Most coffee shop loyalty programs look good on the surface—customers earn points, redeem rewards, and come back for more. But here’s the catch: between 8% and 18% of loyalty-attributed sales end up being promotions and comps that coffee shops pay for. And most of that spend goes toward rewards on purchases customers were going to make anyway.
In short, these programs reward repeat behavior but fail to create new purchasing occasions.
How Joe Loyalty is Different
At Joe, we believe loyalty marketing should drive real growth, not just give discounts.
Higher Participation
While traditional programs average 20–30% participation, Joe’s loyalty experiences average 65% participation. That means nearly two out of every three customers are engaging regularly with your loyalty experience.
Smarter Use of Funds
Rather than asking you to take the risk on how much loyalty costs will be, Joe sets a flat loyalty marketing rate starting at 6% of revenue. That fee funds:
- Reward redemptions and discounts
- Targeted marketing to bring customers back more often
Universal Rewards Engine
Our platform leverages data from millions of customer profiles to:
- Predict who’s most likely to increase their spend
- Automatically send personalized offers to bring them back
- Maximize monthly spend per customer at your shop
You can even choose to increase your loyalty marketing rate to grow more aggressively—we’ll do the rest.
How to Calculate Your Current Loyalty Marketing Budget
To understand your current loyalty marketing performance, here’s a simple way to break it down:
Step 1: Find Your Loyalty-Attributed Revenue
- Go to your Loyalty or Rewards report in your POS or reporting dashboard.
- Look for "Loyalty Attributed Revenue" — this shows the total sales that occurred through your loyalty program.
- Divide this by your total revenue to find your loyalty participation rate
- For example, if 35% of your total revenue is loyalty attributed, your participation rate is ~35%.
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- Joe partners typically see this number at 65% or higher.
Step 2: Find Your Promotions & Comps
- In your Sales report, locate the line item for Promotions and Comps.
- This is the actual cost of rewards and discounts you’ve given out.
Step 3: Calculate Your Promotions Rate
- Divide Promotions and Comps by your Loyalty Attributed Revenue.
- This gives you your promotions rate — the percentage of loyalty-driven sales you’re giving away in discounts.
Example:
Loyalty Attributed Revenue = $10,000
Promotions and Comps = $1,200
Promotions Rate = $1,200 ÷ $10,000 = 12%
This means you’re spending 12% of your loyalty-driven sales on rewards—often on orders that would have happened anyway.
Why This Matters
The goal of loyalty marketing is simple: use a fixed budget to generate new customer behavior—whether that’s more frequent visits, larger order sizes, or reactivating lapsed guests.
Joe does this exceptionally well by:
- Structuring rewards to maximize incremental purchases
- Using data-driven predictions to send the right offers at the right time
- Starting with a low, predictable 6% flat rate that drives real ROI
We don’t just reward loyalty. We grow it.