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%

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 studiosSaunasPlunge pools

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 5% reward rate. Focus on rewards that fill empty slots or bring in friends, a free customer-acquisition tool that costs no cash.

Saunas & Plunge Pools

Gross margin

75%

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 Tea or Coffee

Low cost and quick to fulfil; a practical item for the customer with a high emotional payoff.

GuardrailOnly available when booking a sauna session.

100pts

Bring a Mate for Free (Public Session)

No additional cost to fulfil; fills an empty slot and acts as a powerful tool for customer acquisition.

GuardrailSubject to capacity; must be booked at least 24 hours in advance.

150pts

One Free Public Session

A high-value milestone designed to encourage long-term retention; costs nothing to fulfil with a massive emotional payoff.

GuardrailStrictly valid Monday to Thursday only. Excludes weekends and Bank Holidays.

In-app 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

70%

Reward rate

Point value

1pt = €0.05

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.

60pts

Free Pair of Grip Socks

Low wholesale cost and quick to fulfil; a practical item for the customer with a high emotional payoff.

GuardrailLimit of one pair per member.

120pts

1 Free Class Pass for a Friend

No additional cost to fulfil; fills an empty slot and acts as a powerful tool for customer acquisition.

GuardrailFriend must be a first-time visitor.

200pts

One Free Class Added to Your Account

A high-value milestone designed to encourage long-term retention; costs nothing to fulfil with a massive emotional payoff.

GuardrailFree redemptions can only be applied to classes not operating on a waitlist.

In-app 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 shopsRestaurantsCasual diningQSR

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 3–4%, 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 & Speciality 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 Alternative Milk or Extra Shot

Low cost and quick to fulfil; a fast, low-barrier win to get customers engaging with the app.

GuardrailLimit of one modification per drink transaction.

40pts

Free Regular Hot Beverage

Low cost and quick to fulfil; encourages regular spending habits by rewarding daily consistency.

GuardrailLimit of one point-redeemed hot beverage per transaction.

60pts

Free Pastry, Scone or Treat

Low wholesale cost and quick to fulfil; encourages customers to bump up their spend to hit a quick milestone.

GuardrailSubject to daily countertop display availability.

In-app 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 & Casual Dining / QSR

Gross margin

60%

Reward rate

Point value

1pt = €0.03

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.

30pts

Free Soft Drink or Craft Beer Pint Upgrade

A high-margin upgrade with a low wholesale cost; quick to fulfil with a high emotional payoff.

GuardrailOnly valid when purchasing a full-priced main course.

60pts

Free Starter (Wings, Fries or Garlic Bread)

A high-margin item with a low cost to prepare; quick to fulfil with a high emotional payoff.

GuardrailOnly valid when purchasing a full-priced main course.

150pts

€15 Off Your Bill

An excellent spend-and-save driver; a massive emotional payoff while pushing up overall spend.

GuardrailMust spend a minimum of €25 to avail. Valid Sunday through Thursday only.

In-app 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

BarbersSalonsBeauticiansNail techsDog 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.

Barbershops

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.

40pts

Free Scalp Massage & Hot Towel Upgrade

Low product cost and quick to fulfil; easily turns a standard service into a premium experience with a high emotional payoff.

GuardrailMust be requested at the beginning of the treatment.

100pts

Free Premium Styling Product (Clay, Wax or Pomade)

A predictable wholesale cost that can clear dead stock; highly motivating with a great retail emotional payoff.

GuardrailFrom selected retail range only; subject to availability.

200pts

Free Standard Dry Haircut

A high-value milestone designed to encourage long-term retention; a massive emotional payoff for dedicated customers.

GuardrailStrictly valid Tuesday and Wednesday only. Cannot be redeemed on peak Thursdays, Fridays or Saturdays.

In-app 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.

Hair Salons & Colour Specialists

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

Premium Bonding Treatment Upgrade (Olaplex/K18)

Low material cost and quick to fulfil; a practical add-on with high perceived value and a high emotional payoff.

GuardrailMust be specified at the time of booking.

200pts

Free Toner & Metal Detox Treatment

Low cost and quick to fulfil; a physical refresh that encourages customers to return between main appointments.

GuardrailMust be booked alongside a full-priced primary styling service.

300pts

Free Wash & Blow-Dry with any paid Cut or Colour

Strongly encourages a high-ticket service booking to redeem; a massive emotional payoff through a complete visual transformation.

GuardrailValid Tuesday to Thursday only. Excludes the month of December.

In-app 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.

Beauticians

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.

