From Retention to Revenue: Why Your Market Needs the Right Rewards Program

From Retention to Revenue: Why Your Market Needs the Right Rewards Program

Operators know the challenge: keeping shoppers coming back without cutting too far into margins. Loyalty programs are one of the few tools proven to make a difference. Eighty-five percent of consumers say rewards make them more likely to keep shopping. Program members generate 12–18% more incremental revenue each year than non-members. 

In food and beverage specifically, the stakes are even higher. Seventy percent of first-time visitors never return. The right incentive program can turn that one-time shopper into a repeat customer.

At 365, you have two distinct ways to reward shoppers: Loyalty and Enhanced Rewards. Both can drive frequency and spend, but they work in very different ways. The question is: which one fits your market? 

To answer that, let's start by looking at both programs. 

 

What the programs actually do 

Before deciding which program fits your market, you need to understand what each one actually looks like in practice. The details matter—because the mechanics of how points are earned and redeemed shape both shopper behavior and your bottom line. 

365 Loyalty 

Think of Loyalty as the "cash back" option. Shoppers earn points on every purchase made with their Global Market Account (GMA). By default, it's one point per penny spent, but you can boost certain products with multipliers up to 25x. Points never expire. At the end of each quarter, balances are automatically converted into cash back on the shopper's account. 

The redemption ladder looks like this: 

  • 10,000 points = $1 

  • 15,000 points = $3 

  • 20,000 points = $5 

  • 30,000 points = $9 (the maximum per redemption) 

Your cost is funded by a 2% withholding on GMA sales, scaled by any multipliers you apply. That makes the program predictable and easy to model. 

Shopper experience: a steady rebate that feels automatic. 

365 Enhanced Rewards 

Enhanced Rewards takes a different approach. It's a status-based program built into 365Pay, designed around tiers and product-for-points redemptions. 

Shoppers start as Members and can level up through three higher tiers. As they move up, their earning rate increases from $1 = 10 points to $1 = 11, 12, or 13 points. Instead of cash back, the main incentive is trading points for items you select from your inventory. Each redemption tier can feature up to ten products, complete with images and branding. 

Because redemptions are fulfilled from your shelves, there are no EFT disbursement fees. Your actual cost is the COGS of the products you list. Operators configure everything—tiers, thresholds, catalogs—in ADM and can scope the program by location or organization. 

Shopper experience: a visible climb toward rewards they can see in the app and at the kiosk. 

 

How the two programs differ 

At first glance, both programs reward shoppers and build repeat visits. But once you look closer, their differences become clear—and those differences determine how much effort you put in, what it costs you, and how your shoppers respond. 

 

 

365 Loyalty 

365 Enhanced Rewards 

Core value 

Cashback at fixed thresholds 

Products for points; optional cashback 

Earning structure 

~100 points per $1; multipliers 0x–25x 

Tiered earn rate ($1 = 10–13 points) 

Operator funding 

2% of GMA sales withheld, scaled by multipliers 

Cost of products redeemed (COGS), no EFT fees 

Shopper perception 

Quiet, reliable rebate 

Gamified status and visible rewards 

Admin effort 

Low: set multipliers, review quarterly 

Medium/high: design tiers, update catalogs 

Control knobs 

SKU multipliers 

Tier thresholds, catalog content, branding 

Enablement 

Toggled by 365 staff 

Managed in ADM by operator 

 

Where each program shines 

Choosing the right program isn't about which one is "better." It's about fit. Different markets, shopper patterns, and operator resources call for different tools. Here's where each program proves its value. 

Loyalty works best when: 

  • You want something simple, predictable, and low-touch. 

  • Locations are high-volume with small baskets, such as manufacturing plants, warehouses, or smaller corporate sites. 

  • You run occasional product pushes. SKU multipliers are a fast way to feature items without extra admin work. 

  • You'd rather have 365 handle enablement and limit ongoing program maintenance. 

In practice: Loyalty delivers a consistent 1–3% rebate to shoppers, depending on how much they spend. 

Enhanced Rewards works best when: 

  • You want a branded, engaging experience with visible rewards. 

  • You have the capacity to maintain a small product catalog and regularly refresh it. 

  • Locations have larger or more diverse audiences—corporate campuses, hospitals, universities—where shoppers respond to status and variety. 

  • You want to manage effective costs by selecting products with favorable margins. 

In practice: Enhanced Rewards feels like a "club" where shoppers progress through tiers and cash in points for items they want to try. 

 

A simple way to decide 

Still on the fence? A few quick questions can help you see which program aligns with your goals and your capacity to manage it. 

Ask yourself these five questions: 

  1. Do I want shoppers to think of this as a rebate? → Loyalty 

  2. Do I want shoppers to see a reward shelf with items they can earn? → Enhanced Rewards 

  3. Do I need per-SKU promotion tools? → Loyalty 

  4. Do I want to avoid EFT disbursement fees and keep value in inventory? → Enhanced Rewards 

  5. How much time do I have for program upkeep? → If it's minimal, choose Loyalty. If you can commit to catalog updates, choose Enhanced Rewards

     

The bottom line 

Rewards aren't one-size-fits-all. They're tools—and the value comes from how you use them. 

With 365, you don't have to lock yourself into a single approach across your entire operation. Each location can run either Loyalty or Enhanced Rewards—giving you the flexibility to align the right program with the right environment. A smaller warehouse might benefit from the predictability of Loyalty, while a bustling corporate campus thrives on the tiered engagement of Enhanced Rewards. 

Both programs are proven to increase shopper frequency and spend. The difference is in how they motivate behavior: Loyalty delivers steady, low-touch rebates while Enhanced Rewards builds status and visibility. Your role is to decide which lever will create the most value for your shoppers—and for your business. 

If you're weighing which option best fits your portfolio, 365 can help. Our team has guided operators across industries and location types, and we know how to align the right program with your goals. Reach out today to learn how Loyalty and Enhanced Rewards can strengthen shopper engagement, boost repeat visits, and maximize the return from every market you run.