25+ essential terms for understanding customer retention, loyalty programs, and restaurant marketing.
A customer retention strategy that applies game mechanics (spin wheels, scratch cards, mystery rewards) to loyalty programs, creating engaging experiences that trigger dopamine release and increase participation.
A web-based loyalty system accessed by scanning a QR code, requiring no app download. Customers scan, enter their email, and participate instantly via mobile browser.
The percentage of customers who return to make repeat purchases over a specific time period. Calculated as: ((Customers at End - New Customers) / Customers at Start) × 100.
The percentage of issued rewards, coupons, or prizes that customers actually use. Calculated as: (Rewards Redeemed / Rewards Issued) × 100.
The percentage of customers who leave a review (typically on Google) after being prompted. Calculated as: (Reviews Left / Review Requests Sent) × 100.
The percentage of customers who provide their email address in exchange for value. Calculated as: (Emails Collected / Total Opportunities) × 100.
A theory by Hermann Ebbinghaus (1885) showing that memory decays exponentially over time without reinforcement. Within 24 hours, 70% of new information is forgotten.
A cognitive bias discovered by Daniel Kahneman showing that the pain of losing is psychologically 2x stronger than the pleasure of gaining the same thing.
A learning technique where information is reviewed at increasing intervals to combat the forgetting curve. Applying this to marketing means sending reminders at strategic times.
The neurological response triggered by unpredictable rewards, releasing dopamine (the "feel-good" neurotransmitter) in the brain. This is why games and gambling are engaging.
The desire to experience pleasure or reward immediately rather than waiting for it. In loyalty programs, this means rewarding customers on their first visit, not their 10th.
A digital game mechanic where customers spin a virtual wheel divided into segments, each containing a different prize. The wheel randomly stops on one segment, determining the reward.
A traditional loyalty program where customers earn points for purchases and redeem them for rewards after accumulating enough. Example: "Earn 1 point per dollar, redeem 100 points for $10 off."
Physical or digital cards where customers collect stamps/punches for each purchase. After collecting a set number (typically 10), they receive a free item.
The rate at which a business receives new reviews over time. Measured as reviews per week or month. Higher velocity signals to Google that a business is active and popular.
The total revenue a business can expect from a single customer account throughout their entire relationship. Calculated as: Average Order Value × Purchase Frequency × Customer Lifespan.
The percentage of customers who stop doing business with you over a given period. The opposite of retention rate. Calculated as: (Customers Lost / Total Customers) × 100.
The design principle of removing barriers to participation. Every additional step (app download, account creation, password) reduces enrollment by approximately 50%.
A time limit placed on rewards to create urgency and drive redemption. Optimal expiration window is 14 days—long enough to plan, short enough to feel urgent.
A digital card stored in Apple Wallet or Google Wallet that contains loyalty rewards, coupons, or membership information. Appears on the phone's lock screen for easy access.
The total cost to acquire one new customer. Includes advertising, discounts, and operational costs. Calculated as: Total Marketing Spend / New Customers Acquired.
The return on investment from a loyalty program. Calculated by comparing the cost of the program (software + prizes) against incremental revenue from returning customers.
SpiniX combines gamification, loss aversion, and spaced repetition into one platform.