, all while staying comfortably profitable.

Joyal Loyalty · Merchant Playbook