60pts

Free Eyelash or Brow Tint Upgrade

Low material cost and no extra time required; an immediate visual upgrade with a high emotional payoff.

GuardrailOnly valid when booked alongside a primary, full-priced brow-shaping or waxing service.

120pts

Free Upper-Lip or Chin Wax Add-on

Low cost and quick to fulfil; a highly practical maintenance touch to an existing appointment for an easy win.

GuardrailCannot be booked as a standalone appointment; must be paired with a main service.

250pts

Free Full Brow Shape & Tint Session

A high-value milestone designed to encourage long-term retention; rewards regular consistency with a massive emotional payoff.

GuardrailCannot be booked as a standalone appointment; must be paired with another paid treatment.

In-app 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.

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.

60pts

Free Speciality Top Coat (Chrome, Glaze or Cat-Eye)

Low material cost and quick to fulfil; an immediate visual upgrade with a fast emotional payoff.

GuardrailMust be specified at the time of booking alongside a full manicure.

90pts

Free French Tip Design Upgrade

Low cost and quick to fulfil; an easily attainable milestone that drives consistent bookings.

GuardrailMust be notified at time of booking to allow for schedule timing.

250pts

Free Express Toes Pedicure

A highly motivating milestone that introduces customers to a secondary service to increase overall spend and retention.

GuardrailOnly valid when booked alongside a primary, full-priced hand service (Gel or BIAB).

In-app 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.

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.

50pts

Free Ear Clean & Eye Tidy Add-on

An achievable milestone that's quick to fulfil with no product cost; highly practical for the customer.

GuardrailMust be redeemed alongside a basic Bath & Blow-Dry service (excludes Full Grooms).

100pts

Free Professional Nail Clipping & Filing

Very low fulfilment cost and quick to perform; handles a practical chore that customers hate doing themselves.

GuardrailWalk-in only, strictly subject to real-time availability. Cannot be booked as a scheduled appointment.

150pts

Free Between-Groom Quick Face & Fringe Trim

Quick to fulfil with high perceived value; encourages long-term retention with a great visual emotional payoff.

GuardrailStrictly valid mid-week only (Monday to Wednesday). Must be booked in advance.

In-app 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

Dog Daycare & Boarding Kennels

DaycareBoardingKennelsDog walking

Boarding and daycare carry high fixed costs, staff, insurance and space, but once the doors are open, one more happy dog barely adds to the bill. Your quiet weekday slots and small convenience touches are where the value is.

Reward strategy

With margins this healthy you can afford a generous 5% reward rate. Lean on rewards that fill quiet weekday slots or solve a genuine convenience headache for busy owners; both cost you almost nothing while building serious loyalty.

Dog Daycare & Boarding

Gross margin

65%

Reward rate

Point value

1pt = €0.05

Friction pointOwners try to redeem free days during peak holiday weeks, like summer and Christmas, when every kennel is already booked out at full price.

60pts

Free Quick Coat Brush & Scent Spray

Low cost and quick to fulfil; a practical touch for the customer with an easy emotional payoff.

GuardrailMust be requested at least 2 hours prior to collection, to avoid last-minute delays during peak pick-up.

100pts

Complimentary Early Drop-Off or Late Collection

A high emotional payoff that solves a practical convenience headache without adding any operational overhead.

GuardrailRequires 24-hour advance notice via the app to ensure staff cover.

200pts

One Free Full Day of Daycare or Free Overnight Stay

A high-value milestone designed to encourage long-term retention; costs nothing to fulfil with a massive emotional payoff.

GuardrailStrictly excluded during peak holiday windows (June to August, Christmas and Easter). Valid Tuesday to Thursday nights only.

In-app deal

The Midweek Wag

A full day of daycare for €20 cash (normally €28). Strictly Monday to Thursday. Points can't be used to pay for or discount this deal.

Category 05

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.

50pts

Free Heavyweight Canvas Shopper Tote

Low wholesale cost that encourages shoppers to hit a quick milestone; doubles as a marketing tool.

GuardrailLimit of one per transaction.

150pts

€10 Voucher (Spend & Save)

Drives steady sales volume while structurally guaranteeing a profitable minimum basket size.

GuardrailValid only when spending €50 or more on full-priced items. Excludes sale stock.

300pts

€25 Voucher (Spend & Save)

A high-value milestone designed to clear seasonal inventory, push up basket sizes and deliver a massive emotional payoff.

GuardrailValid only when spending €100 or more on full-priced items. Excludes sale stock.

In-app 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