A loyalty club for a small business: beyond the punch card

A loyalty club starts with a practical question: how will you know who comes back to buy, and what will give them a reason to come back? A punch card can suit a business with a fixed product. When you need to see purchase history, keep points or contact customers who agreed to it, it is worth managing the information in an orderly way.

What is the difference between a customer card and a rewards club?

A customer card brings together contact details and past purchases. A club adds rules for earning, rewards and redemption. Not every registered customer is a club member, and recording a phone number is not, on its own, consent to receive advertising.

In KupaLi, points, rewards and campaigns are included in Smart POS. The full comparison between the plans is on the pricing page.

What should you ask for at the register?

Start with the name and the contact detail needed for identification. Explain the benefit in one short sentence: "We can save the purchase under your name and you earn points for next time." If the customer is interested, show the club terms and the request for marketing consent separately. If they decline, carry on with the sale as usual.

Before marketing texts or emails, check consent, records and an opt-out option. Section 30A of the Communications Law (חוק התקשורת) sets rules for sending advertising. The existing customer exception has cumulative conditions, so do not rely on the customer simply giving their number. See the Knesset's explanation of the spam rules (in Hebrew). The sign-up wording must fit the law and how you actually use it.

How do you choose a reward the business can afford?

Choose one rule that is easy to explain and calculate. For example, earning 5% on a ₪200 purchase gives a ₪10 reward for the next purchase. Check the profit left after redemption, promotions and the product cost.

• Decide which purchases earn and how rewards are redeemed, and show the terms up front.
• Check what happens with a return, a cancellation and a combination with a promotion.
• Practice earning and redeeming with staff before offering the reward to customers.

Club points, a gift voucher and a credit voucher are different tools. Do not copy validity or redemption terms between them. The guide to voucher types explains the distinction.

When do you reach out again?

Match the timing to the purchase cycle: a product that runs out every month calls for a different pace than a gift bought once a year. Set a regular time to review, pick a relevant group from those who agreed to marketing, and send a useful reason to come back. You do not need to contact the whole list for every promotion.

How do you know if the club pays off?

Track the number of members joining, the return rate, reward redemption and the profit after their cost. An example: 10 extra purchases of ₪80, at a 30% gross margin, create ₪240 of gross profit before rewards and running costs. Some of the customers would have come back anyway.

Compare similar periods and separate extra sales from a discount on purchases that would have happened anyway. That way you can decide whether to change the reward, the timing or the target audience.

What do you do this week?

1. Define one reward and its cost.
2. Check the sign-up wording and the marketing consent.
3. Teach staff to sign up a customer and redeem a reward.
4. Set a date for the first review of the data.

For the actions in the system, start with the register screen guide. To check which features are available for your business, see store management tools.