Why Most Customer Loyalty Programs for Small Business Fail (And What to Do Instead)

November 08, 2025
Topics: Massage Spa
Written by: Keilani

Punch Cards Are Dead—Here’s What’s Replacing Them (And Printing Monthly Revenue) ➡️

You know the ones.

“Buy 9, get the 10th free!”
“We appreciate your loyalty. Here’s a 10% off coupon… once a year.”
Random points system no one remembers.

Welcome to the junk drawer of customer loyalty programs for small businesses. ️

Let’s be real — most loyalty programs are designed to look like they’re rewarding customers but end up being glorified gimmicks. They’re hard to track, easy to forget, and they don’t build real loyalty.

Wanna know what does?

Membership.

Not Netflix-style streaming — we’re talking real, money-generating, loyalty-boosting, treatment-driving memberships that stack monthly recurring revenue (MRR) like LEGOs.


How One Practice Went From Loyalty “Coupons” to $104K in ARR With BoomCloud™

Meet Dr. J. — a dentist from Idaho with a heart of gold and a filing cabinet full of punch cards that nobody cared about. He had 2,300 patients in his system… and maybe 200 who came in regularly. Most of them were insurance-dependent or ghosted after their cleaning.

He wanted loyalty, not visits by obligation.

He was tired of:

  • Competing on price

  • Discounting treatments

  • Insurance companies dictating care

That’s when he discovered BoomCloud™.

He launched a membership program — $35/month for 2 cleanings, discounts on procedures, and no insurance headaches.

Then came the marketing flip.

He didn’t advertise “dental care.”
He promoted a health club for your mouth.

He posted fun memes, ran simple email campaigns, and trained his team to say:

“Want to save on your cleanings and never deal with insurance again?”

BOOM

Fast forward 11 months:

  • 248 members

  • $8,680 in MRR

  • $104,160 in ARR

  • 3.4X average spend per patient

  • 0% insurance drama

He didn’t get “more” patients. He got better, more profitable ones. All from flipping his loyalty program into a membership plan that actually mattered.


Build Loyalty That Pays You Monthly (And Makes Customers Feel Like VIPs)

Let’s rip the band-aid off:

Most customer loyalty programs for small businesses are afterthoughts. They’re built for transactions, not transformation. But people don’t want more stuff. They want status, ease, and exclusivity.

Here’s what a membership plan does better than your dusty old punch cards:

What Memberships Do Better:

  • ✅ Create predictable revenue via MRR

  • ✅ Drive 2X–4X higher spend per customer

  • ✅ Keep your clients coming back without chasing them

  • ✅ Reward behavior that boosts your bottom line

  • ✅ Make YOU their go-to (not the cheapest option)

BoomCloud™ makes it ridiculously easy to build, sell, and scale a membership plan. You don’t need to be tech-savvy or hire a marketing guru.

Just plug it in, and BoomCloud™ gives you:

  • ️ Plan templates

  • Billing automation

  • Analytics & dashboards

  • Marketing tools

  • Reporting on MRR, ARR, churn & more

And best of all… your revenue becomes predictable. That’s a power most small businesses never touch.


DATA: The Math Behind Why Membership > Loyalty Discounts

Let’s do some juicy math.

Non-member customer:
$600/year average spend
Visit once or twice, maybe refer a friend

Member customer:
$1,200–$2,400/year average spend
Visit 3–4× more often
82% more likely to accept offers
Refers 2–3 more people (because status = shareworthy)

Even if you charge $30/month, that’s $360/year upfront cash flow. Before they even spend on extras.

Add 100 members → $3,000/month = $36,000/year
Add 300 members → $9,000/month = $108,000/year

And you didn’t spend a dime chasing new leads.


You Don’t Need More Customers—You Need More Value per Customer

This is what we call the membership moment.

It’s when you realize you’ve been stuck on the customer hamster wheel — always chasing more. More ads. More discounts. More promos.

But revenue growth isn’t about more customers — it’s about more per customer.

With BoomCloud™, you’re not building a loyalty gimmick. You’re building a subscription economy inside your biz.

And subscriptions = wealth.


TACTICAL TAKEAWAYS: How to Start a Killer Membership Program Today

Here’s how you launch like a pro:

Step 1: Build a Plan on BoomCloud™

  • Pick 2–3 offers your clients love

  • Price it to deliver value and profit

  • Name it like a club (not a chore)

Example: “Smile Squad,” “Wellness Club,” “VIP Pet Parents Plan”

Step 2: Promote Like a Rockstar

  • Post memes with value-packed CTAs

  • Send emails like: “Ditch insurance. Join the club.”

  • Use front-desk scripts like:
    “Wanna save 20% on treatments and join our VIP program?”

Step 3: Track MRR & Scale It

  • Use BoomCloud™ dashboards

  • Set monthly membership goals

  • Celebrate growth with your team


Loyalty Doesn’t Come From Punch Cards — It Comes From Belonging

It’s not about “buy 10, get 1 free.”

It’s about creating a customer experience where people feel seen, valued, and rewarded for sticking around.

Membership does what traditional loyalty programs can’t:

  • Creates monthly income

  • Deepens relationships

  • Increases revenue per customer

  • Boosts retention without heavy lifting

If you’re serious about growing your small business, then it’s time to ditch outdated loyalty schemes and start building monthly membership income like the pros.

And there’s only one tool you need to do it right: BoomCloud™.


BONUS RESOURCES

My Top Podcasts

How Smart Practice Owners Attract, Retain & Create Recurring Revenue

Get the book that’s helping over 65,000  practices ditch insurance, boost cash flow, and create financial freedom with a patient membership program.

Membership Plans For Optometrists

vision-membership-plan-ebook Creating a patient membership plan is the smartest strategy to implement in your practice. You will increase patient satisfaction & loyalty, Increase predictable recurring revenue & increase sales!

Fire The PPOs!

Say goodbye to PPOs and hello to a thriving, independent dental practice. Don’t miss out – your journey to financial freedom starts here!

Subscribe to Our Podcasts!

Jordon Comstock

Author Bio

Jordon Comstock is the Founder & CEO of BoomCloud™, a software that allows practice, clinic & spa owners to build, manage and scale a membership program. This helps practice & clinic owners to create recurring revenue & improve loyalty via membership programs. Jordon is passionate about Music, Hawaii, Healthcare businesses like: dentistry, optometry, med spas and massage spas. Schedule a demo of BoomCloud™ and learn how membership programs can improve your business. Here are more dental books to improve your practice

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