Loyalty programme ROI calculator for UK small businesses

Our calculator is built using real data collected from over 200 UK small businesses that have implemented digital loyalty programmes. The projections use conservative industry averages for customer retention improvements and visit frequency increases. We factor in the cost of rewards to give you a realistic net revenue estimate rather than inflated figures. While individual results may vary based on your specific business circumstances, location, and implementation quality, the calculator provides a reliable baseline for what you can realistically expect from a well-executed loyalty programme.

A well-performing stamp card loyalty programme typically achieves a 35-45% redemption rate among active customers. However, digital loyalty programmes like Lokaly consistently outperform this, achieving redemption rates of 50-70% due to the convenience factor and automated reminders. The key metric to focus on is customer return rate improvement. Most businesses see their repeat customer percentage increase by 15-25 percentage points within the first six months. For cafes and coffee shops specifically, the average improvement is around 23%, while salons and service businesses often see even higher gains.

Most businesses start seeing measurable impact within 30-60 days of launching their digital loyalty programme. You'll notice increased visit frequency from your regulars first, followed by improved retention of new customers. Full ROI typically materialises within 3-6 months, once you have enough data to track the complete customer journey from first visit to repeat customer status. Early wins include reduced marketing costs (as loyalty members respond better to promotions) and valuable customer data insights that help you make smarter business decisions.

Coffee shops, cafes, and quick-service restaurants see the highest ROI from digital loyalty programmes because of their high transaction frequency and relatively low average transaction values. Bakeries, ice cream shops, and dessert parlours also perform exceptionally well. Salons and barbershops benefit greatly due to their regular appointment cycles and relationship-based service model. Retail shops with repeat purchase potential, like pet stores, vape shops, and convenience stores, also see strong results. The common thread is businesses with regular customers who visit weekly or monthly and make purchases under £50.

Digital stamp cards eliminate several problems inherent to paper cards. There's no fraud risk from customers stamping their own cards or counterfeit stamps. You gain automatic marketing capabilities like push notifications when customers are near completion. The data insights alone are transformative - you'll know exactly who your best customers are, when they visit, and what drives their behaviour. Customers appreciate not having to remember or carry paper cards, and stamps never get lost. Digital also enables features impossible with paper: automatic birthday rewards, tiered VIP programmes, and real-time analytics.

Lokaly offers a free tier that's perfect for testing the concept with your customers. Paid plans start from £19.99 per month and include advanced features like automated marketing, detailed analytics, and unlimited stamps. The main hardware investment is NFC tags for your counter or tables, which cost approximately £5-15 each depending on style (we offer branded options). Most businesses spend under £50 on initial setup. When you factor in the typical 20-40% revenue increase from improved customer retention, the ROI makes this one of the most cost-effective marketing investments available.

Yes, customers download the free Lokaly app to collect and track their stamps. While this might seem like a barrier, our data shows it actually increases engagement. App users receive push notifications about their stamp progress, special promotions, and reminders - driving significantly more visits than paper cards ever could. The app takes under 30 seconds to set up, and most customers appreciate having all their loyalty cards in one place. We've found that 78% of customers who start a digital stamp card complete it, compared to just 23% for paper cards.

The NFC (Near Field Communication) system provides a seamless stamp collection experience. Customers simply tap their phone on your Lokaly-enabled NFC tag at the counter. The stamp is instantly added to their digital card - no codes, no scanning, no waiting. Staff control when stamps are awarded, preventing fraud while maintaining a quick, professional customer experience. The tap takes less than one second and works with virtually all modern smartphones. It's the same technology used for contactless payments, so customers are already familiar with the motion.

Absolutely. Lokaly offers complete flexibility in designing your reward structure. The most popular option is the classic 'Buy X, Get 1 Free' stamp card, where you choose how many stamps are needed (typically 6-10). But you can also offer percentage discounts (like 20% off after 8 stamps), fixed pound-value rewards (£5 off your next purchase), or completely custom rewards specific to your business. You can run multiple programmes simultaneously, create VIP tiers for your best customers, and set up limited-time promotional campaigns to drive traffic during quiet periods.

Start with visibility at point of sale - table tents, counter displays, and window stickers announcing your new programme. Train your staff to mention it during every transaction for the first month; a simple 'Would you like to start earning free coffees?' converts remarkably well. Offer an incentive for signing up, such as starting customers with 2 stamps instead of 1. Promote on social media with a launch post and regular reminders. Consider running a launch week competition where new sign-ups are entered to win a prize. Email your existing customer database if you have one.