Canvas

Loyalty Program Design Canvas (value-based)

One-page interactive canvas to design value-aligned loyalty programs that drive profitable repeat visits. Capture target guests, desired behaviors, reward mechanics, cost and breakage assumptions, estimated incremental margin, operational impacts, and a pilot checklist — then save the plan for later refinement or sharing.

Interactive Tool

Loyalty Program Design Canvas (value-based)

Use this one-page interactive canvas to design a loyalty program that rewards behaviors you want more of — not just discounts. Work through each section, capture assumptions, and use the simple pilot checklist to test before a full roll‑out. Helpful examples appear in the help text for many fields.

Describe 1–3 guest segments you want to engage (e.g., neighborhood regulars, office lunchers, delivery customers, families). Include size, frequency, and why they matter.
Be specific: increase visit frequency, raise average check, shift to higher-margin items, order delivery vs dine-in, refer friends, prepay gift cards, book catering, etc. Link each behavior to how it helps margin or operations.
Choose the single highest-priority behavior to focus rewards on during the pilot.
Describe tiers, points-per-dollar or actions, earn rates, redemption thresholds, and non-monetary rewards (priority seating, special menu items, early access). Example: 1 point per $1; 200 points = $10 credit usable on dine-in only.
Choose whether rewards are monetary (credits/discounts), experiential (events, priority), or product-based (free items).
Estimate the average cost to you when a customer redeems a reward earned from one target action (e.g., cost of a free item or effective discount). Use your true incremental cost, not menu price.
An assumption about how many points or rewards go unredeemed. Common values: 20–40% for simple programs. Higher breakage lowers realized cost.
Estimate how many additional visits one enrolled member will make during the pilot (e.g., 0.5 additional visits in 90 days). Keep assumptions conservative.
Estimate the average spending associated with the desired behavior (used to estimate incremental margin).
Use contribution margin (sales minus variable food & direct labor) — not gross revenue. Example: 25%.
Formula: estimated_incremental_visits_per_member_period × average_check_amount × (incremental_margin_pct/100). Enter the computed value here to capture the assumption for comparison with reward cost.
Quick check: estimated_incremental_margin - (reward_cost_per_action_est × (1 - breakage_assumption_pct/100)). Enter result to judge program profitability.
List staffing, POS changes, training, redemption rules, inventory, and peak‑period impacts. Note any risks (e.g., redemption spikes leading to long wait times) and mitigation ideas.
How will you enroll members? (email, SMS, POS signup, receipt prompts, social ads). Estimate cost-per-enrollee and realistic sign-up rate.
Choose a pilot that’s large enough to measure behavior but small enough to control. Consider single location, select weekday periods, or a subset of customers.
Select a duration long enough to observe behavior change (common: 60–120 days).
Define 2–4 measurable criteria (e.g., +0.25 visits/member in 90 days, +10% avg check for members, CAC <$15, net value per member > $5). Include required statistical confidence if needed.
Check items completed before pilot launch.
Capture decisions to be made, data you need, and who owns each next step.
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