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How to Build a Loyalty Program That Actually Works

30 June 2026 freshdigital 1:58 am

Most hospitality loyalty programs are set up with good intentions and then quietly fail. The problem is rarely the concept of loyalty itself. It is usually the execution.

Make the Reward Genuinely Worth Pursuing

Customers need to feel that the effort of being loyal is genuinely rewarded, without giving away significant margin.

Make Joining and Using It Effortless

Simpler systems, even a physical card or phone number lookup, often outperform sophisticated digital systems that create more friction than they remove.

Use the Data, Do Not Just Collect It

Use loyalty data to send relevant, personalised offers rather than generic blasts to everyone on the list.

Tie the Program to Genuine Communication

A program that only ever communicates discounts trains customers to wait for them rather than building genuine loyalty.

Train Your Team to Promote It Naturally

A genuine, low-pressure mention from a staff member who believes in the program is more effective than signage alone.

Measure Whether It Is Actually Working

Track whether members actually visit more often and spend more than non-members over time.

If you want help designing a loyalty program that genuinely drives repeat business, talk to Pestle and Mortar.

About the Author

Wayne Farmer - Pestle and Mortar

Wayne Farmer is the founder and chief consultant at Pestle and Mortar, Australia’s hands-on hospitality consultancy. With experience running hotel kitchens, boutique dining venues, and a successful catering business, Wayne has spent his career helping Australian restaurant, cafe, and catering operators build more profitable, better-run businesses. Learn more about Wayne and how Pestle and Mortar works.