Many venues rely on their POS provider's built-in loyalty solution because it seems simple and cost-effective. Why pay extra for a separate loyalty platform when your POS already includes one?

But most of these systems are points-based and deliver little to no impact on business outcomes. What looks like savings on a lower-cost POS often costs more in the long run in lost average order values, stunted growth, and fragmented customer data.

Worse, points-based loyalty still requires bolt-on CRM systems, campaign tools, and analytics to actually drive results. Suddenly, that bargain isn't looking so good.

The Hidden Costs of 'Free' POS Loyalty

Your POS provider offers "free" hardware and includes loyalty at no additional cost. But there's always a catch.

First, that hardware isn't free. It's subsidised by inflated transaction fees - often 3% or more per transaction on digital orders. Over a year, across multiple venues, those transaction costs dwarf any savings on hardware. You're paying for that "free" terminal every single day.

Second, old-world loyalty doesn't move the needle. Traditional points-based systems that replicate the old world coffee-style punch cards offer already regular customers a discount for staying regular - something they were already going to do - as opposed to incentivising new customers to come visit and stay and spend more over the long term.

Third, you are missing out on the critical capability to use your loyalty program to drive the very behaviour you sought to encourage - more visits at a higher frequency, higher order value and overall spend. Without the ability to segment customers, automate campaigns, or analyse behaviour across venues, you're flying blind. Want to fill Monday lunch slots? Too bad. Your POS loyalty can't target customers with time-windowed incentives. Want to identify your top 20% of spenders? You'll need a separate CRM tool for that.

Suddenly, your "all-in-one" solution requires bolt-on CRM software, marketing automation platforms, advanced analytics tools, and additional integrations just to operate at scale. 

And the real killer is fragmented data. When your loyalty, ordering, payments, and inventory systems don't talk to each other, you can't see the full picture. You can't identify trends. You can't act fast. In hospitality, that's not just inefficient. It's revenue left on the table.

Fourth - you aren’t tapping the latest technology to drive enrolment and engagement. Liven’s Brandollar Connect and Magic App can drive a 6x increase in participation in your loyalty program - meaning you catch and convert more customers into super fans.

The Problem with Points-Based Loyalty

Most POS providers offer point-based loyalty. These systems fail because they're psychologically weak. 500 points could mean a whole free meal or just an add-on cupcake. They are configurable, yes. But they aren’t easy to understand and don’t invoke any motivation to redeem them. 

A Deloitte study showed that about 32% of restaurant loyalty program members use their membership several times a week, and about 47% of them use it several times a month. 

But Brandollars see redemption rates as high as 80%! Brandollars are your venue’s own currency. Customers earn a percentage back (say, 15% on a $50 bill = $7.50 in Brandollars), and they can only spend it at your venues. You can also sell currency packs and bank future dining intent upfront. That's cash flow today for guaranteed visits tomorrow.

Unlike points, Brandollars have actual dollar value, and they can only be spent at your venue. 

Why are Brandollars successful?

1. They are intuitive. $5 in Brandollars is exactly that, and customers immediately know the amount resting in their wallet.

2. The psychology that actual money is sitting in their digital wallets compels them to spend it. Because who wants to leave money on the table?

The Smarter Alternative: Currency-Based Loyalty as Part of a Unified Platform

Enterprise QSR operators need POS systems that don't just deliver value at the time they're bought but also act as revenue and growth engines, fueling demand, engagement, and the right kind of customer behaviours. 

Currency-based loyalty—like Liven's Brandollars—flips the script on old-school loyalty. Instead of passive points that customers forget about, you're giving them venue-exclusive currency that feels like real money.

But here's where it gets powerful: because Brandollars are integrated across your entire tech stack (POS, online ordering, kiosks, mobile app), you capture complete customer data in one place. You can set up offers to fill low-footfall periods. You can reward your best customers without giving away margin to third-party delivery platforms.

And unlike points, Brandollars double as working capital. 

The Bottom Line

The cheapest POS isn't the one with the lowest entry price. It's the one that doesn't cost you customers, revenue, or your ability to grow.

If your current system can't tell you why your best customers stopped coming back, can't automate personalised campaigns, or requires a dozen different platforms just to function, it's time to recalculate the true cost.