Loyalty programs are everywhere in hospitality, but not all of them work. Some drive repeat visits. Others sit quietly in the background, collecting dust and forgotten points.

So what actually gets customers to come back—and spend more when they do?

Is it points? Cash rewards? Free treats? Or is there a better way entirely?

Let’s break down the three most common loyalty incentives—and figure out which one truly drives revenue, not just engagement.

Points-Based Programs: The Outdated Legacy System

For decades, points have been the default loyalty mechanism. You've seen them everywhere: "Earn 1 point per dollar spent!". But they’re losing their power in the digital age.

Point-based loyalty faces:

• Confusing value: How many points equal the actual value? 100 points for a coffee? 500 points for a discount? Customers quickly lose track of what their points are actually worth.

• Idle accumulation: Points often accumulate in apps or on cards, forgotten until they expire. 

• Inflexibility: Once you've set up your points structure, it's almost impossible to change without confusing customers or devaluing existing balances.

• Limited behaviour influence: Traditional points rarely influence when customers visit, what they order, or how much they spend. 

Points made sense in an analog world of punch cards. But in today's digital ecosystem, they're quickly becoming obsolete.

The Free Item Approach: Too Many Hoops for Too Little Value

"Buy 9 coffees, get your 10th free!"

Sound familiar? This approach is simple, but deeply flawed:

• Limited appeal: A free muffin or coffee only appeals to customers who were already planning to buy that item repeatedly.

• Cumbersome tracking: Customers must remember to scan an app, present a card, or keep track of purchases. This friction means many never reach redemption.

• Low perceived value: The reward (a $5 item) often doesn't feel worth the effort of tracking $45-50 worth of previous purchases.

• Zero flexibility: What if a customer wants to try something different? The free item approach leaves no room for choice or flexibility.

• No data collection: These programs often fail to capture meaningful customer data that could inform better marketing or menu decisions.

The "free item" approach is the loyalty equivalent of a one-trick pony. It might work for the occasional customer, but it rarely builds true loyalty across your entire customer base.

Branded Currency: The Next Generation of Loyalty

What if, instead of abstract points or a single free item, you could create an actual currency for your venue? A currency that:

• Has a clear monetary value that customers instantly understand

• Can be spent flexibly on anything in your venue

• Creates a sense of "stored value" that brings customers back

• Can be programmed to drive specific behaviours

• Locks in customer data that you can use for your future reward setting and promotional campaigns.

This is the Brandollars approach—and it's transforming how hospitality venues think about loyalty. Brandollars are a venue-specific digital currency that customers can earn and spend only at your business. Unlike traditional loyalty points, Brandollars have a clear, cash-equivalent value.

Why Branded Currency Outperforms Points and Freebies Every Time

• Immediate Perceived Value: Customers don’t have to guess what their reward is worth. $5 in Brandollars is $5 to spend at your venue—no mental math, no conversion charts, no small print.

• Closed-Loop Loyalty: Customers can only spend Brandollars at your venue. So when they’ve got $15 sitting in their wallet, they’re not wondering if they’ll return—they’re figuring out when.

• Locks in Future Intent: Brandollars aren’t just rewards. They are reasons to come back. Stored value shifts the decision away from “where should we go?” to “let’s use what we’ve already got.”

• Frictionless Onboarding: With Brandollar Connect, customers earn rewards automatically, even when paying with cash or card. No downloads. No forms. No passwords. Just instant gratification.

And it works: 21.87% of users who received automatic Brandollars made their first-ever transaction through Liven, becoming loyalty members without lifting a finger.

• Programmable Incentives: Want to boost footfall on Mondays? Offer 15% back instead of 10%. Launching a new dish? Give bonus Brandollars with every order. This isn’t a static “set-and-forget” program. It’s loyalty you can shape in real-time.

• Omnichannel Loyalty: Brandollars aren’t tied to a single platform or transaction type. Customers can earn and spend them whether they’re dining in, ordering online, picking up or even for catering, making your loyalty program relevant across every customer touchpoint.

• Digital-First Design: There’s no card to swipe, no stamp to collect. Brandollars live in the Magic App or behind a simple QR code—accessible from any phone, ready when your customers are.

• Real Data, Real Decisions: Every Brandollar transaction captures customer behaviour—what they order, when they come, how often they return. It’s not just loyalty. It’s insight you can act on.

Brandollars don’t just reward the past. They shape the future. And they put your brand at the centre of every customer decision.

Currency-Based Loyalty Isn’t a Theory—It’s Proven

Liven data shows exactly what happens when loyalty is powered by real dollars instead of points or punch cards:

• 71% return rate among users who received Brandollar Connect rewards

• 43% of users return and purchase on the same day they receive rewards

• 28% higher activation rate compared to customers who didn’t receive any reward.

These aren’t just feel-good stats. They’re proof that currency-based loyalty drives real customer behaviour—return visits, faster engagement, and higher conversion. And most importantly, they’re results from real-world operators using Brandollars in real venues.

Time to Ditch Points. Here’s Why.

Still using points, punch cards, or “buy 9 get 1 free” tactics? They’re not just outdated—they’re costing you growth.

Currency-based loyalty is fast becoming the new standard. Why? Because it works. It:

• Rewards customers automatically—even if they’re not loyalty members yet

• Offers clear value with no guesswork

• Drives behaviour when and where you need it

• Captures actionable data to personalise marketing
  
  

Want loyalty that actually pays off?
Explore how Liven can transform your venue at Liven.