Guides

Loyalty programs for multiple outlets: how shared points work

By · Updated

In short A loyalty program for multiple locations works best with one points balance per customer that they can earn and redeem at any outlet. The decisions that need care sit behind the counter: reporting by outlet, who pays for a reward redeemed at a different outlet, and which staff can adjust points. Settle those three before launch, then roll out one outlet at a time.

What is a loyalty program for multiple locations?

A loyalty program for multiple locations lets one customer earn and redeem rewards at more than one of your outlets under a single membership. The customer joins once, carries one card, and the program records which outlet each transaction happened at.

That sounds simple, and for the customer it should be. The work sits behind the counter. You need to decide how balances are held, what staff do at each till, how you read results by outlet, who pays for rewards, and which staff can change a balance. This guide takes those decisions in the order you will meet them.

If you are new to the idea, start with what a points-based loyalty program is, then come back here.

Should customers have one balance or a balance per outlet?

There are two ways to hold points across outlets.

SetupHow it worksWhat the customer seesWhere it fits
One shared balanceEvery outlet adds to and redeems from the same balanceOne number, usable anywhereMost groups, company-owned or franchised
Per-outlet balancesEach outlet keeps its own balance for the same memberSeveral small numbers, each usable in one placeOutlets run as separate businesses with no shared brand

A shared balance is the better default. A customer who visits two of your outlets reaches a reward in half the visits it would take on two separate balances. With per-outlet balances, a customer who splits visits between your city branch and your mall branch may never reach a reward at either, and will stop scanning the card.

Per-outlet balances also confuse staff. A customer who asks “how many points do I have?” expects one answer. If your team has to explain that the points earned across town do not count here, you have created a complaint at the counter.

The one case for per-outlet balances is a group of outlets under different brand names with different menus and different owners, where a shared reward would never make sense. If the outlets share a name, share a balance.

What happens at the counter when a member visits a different outlet?

With a shared balance, the routine at every outlet is identical:

  1. The customer shows their card, usually on their phone.
  2. Staff scan it and see the current balance, wherever it was earned.
  3. Staff enter the bill amount, and the program adds points in proportion to the spend.
  4. If the customer wants to redeem, staff deduct the points and give the reward.

Three things go wrong in practice, and all three are about consistency.

Different rewards at different outlets. If the flagship offers a free cake and the kiosk has no cakes, a member arrives expecting something the outlet cannot give. Keep the rewards list to items every outlet can serve, or make the reward a fixed value off the bill.

Different earn rates. If one outlet runs double points and the others do not, customers will ask why. Keep one earn rate across the group. Run any promotion at every outlet at once.

Staff who do not know the program. A new hire at outlet three who has never processed a redemption will turn a member away. Train every outlet before it goes live, and put a one-page guide at each till.

How do you report results by outlet?

A shared balance hides nothing if your reports split activity by outlet. Before you choose software, check that you can see, per outlet and per month:

  • New members who joined at that outlet
  • Points issued at that outlet
  • Points redeemed at that outlet
  • Rewards redeemed, by reward type
  • Members who visited that outlet more than once

The two numbers that matter most for a multi-outlet group are points issued and points redeemed per outlet. An outlet that issues many points and redeems few is building goodwill that other outlets may later pay for. An outlet that redeems far more than it issues is where your members like to spend their rewards, often because it is the most convenient one.

Neither pattern is a problem in itself. It only becomes one when outlets have different owners, which brings us to funding.

Who funds a reward redeemed at another outlet?

This is the question that decides whether a franchise program works.

Company-owned outlets

If you own every outlet, the business pays for every reward wherever it is redeemed. You do not need to move money between outlets. Use the issued and redeemed reports to see which outlets drive sign-ups and which absorb the redemptions, and judge each manager on both.

Your accountant will still want to know about unredeemed points. Under IFRS 15, the IASB’s revenue standard issued in 2014, revenue tied to points a customer has earned but not yet used is usually deferred until they redeem or the points lapse. IFRS 15 replaced IFRIC 13, the earlier interpretation on customer loyalty programmes. Ask how this applies in your country.

