Answers / Loyalty programs
What are the 5 stages of a loyalty redemption funnel?
Written by PEKO Team.Last updated: 05/24/2026.
Sign-up → first earn → first redemption → repeat redemption → tier graduation. Most F&B programs leak between first earn and first redemption (typically 40–55%); fixing that one transition lifts program ROI more than any acquisition spend.
Published: 05/24/2026
A loyalty program is a funnel, not a list. Five transitions matter: sign-up, first earn, first redemption, repeat redemption, and tier graduation. Each one has a different drop-off cause and a different fix.
The single most common leak is between first earn and first redemption — 40–55% of members earn points then never redeem. The cause is almost always reward visibility, not reward generosity.
Sign-up → first earn
Healthy: 70–85% complete within 14 days. Below 60%? Sign-up reward and first earn aren't on the same receipt.
First earn → first redemption
Healthy: 45–60%. The fix: a 'you have X points, redeem at the counter' nudge on receipts and in Zalo OA. Visibility, not amount.
First → repeat redemption
Healthy: 55–70%. The redemption experience must be frictionless. A confusing redemption kills the next one.
Repeat → tier graduation
Healthy: 18–28%. Show progress visually ('2 more visits to Gold') in the member app.
FAQ
How does PEKO surface this funnel?
The redemption funnel dashboard renders all 5 stages with cohort-level drop-off, lets you filter by tier and acquisition channel, and highlights the single biggest leak so you know where to intervene first.
Related
People also read
Answer
What is the formula for customer lifetime value (CLV) in F&B?
CLV = average ticket × visits per year × expected years retained, minus the cost of serving that guest. For an independent café, a Gold-tier member is typically worth $180–$320 over 18 months.
Answer
Booksy vs Fresha for Vietnam salons — which booking platform?
Booksy has stronger directory discovery in some markets; Fresha has stronger product breadth and free pricing. Both lack deep Vietnam-specific retention — pair whichever you choose with a local loyalty layer like PEKO for Zalo OA reach.
Answer
Booksy vs Vagaro for barbershops?
Booksy is barbershop-native with strong directory traffic; Vagaro is broader beauty + fitness. For Vietnam barbershops, both work as the calendar — and both need a loyalty layer for the Vietnam-specific rebook + Zalo OA work.