POS Loyalty Program: Boost Customer Loyalty with A POS System

  • By Matthew Davis
  • Feb 29, 2024
  • Customer Engagement
POS Loyalty Program

In today’s marketplace, a customer loyalty program should be something other than a wish-list item for retailers. In fact, customers now expect some form of loyalty and a reward system for frequently patronizing a business.

Many retailers need to improve at launching a loyalty program for customers. The reason? Many think it’s a time-consuming process requiring tons of new technology.

Here’s some good news: Launching a customer loyalty program is easier than ever. Most loyalty systems, for example, integrate seamlessly with your POS. This adds another powerful tool to your POS that can transform your business and help you drive repeat sales.

So, how does a POS system power a customer loyalty program? Not only does it sync sales and transaction data, helping you better understand customers, but a POS system makes it easier to onboard customers, personalize offers for loyal shoppers, and more.

Let’s look at how a POS loyalty program can improve your store’s performance.

Switch to FTx POS. Create a loyalty program your customers will love! FTx POS offers a first-party integrated loyalty platform, Loyal-n-Save. Sign customers up in-store, online, or in-app.

Understanding POS Loyalty Programs

A Point of Sale (POS) loyalty program is a customer rewards program integrated into a company’s POS system. The program encourages repeat purchases and customer loyalty by offering rewards, discounts, or other benefits.

How does it work?

Customers earn rewards or points for each purchase they make. These points can later be redeemed for free products, discounts, or other perks.

How Does POS System Serve as a Powerful Tool for Managing Loyalty Programs

Check out the five ways a POS will help you build a strong, engaging customer loyalty program:

1. Easy Onboarding

With a POS-integrated loyalty system, you can add a customer to your system in seconds. You collect relevant data, such as your name, email (which will help you with marketing), and phone number.


A phone number is helpful if you plan to do SMS text marketing campaigns; however, it’s not essential.

Once a customer is in your system, you can simply add them to your store (if you’re using a tool like Loyal-n-Save). And voila! They’ve been successfully added to your system in about 30 seconds.

2. Data Segmentation

With this data stored in your POS database, you can leverage it for segmentation and engagement.

For example, you can add a pop-up message on your POS on the customer’s birthday. You can also organize your loyalty members based on their preferences and buying behaviors.

This helps you with the next step: Personalization.

3. Personalized Offers

Customers expect personalization. The more personalized the offer, the more likely you will build a strong customer relationship.

How does a POS do this? By integrating with your POS, you’ll start by collecting better data. You can use this data to design offers for targeted segments.

For example, you could segment all your October birthdays together. Then, design a birthday campaign in October with an offer for a newly introduced product you think your customers will love (based on buying behaviors).

Or you could create campaigns to target frequent shoppers with rewards that drive them to return.

4. Personalized Experience

Your POS system should do many things, but most importantly, it should record your customers’ behaviors and patterns so you can use that information to create tailored experiences.

Upon signing up for your loyalty program, customers are giving you insight into their entire demographic. You know (pretty much) everything about them; with time, you learn their shopping habits.

By leveraging this data, retailers can make personalized recommendations that maximize upsell opportunities and promote a sense of brand loyalty.

For example, does Beth like to have a drink when she checks into the hotel? Have one waiting for her before she arrives. Does Carlos get an oil change every 4,000 miles? Send him a coupon when it’s almost time for his next service.

It’s the little things that go a long way when trying to achieve customer loyalty.

5. Instant Gratification

Don’t make your customers wait for rewards. Instead, you should give them opportunities to use and redeem their rewards.

For example, have you ever gone shopping and spent a lot of money only to get a coupon for your next visit? Although that coupon might drive return visits, it’s not likely to put a smile on your customers’ faces. They can see the promotional element. They just spend a lot of money and want to be rewarded.

With a POS integration, you can instantly track reward balances and add those to the transaction as it happens. This way, you aren’t leaving customers wishing they could unlock their rewards when they want to.