Franchised or jointly owned outlets

When outlets have different owners, someone has to pay for the reward that a customer earned at one franchisee and redeemed at another. There are three common rules:

RuleHow it worksStrengthWeakness
Redeeming outlet paysEach outlet absorbs the cost of rewards it hands outNo money moves between ownersBusy outlets near offices or transport carry more than their share
Issuing outlet paysThe outlet that issued the points reimburses the outlet that redeemed themCost follows the sale that created itNeeds a monthly settlement between owners
Shared fundEvery outlet pays a fixed contribution into a pool that covers all rewardsPredictable cost for each franchiseeNeeds someone to run the fund and publish its accounts

Whichever rule you choose, write it into the franchise agreement or a program policy before launch. Settle it per month using the issued and redeemed report for each outlet. A rule agreed after the first dispute is much harder to make stick.

Who should be able to change a member’s points?

Points are a store of value, so treat them like cash at the till. Set three levels of access before launch:

  • Counter staff can add points for a purchase and redeem a reward. They should not be able to add points without a sale.
  • Outlet managers can correct a mistake at their own outlet, such as a bill entered wrongly.
  • Head office or the owner can adjust any balance in any outlet, change the earn rate and change the rewards list.

Ask the vendor whether every adjustment is logged with the staff member, outlet and time. In a franchise, a franchisee who can add points freely at their outlet creates a cost that other franchisees may end up funding.

In what order should you roll out a loyalty program across outlets?

A staged rollout catches problems while they are small.

  1. Pick a pilot outlet. Choose one with a steady flow of regulars and a manager who will report problems honestly.
  2. Run it for two to four weeks. Watch how long a scan takes, how often staff forget to offer the program, and which questions customers ask.
  3. Fix the routine. Rewrite the till guide and adjust the rewards list based on what you saw.
  4. Agree the funding rule if any outlet has a different owner.
  5. Add outlets in small groups. Train each group’s staff before their go-live day.
  6. Accept redemptions everywhere from day one. An outlet that joins must honour points earned at any outlet already in the program.
  7. Review outlet reports each month. Compare issued and redeemed points per outlet and act on the outliers.

Before you sign up, check how the vendor prices extra outlets. Some charge per location or per staff login, so the bill grows each time you open. Our guide to loyalty software that does not charge per location works through the numbers at one, three and ten outlets, and the loyalty program cost guide covers the other fees to expect. If you run cafés, our page on loyalty programs for cafés covers menu and reward choices.

How does Gimify handle multiple outlets?

Gimify keeps one points balance for each member across every outlet, so a customer can earn at one branch and redeem at another, and staff add or redeem points on any phone at the counter. One outlet is free, and unlimited outlets cost US$99 a month with no per-member or per-location fees.

Questions owners ask

Can customers earn points at one outlet and redeem them at another?

Yes, if the program keeps one balance per customer across all outlets. That is the simplest setup for customers. Programs that keep a separate balance per outlet make customers track several small balances, and many will never reach a reward at any of them.

Who pays for a reward redeemed at a different outlet?

In a company-owned group, the business pays either way, so you only need reports that show where points were issued and where they were redeemed. In a franchise, agree a rule in writing before launch: the redeeming outlet absorbs the cost, the issuing outlet pays it, or a shared fund covers it from a fixed contribution.

Should every outlet join the loyalty program on the same day?

Usually not. Launch at one outlet for two to four weeks, fix the counter routine, then add outlets in small groups. Every outlet must accept redemptions from the day it joins, or members will be refused a reward they earned elsewhere.

Do loyalty points count as a liability in my accounts?

Under IFRS 15, revenue linked to points that customers have not yet redeemed is usually deferred until they redeem or the points lapse. Ask your accountant how this applies to your business and your country.

Does a multi-outlet loyalty program cost more per outlet?

It depends on the vendor. Some charge per location or per staff login, so the bill grows with each outlet. Others charge one flat price for unlimited outlets. Price the program at your current outlet count and at the count you plan for in three years.

Read next

Start free

Gimify is free for one outlet with unlimited members and no time limit. Unlimited outlets are one flat monthly price.

See plans