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Managing Customer Rewards

5 min read

A good rewards program does more than give stuff away — it gives people a reason to come back to your shop instead of the one down the street. TORO gives you several tools to make that happen, and the best part is they all work together without you having to think about it too much.

Here’s a quick tour of what’s in your toolbox.

Loyalty Points #

This is your bread and butter. Customers earn points on every purchase — typically 1 point per dollar spent, though you can configure this differently. Points accumulate automatically whenever a customer is attached to a transaction.

When they’ve built up enough, they can redeem points for discounts or free items right at the register. You can see any customer’s current point balance on their account screen, and so can your staff — which makes it easy to mention during checkout. “Hey, you’ve got 500 points — want to use some today?” That kind of thing builds goodwill.

Punchcards #

Think of these as the digital version of those old paper “buy 10, get 1 free” cards — except nobody loses them in the washing machine. Punchcards are perfect for specific product categories. Buy 10 cigars from a particular line, get the 11th free. Buy 5 drinks, get one on the house.

Progress is tracked automatically, and you can run multiple punchcard programs at the same time without any conflicts. When a customer is attached to a transaction, they’ll see exactly where they stand — “3 more to go!” It’s a small thing, but it keeps people engaged.

Birthday and Anniversary Rewards #

Nothing makes a customer feel like more than a number than remembering their birthday. TORO automatically generates rewards based on the dates stored in a customer’s profile — birthdays, anniversaries, whatever you’ve set up.

Even better, TORO can send automatic notifications via SMS or email when a birthday is approaching. It’s the kind of personal touch that turns casual buyers into regulars.

Coupons #

Coupons in TORO are tied to specific customer accounts, which means they’re targeted and trackable. You can create one-time or limited-use discounts for individual customers or groups.

They’re great for win-back campaigns when someone hasn’t visited in a while, seasonal promotions, or just saying thanks to a loyal customer. Since they’re tracked by phone number, you don’t have to worry about someone using the same coupon five times.

Coupon Code Formats #

Every coupon gets a unique code — the thing customers type in or that gets printed on their receipt. You get to pick the style. Go to Admin Tools > Customer Management > Setup Rewards Program, and you’ll see the Coupon Code Format dropdown on the right side of the screen. Three options:

  • Word + Numbers — a random word followed by three digits, like PIE713 or BULK205. This is the default and what most stores have been using. Easy to read, easy to say over the phone.
  • All Numbers — a six-digit code split by a dash, like 847-291. Feels more “official” and corporate. Some stores prefer this if they want their coupons to look less playful.
  • Two Words — two random words joined by a dash, like PIE-SKY or EMU-COUP. This is the OG format from way back in the early days of the system. It’s fun, it’s memorable, and yes — with 427 words in the mix, you might occasionally get a combination that raises an eyebrow. Some stores consider that a feature, not a bug.

Changing the format only affects new coupon codes going forward. Any existing coupons keep whatever code they already have.

The Coupon Word List #

The words used for coupon codes come from a customizable list. From that same Rewards Program screen, tap Setup Coupon Word List to see all the words, add new ones, or remove any that don’t fit your shop’s vibe. The system ships with about 427 words that have been scrubbed for anything too offensive, but every shop is different. Make the list yours.

Automatic Cleanup #

TORO quietly retires old coupon codes in the background. On the first of each month, any coupon that’s been expired for over a year gets its code freed up so it can be reused. You don’t need to do anything — the system handles it. This keeps the pool of available codes fresh, especially important if you’re using the two-word format where the combo count is smaller.

Membership Levels #

For your best customers, membership tiers add another layer. You define the tier names and benefits — whatever structure makes sense for your business. Each tier can have its own pricing discounts and perks.

Tiers are assigned manually when you set up a membership, so you control who gets what level. It’s up to you how exclusive you want to make it.

How It All Fits Together #

Think of it as layers. Points provide the baseline that keeps everyone engaged. Punchcards layer on top for specific product categories you want to push. Membership levels reward your best customers with something extra. Birthday rewards strengthen personal relationships. And coupons are your targeted tools for specific situations.

You don’t have to launch everything at once. Start with points, get your staff comfortable with it, then add punchcards or tiers when you’re ready.

The One Thing You Can’t Forget #

Here’s the most important thing in this entire article: rewards only work when the customer is attached to the transaction. If your staff forgets to look up the customer before ringing them up, that customer earns nothing. No points, no punchcard progress, no birthday coupon applied.

Train your team to ask every single time. “Can I look up your account?” should be as automatic as “Would you like a bag?” It takes two seconds and it’s the difference between a rewards program that works and one that frustrates your customers.