Features and Benefits of Integrating Loyalty Programs with a Point of Sale (POS) System

There are quite a few benefits of POS loyalty program integrations, such as:

1. Data-Driven Insights

Feature: Real-time transaction data, including purchase history, frequency, and preferences, can be collected seamlessly through POS system integration.

Benefit: Businesses can make data-driven decisions, use targeted marketing strategies, and use personalized promotions by gaining valuable insights into customer behavior.

2. Personalized Experiences

Feature: Businesses can customize rewards, promotions, and offers based on customers’ preferences and purchase behavior through POS-integrated loyalty programs.

Benefit: POS loyalty programs help personalize incentives and experiences, fostering stronger connections, brand loyalty, and customer engagement.

3. Streamlined Program Management

Feature: POS systems enable businesses to efficiently manage loyalty programs, including enrollment, point tracking, reward redemption, and member communication.

Benefit: Businesses can efficiently manage and monitor loyalty program activities, track program performance, and adjust as needed to optimize effectiveness.

4. Frictionless Checkout

Feature: Loyalty program integration with POS systems allows for seamless exchange and inclusion of discounts, rewards, or points at checkout.

Benefit: Customers can enjoy a seamless checkout experience where they can redeem rewards and apply discounts instantly at checkout, making their shopping experience more convenient and satisfying.

5. Omnichannel Integration

Feature: POS-integrated loyalty programs work seamlessly across multiple channels, including in-store, online, mobile, and app-based transactions. This means shoppers can earn and redeem loyalty rewards regardless of how they interact with your business.

Benefit: POS loyalty programs allow customers to earn and redeem rewards across various touchpoints. Thus, it increases engagement, loyalty, and a personalized shopping experience regardless of the channel used.

9 Ways We Can Use POS To Improve Customer Loyalty

Are you trying to find different ways to improve your brand’s customer loyalty. Here are a few of the methods that you can try:

1. Personalized Offers, Discounts, and Automated Email Marketing

By utilizing POS data, we can analyze customers’ purchasing behavior and preferences. This allows for personalized offers and discounts based on individual preferences.

You can also try automated email marketing campaigns based on customer interactions and purchase history.

Here are some methods you can try:

  • Customer Segmentation (can achieve this using POS system customer reports)
  • Email marketing by running personalized email campaigns
  • Automate sale and loyalty process for quicker customer service
  • Send targeted promotions and discounts

2. Fostering Feedback and Improvement

Businesses can benefit from implementing POS systems to collect customer feedback and gather valuable insights at their point of sale. These pointers can help identify and rectify areas for improvement.

Companies can strengthen loyalty and enhance the overall customer experience by actively seeking and addressing customer feedback.

Here are some methods you can try:

  • Offer incentives for completing surveys or reviews
  • Perform inventory checks and review process quality based on feedback
  • Identify improvement and expansion areas based on customer recommendations
  • Prompt sale and offer discussions backed by the feedback and suggestions

Mobile Loyalty Apps

Develop loyalty mobile apps that integrate with POS systems. Customers can track rewards, access exclusive offers, and engage with the brand through this. Mobile loyalty apps greatly benefit customer engagement, increased loyalty, and retention.

Here are some methods you can try:

  • Allow customers to have complete visibility about their reward points.
  • It lets users view rewards balance and transaction history, thus, maintaining transparency.
  • Can offer mobile-exclusive promotions and discounts.
  • Gamify the loyalty experience with challenges and rewards.

4. Tiered Loyalty Programs with Instant Rewards Redemption

Tiered loyalty programs are reward structures based on customer engagement, participation, and spending. Customers can instantly redeem the reward points at the checkout counter. This increases customer gratification and encourages repeat purchases.

Here are some methods you can try:

  • Multiple-tier rewards program based on customer engagement
  • Provide instant exchange of loyalty points for escalating customer experience.
  • Various options to redeem the rewards – discounts, offers, carry forward, etc.
  • Give customized service to customers and reward milestones to them.

5. Birthday, Anniversary Rewards, and Integrated Gift Card Programs

Point of sale software can record customer information, such as birthdays and anniversaries. Through POS loyalty programs, companies can offer personalized rewards and discounts to celebrate these occasions. By integrating gift card programs, customers can enjoy the shopping experiences and get personalized offers, further driving engagement and loyalty.

