Answers / Loyalty programs
What are the 5 stages of a loyalty redemption funnel?
Written by PEKO Team.Last updated: 05/24/2026.
Updated May 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
Quick facts
- Answer
- 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.
- Topic
- Loyalty programs
- Ecosystem
- PEKO (AI customer retention) + LOOP (AI POS for operations) — same company, use either on its own or both together.
- Updated
- 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.
The PEKO ecosystem
PEKO and LOOP are two products from the same company. PEKO is the AI retention layer and runs alongside the POS you already use. LOOP is the AI-native POS that covers operations: recipe-level inventory, staff shifts, table plans and the kitchen display. Each works on its own, and run together they share one dataset, so nothing has to be entered twice. See PEKO + LOOP in one ecosystem
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