Punchh Offers and Program Types

At Punchh, offers is the umbrella term for all types of loyalty "goodies" offered to guests, such as a coupon, a reward that is unlocked at a set number of points, the completion of a visit-based card, the result of a loyalty campaign, etc.

The basic building block for an offer is the redeemable. A redeemable allows you to specify the real-world benefit to the user, whether in the form of a free item, a discount or promotional price, BOGO, Buy X Get Y, etc. Redeemables are configured within the Punchh platform and are available across your entire business.

All offer types at Punchh are based on redeemables. For example, a reward is a redeemable that has been gifted to a specific guest's account through a campaign, support gifting, or through a specific program type. Another example: A deal is a redeemable that has been offered to a guest through a specific distribution method, in this case, by allowing guests to save the redeemable through the mobile app. These redeemable variations have their own names (such as "reward" or "deal") to make it easy to refer to their specific characteristics or distribution methods. Ultimately, all offer types build off the redeemables you configure for your business, and are just ways to put those redeemables into action.

Offer Types

Offer Type	Description
Redeemable	The basic building block for an offer. Redeemables provide several ways to benefit a guest, such as through a discount, a promotional price, a percentage off, a free item, a BOGO, a Buy X Get Y, and other mechanisms. Redeemables are configured within the Punchh platform at the business level. Guests can use redeemables directly in the Points Unlock Redeemables program type, wherein a guest chooses which redeemable to unlock by spending points earned through prior loyalty check-ins. The other Punchh offer types are based on redeemables, but go by their own names to make it easier to refer to their specific characteristics or distribution methods.
Base Redeemable	The base redeemable is the redeemable selected as the default for your program type to provide to guests when they complete a certain number of visits or reach a point threshold, assuming no other redeemable has been specified for the goal. The base redeemable is important for Visit-based and Points Unlock Redeemables program types.
Reward	An instance of a redeemable unique to a guest account. Rewards are provided to guests through campaigns, support gifting, or through the Points Convert to Rewards program type, wherein rewards are automatically applied to a guest account when the guest reaches a certain point threshold. For example, if you configure a redeemable that provides 20% off an entree, and then create a campaign that provides this redeemable to guests who have not visited your business in more than two weeks, then a reward based on the redeemable becomes available within these particular guest accounts once your campaign becomes active.
Banked reward	Same as a reward, but refers specifically to rewards that have been automatically applied to a guest account when the guest reaches a certain point threshold through the Points Convert to Rewards program type.
Banked currency	Currency that a guest can apply toward a check. Banked rewards are available only for the Points Convert to Currency program type, wherein guests accumulate points that convert to dollar amounts for future redemption. The guest can accumulate currency over time. For example, if 10 points convert to $1, the guest can accumulate more than 10 points before deciding to use the banked currency. If a guest has 20 points, the guest would have $2 to spend, 30 points would provide $3, 40 points would provide $4, and so on.
Deal	A deal is a redeemable that is distributed to guests through the mobile app. Deals display to guests who belong to a targeted segment on the mobile app, and the guest must opt in by "saving" the deal to the guest account. Once this happens, the redeemable becomes a reward available in the guest account. Deals must be configured through the API.
Redeemable card	A virtual representation of a collection of guest visits. Redeemable cards convert to a reward when the required number of guest visits is reached. Only available for the Visit-based program type.
Fuel discount	A type of redeemable that discounts the price of gas at fuel stations. Fuel discounts can be accumulated. For example, if 50 points earns guests a 10 cent discount on the price of gas, then 100 points would earn guests a 20 cent discount. Fuel discounts are available when specially configured by Punchh for your program type.
Rate rollback	A variation of the fuel discount available for all program types. Rate rollbacks are set within the qualifying criteria (QC) of a redeemable. Rate rollbacks cannot be accumulated like fuel discounts can be. For example, if 50 points earn a guest a 10 cent discount on the price of gas, then 100 points continue to limit the guest to a 10 cent discount.
Coupon	Pre-generated or dynamically generated alphanumeric single-use codes intended to be unique for each guest. Coupons are typically gifted to guests through campaigns. If a coupon is configured for use directly at the POS, then it provides a flat discount or percentage off based on the coupon configuration. If the coupon is meant for use on the mobile app, then it converts to a reward on the guest account.
Promo	Similar to coupons, but promos are alphanumeric "vanity" codes intended to be used by multiple guests (unlike coupons, which are single-use codes). Promos are configured by a Punchh user so that they are easy to remember and self-descriptive, such as WELCOME5, whereas coupons are random system-generated codes. Promos are typically sent to guests via electronic or print messages and are not tied to a specific guest account when redeemed.
Derived rewards	A flexible reward type that allows you to gift guests with different redeemables based on specific conditions. There are two types of derived rewards: surprise sets and conditional gifting. Surprise sets let you choose redeemables and the percentage of guests who should receive the redeemables as rewards. For example, if you have 100,000 guests in a particular segment, you could use a surprise set derived reward to gift 70% of the segment guests with a free burger and 30% of the segment guests with a free side order (e.g., fries). When you attach the derived reward to a campaign, Punchh will randomly provide 70,000 of the guests with a free burger and 30,000 of the guests with a free side order. This derived reward is meant to surprise and delight guests. Conditional gifting allows you to provide different rewards to guests based on specific criteria. For example, you could run a post check-in campaign that gifts Redeemable A to guests who spent $10-20 on the check, Redeemable B to guests who spent $20-30 on the check, and Redeemable C to guests who spent more than $30 on the check.
Subscriptions	Subscriptions is an add-on Punchh loyalty product that allows businesses to create subscription plans to generate up-front revenue and offers benefits in addition to the standard benefits that unsubscribed members of the loyalty program receive. Guests can purchase one or more subscriptions. No points are deducted for these benefits. For example, a subscriber gets a free small coffee or tea once per day for 30 days with a minimum purchase amount of $25 to qualify. Punchh allows businesses to create subscription plans and define discounting rules. Discounting rules determine the benefits available to subscribers. Some examples of benefits are: 1) Menu item prices can be reduced by a specific amount. For instance, a large pizza priced at $14.99 can be discounted by $2, making the final price $12.99, 2) Menu items or receipts can be discounted by a percentage or a flat dollar amount. For instance, a burger’s price can be discounted by 10%, or $5.00 off delivery orders over $25 in a 6-month period, eligible once per receipt, once per day.

