Loyalty Programs for Hardware Shops

By Alva Chew · Updated 2026-11-07

In short A hardware store loyalty program works best as points earned in proportion to spend, because baskets range from a US$4 key cut to a US$600 job lot. Start with a reward worth 1% to 2% of spend and make redemption a single step at the counter. Points suit a hardware shop because a contractor and a weekend DIYer both understand spend, earn and redeem.

What should a hardware store loyalty program reward?

Reward spend. A hardware shop sells a wide range at very different prices, from a US$4 key cut to a US$600 order for a bathroom refit. A points-based loyalty program scales with the bill, so the bigger job earns more and you add no rules.

Your customers also come in two kinds. Contractors buy often and in volume, and weekend DIYers buy rarely, usually with a project in mind. Points work for both because the rule is the same: spend, earn, redeem. The rest of this page covers how to size the reward and where hardware shops need a decision.

How big is the market you sell into?

Large and growing in nominal terms. The US Census Bureau tracks monthly sales for building materials, garden equipment and supplies dealers. That category is wider than hardware shops alone, because it also includes lumber yards, paint stores and garden centres.

Measure	Sep 2025	Sep 2026
US building materials, garden equipment and supplies dealers, monthly sales	US$42.18bn	US$44.08bn

Source: US Census Bureau Advance Monthly Retail Trade report, Table 1, NAICS 444, released 15 Oct 2026. Seasonally adjusted, not price-adjusted, advance estimate. The change works out at about 4.5% (our division). It is a national total for the whole category, so it says nothing about a single shop.

Spending that size is contested by big-box chains and online sellers. A small shop rarely wins on price. It can win on advice, stock on the shelf today and a customer who knows the staff. A loyalty card gives that customer a reason to pick your door first.

How many customers actually redeem points?

Fewer than owners expect, and that should shape your design. A study in the Journal of Marketing Research followed a points program at an international retailer whose range includes hardware items, home decor and gardening tools. Customers earned points at 1% of the purchase price, and could redeem them for up to 50% of a basket.

Finding	Figure
Purchases with a redemption	3%
Customers who never redeemed in the 43-month observation period	60%
Customers who redeemed at least once	40%
Average basket cut available by redeeming	nearly 30%

Source: Stourm, Bradlow and Fader, Journal of Marketing Research, April 2015, one retailer and one cohort of customers who joined in January 2008. The authors attribute the stockpiling mostly to cognitive and psychological motives, not to any difficulty at the till.

The practical lesson for a hardware shop is to make the balance visible and the reward easy to reach. A customer who never sees the balance rarely spends it. Show the balance when staff scan the card, and tell the customer when they have enough for something.

How do you size the reward for big baskets?

Start from what a point costs you, then work back to the earn rate. Hardware tickets are large, so a small percentage is already real money. Here is a customer spending about US$40 a visit, with 1 point earned per US$1:

Program	Spend to earn US$5	Back on spend	Visits at US$40
100 points = US$1 off	US$500	1%	about 13
50 points = US$1 off	US$250	2%	about 6
20 points = US$1 off	US$100	5%	about 3

These are illustrations, not benchmarks. Check your own margin by department before choosing a row. For a regular who visits weekly, 2% gets a reward every six weeks or so, and 1% suits a shop with a very thin margin on most lines. Our guide to setting a points earn rate walks through the arithmetic with your numbers.

A contractor who spends US$600 on a job earns US$12 back at 2%. That is a reason to keep buying small items and consumables from you rather than driving to the big store for the same box of screws.

Is a discount better than points for a hardware shop?

Points cost you only when a customer has spent enough to earn them. A standing discount takes money off every sale, including the ones that would have happened anyway, and trade customers will ask for it on everything. Our comparison of loyalty programs and discounts shows the math. Hardware margins vary a lot between a box of nails and a power tool, so a flat discount is hard to price and a points rate is easier to adjust.

What rules does a hardware shop need to decide?

Hardware has a few cases that a café never meets. Decide each one before launch, write the answer on one card at the counter and keep the list short.

Trade and account customers. If they already get a trade price or pay on invoice, decide whether they earn points. One simple rule is points on till sales only.
Thin-margin big items. Lumber, sheet goods and large power tools may earn a lower rate or none. A short exclusion list is easier for staff than a rate for every department.
Services. Key cutting, paint mixing and tool hire either earn points or they do not. Pick one and apply it every time.
Returns. If a customer returns an item, remove the points it earned. Staff should do this in the same step as the refund.
Special orders. Award points when the customer pays the deposit or the balance, and stick with that choice.

A rule that staff cannot recite from memory will be applied differently by each person on shift, and customers will notice.

How do you get sign-ups at a busy counter?

Ask once, at the till. A customer who is paying already has a phone in hand. In a study of survey requests, published in the Journal of Experimental Social Psychology in 2016, face-to-face requests succeeded about 70% of the time against about 10% for emailed requests. That was a student sample with 45 participants in the first experiment, and the authors call the findings exploratory, so treat it as a hint about asking in person rather than a forecast for your shop. Read the summary from the Association for Psychological Science.

Put a QR code on the counter so customers can scan while staff pack the order, and keep the process to one scan at the till. Our guide to launching a loyalty program at the counter covers the staff script and timing.

What if you have more than one shop?

Use one points balance. A customer who buys paint at your main shop and returns for fixings at the second one expects the same card to work. Separate balances per shop push customers to stay in the shop where they have points. If you run branches, see loyalty programs across multiple outlets.

Hardware shop checklist

Give points in proportion to spend.
Start at a reward of 1% to 2% of spend and check it against your margins.
Decide trade, services, returns and big-ticket rules before launch.
Show the balance at every scan.
Ask for sign-up once, at the till.
Use one balance across branches.

Gimify is free for one hardware shop with unlimited members and no time limit, so you can try the middle row of the earn-rate table at your counter before you pay for anything. Customers join by scanning a QR code and entering their email, and the card lives in Google Wallet. Staff add or redeem points on any phone, with no new terminal.

Questions owners ask

What is the best loyalty program for a hardware store?

A points program where customers earn points in proportion to what they spend and redeem them against a later purchase. It treats a US$4 key cut and a US$600 job lot with the same rule, so nobody needs a tier or a stamp card explained.

How many points should a hardware store give per dollar?

One point per US$1 is easy to say at the counter. Then set the reward value. At 50 points for US$1 off, a customer gets back 2%. Check your own margins before you go higher, because hardware baskets are large.

Should contractors and trade customers earn points?

Yes, if they pay at the till and you do not already give them a trade price. Decide one rule, such as no points on invoiced accounts or on items already at a trade price, and tell staff before launch.

Should big items like lumber and power tools earn points?

Decide by margin. Many shops give full points on small items and fasteners and a lower rate or none on thin-margin big-ticket lines. Keep the exclusion list short so staff can recite it.

How do I get customers to sign up when the counter is busy?

Ask once, at the till, while the customer is already paying. A QR code on the counter lets them scan with their own phone while staff bag the order.

Can members earn at one branch and redeem at another?

Yes, with one points balance across outlets. A customer who buys paint at your main shop can use the points on screws at your second shop.