Guide · Loyalty

How to choose a loyalty platform.

The short answer

Decide the program first, then pick the platform that runs it. The questions that matter: can guests redeem in one step in the app, on the web and at the register; does it integrate with your POS and ordering platform; can members sign in without friction; can you measure incremental visits rather than redemptions; and do the economics work for franchisees. Enterprise platforms like Punchh, Paytronix and Thanx and POS-native loyalty each fit different brands, and with agentic AI tools a program built around your own customers and budget is now realistic for far more of them.

By Walter Colindres Updated

The kinds of platform

Enterprise loyalty and CRMPOS-native loyaltyBuilt for you
ExamplesPunchh (PAR Technology), Paytronix, ThanxLoyalty built into Toast or SquareYour own program, built on your data, or custom features on top of a platform
Fits bestMulti-unit and franchised brands that need segmentation, campaigns and many integrationsBrands on one POS that want a simple program running quicklyBrands whose program doesn't fit a vendor's template, or whose budget doesn't fit an enterprise contract
Watch forIntegration effort with your POS, ordering and appLimited program design and data accessMaintenance, fraud controls and POS integration for in-store redemption

Building your own used to mean a large team. Agentic AI tools have changed that: a small, senior team can now build a points, offers or subscription program shaped to your guests and your margins, and own the data from day one. You take on maintenance, fraud controls and the POS integration for in-store redemption, so it pays off when your program is genuinely different or the vendor price doesn't fit. A loyalty platform will usually get you about 80% of the way; the last 20%, the program mechanics that are yours, is where vendor customization and workarounds get expensive. Design & Build is how I do that work.

For context: PAR Technology bought Punchh in 2021 for about $500 million, combining loyalty with its POS and back-office products. Vendors consolidate and change ownership, so ask each one about its roadmap, not just its features.

Six questions to answer before you choose

  1. What program are you running? Points, visits, tiers or a paid subscription, and which guests each incentive is for. A platform can't fix a program that pays guests for visits they'd make anyway.
  2. Can guests redeem in one step everywhere? In the app, on the web and at the register. Offers fail at redemption; at Popeyes, fixing one redemption flow took checkout conversion from 3.36% to 9.82%.
  3. Does it integrate with your POS and ordering platform? Ask for live references running your exact POS and ordering combination.
  4. How do members sign in? A forgotten password ends the visit. Magic links took Jack in the Box sign-up success to 99%.
  5. Can you measure incrementality? You need holdout groups and margin by guest, not just redemption counts.
  6. Who pays, and how? In franchised systems, the cost and the value have to make sense to franchisees, or adoption stalls.

Questions people ask

What are the main restaurant loyalty platforms?

Enterprise loyalty and CRM platforms such as Punchh (owned by PAR Technology), Paytronix and Thanx; loyalty built into POS systems such as Toast and Square; and custom programs built on a brand’s own data platform.

Points, visits, tiers or a paid subscription: which program model works best?

It depends on what behavior you need to change. Points suit broad, frequent-guest programs; tiers reward your most valuable guests; paid subscriptions trade a fee for a repeated perk and need tight economics. Whatever the model, aim incentives at guests whose behavior they can change. Why loyalty gives away margin →

Should we build our own loyalty program instead of buying a platform?

It’s more realistic than it used to be. Agentic AI tools have cut the cost of building, so a program shaped to your guests, margins and budget, with your own data from day one, is within reach for far more brands. Budget for maintenance, fraud controls and the POS integration for in-store redemption. Design & Build →

How do we know if our loyalty program works?

Measure incremental visits and margin against a holdout group, not redemptions or member counts.

Not sure where to start?

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