Here are some methods you can try:

  • Collect customer birthdates and anniversary dates at checkout.
  • Automatically trigger birthday and anniversary rewards.
  • Offer incentives for purchasing and gifting gift cards.
  • Enable gift card redemption at the point of sale.

6. Special Events, Promotions, and Customer Account Management

Using POS systems, you can effectively manage promotions and special events tailored to specific occasions or customer segments.

For example, customer account management features can help you store customer preferences, contact details, and other relevant data.

This information helps companies create personalized interactions and targeted marketing campaigns.

Here are some methods you can try:

  • Create marketing campaigns using POS data for holidays, events, promotions, etc.
  • Offer ‘first look’ preferences and exclusive discounts to loyalty program members.
  • Allow customers to manage their preferences for better customer service.
  • Offer personalized communications and offers based on the given customer data.

7. Social Media Integration for Cross-selling and Up-selling Suggestions

POS systems can potentially build stronger customer relations and offer better services. They use customer data and purchase history to tailor special events or occasions and promote them on social media handles. Integrating social media platforms and targeted marketing campaigns can help elevate the store’s performance.

Here are some methods you can try:

  • Integrate POS software with social media platforms.
  • Create targeted ads based on customer segmentation and purchase history.
  • Promote personalized product recommendations based on purchase and search history.
  • Track conversions and performance and measure the effectiveness of social media campaigns.

8. Streamlined Checkout Experience with Limited-Time Offers and Flash Sales

Businesses can enhance their checkout experience by utilizing POS systems.

For example, limited-time deals and flash sales can create a sense of urgency and encourage purchases.

Displaying targeted promotions and discounts at the point of sale can increase impulse buying and foster customer loyalty.

Here are some methods you can try:

  • Display limited time offers and flash sales at the point of sale.
  • Offer exclusive discounts to loyalty program members during checkout.
  • Use POS data to determine optimal timing for promotions.
  • Create urgency with limited inventory alerts and countdown sales.

9. Multi-Channel Loyalty Integration for Customer Recognition and Referral Programs

Multi-channel loyalty integration can create a unique shopping experience by recognizing and rewarding customers across various touchpoints.

For example, in-store, online, and mobile (app-based) shopping.

Customers can complete their orders, claim loyalty points, and get rewarded for customer advocacy. Also, this gives companies a chance to expand their customer base and increase loyalty.

Here are some methods you can try:

  • Integrate loyalty program across all customer touchpoints.
  • Offer rewards for referrals and customer advocacy.
  • Track referral activity and reward customers accordingly.
  • Provide consistent rewards and benefits across channels.

Improve Customer Loyalty through POS System

Wrapping Up

When customers reach a reward and add a touch of personalization. When customers feel they are noticed and appreciated, true loyalty is fostered, and more purchases are made.

The bottom line is that your point of sale system should streamline your workload, prevent loss, and drive sales. The right POS solution will make your operations more efficient and grow your business and loyal customer base! If it doesn’t, it might be time to look for a new one.

Here at FTx POS, you can find all the features that help manage sales, promotions, inventory, and customer information. If you want to explore these features, book a consultation with our team. Let’s understand your requirements, pain points, and the benefits of our features in detail.

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Business Experts & Contributors

A New Solution Coming To FasTrax

Danielle is a content writer at FTx POS. She specializes in writing about all-in-one, cutting-edge POS and business solutions that can help companies stand out. In addition to her passions for reading and writing, she also enjoys crafts and watching documentaries.

Danielle Dixon

Content Writer
A New Solution Coming To FasTrax

Matthew Davis is a content marketing specialist for FTx POS. With experience in marketing, brick-and-mortar retail, and ecommerce, Matthew enjoys writing about strategies and technology retailers can use to grow. Previously, he managed retail operations for a sports/entertainment facility and worked in marketing consulting.

Matthew Davis

SEO Specialist/Content Writer

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