Program Types

The program type of your business determines the basic mechanism for how guests earn loyalty points through Punchh and how those points convert to offers.

Guests earn points whenever they check in to your business by completing a transaction. This is true for all program types. What changes is how those points translate to offers. For example, do the points earned by guests allow unlocking rewards at different point thresholds, or do the points convert to specific dollar amounts that can be applied to future transactions? The answer to this type of question depends on the Punchh program type your business has selected.

Program Type	Description	Offers Available
Points Unlock Redeemables	Guests choose which redeemables to spend their points on. For example, your business may provide three redeemables: one at 30 points, one at 50 points, and one at 100 points. The guest accumulates points at each check-in and chooses when and how to spend those points to unlock specific redeemables. When a guest unlocks a redeemable, the points are deducted from the guest's account.	Redeemables / Rewards / Deals / Coupons / Promos / Fuel discount as rate rollback QC / Derived rewards
Points Convert to Rewards	Guests automatically unlock rewards at predefined point thresholds. For example, your business may provide three reward thresholds: one at 30 points, one at 50 points, and one at 100 points. When a guest reaches 30 points, the first reward is offered to the guest automatically. The points do not deduct, and when the guest reaches 50 points, the next reward is made available to the guest, and so on.	Rewards / Banked rewards / Deals / Coupons / Promos / Fuel discount as rate rollback QC / Derived rewards
Points Convert to Currency	Guest points are converted to a currency value on the guest account. For example, every 10 points earned by the guest might translate into $1 worth of banked currency. The guest continues to earn more currency as the guest earns more points, and can choose when and how much banked currency to spend during any given transaction.	Banked currency / Rewards / Deals / Coupons / Promos / Fuel discount as rate rollback QC / Derived rewards
Visit-based	Guest points are based on the number of visits. A certain number of visits earns the guest a redeemable card, which represents a redeemable that your business has configured.	Redeemable card redemption / Rewards / Deals / Coupons / Promos / Fuel discount as rate rollback QC / Derived rewards