Revenue first. Redemption later.
The funding model behind a Lovalty Perk is closer to a Stripe subscription than a Groupon voucher. Customers pre-pay, you book the cash, and the obligation amortises over weeks of repeat visits.
The Funding Flow
Four steps from sale to settled cash.
Every Perk follows the same lifecycle. The dashboard shows you exactly where each one sits — sold, partially redeemed, fully redeemed, or expired.
Customer pre-pays
A regular taps to buy a five-coffee Perk in the app. The full bundle price clears as a single charge against their card, wallet, or Lovalty balance — and credits to your Lovalty merchant account in seconds.
You book the revenue
The sale is recognised against your account immediately. The redemption obligation sits on a separate line — visible in your dashboard, attributable per Perk, per customer, per location — so your books always reflect reality.
Redemptions amortise over time
Every time the customer walks in and scans, one unit is consumed and the obligation is drawn down by the unit value. The pace of redemption is the pace of your revenue recognition — and we report on both in real time.
Float compounds
Healthy Perk programs operate with positive float at all times. Customers buy faster than they redeem; new buyers arrive while existing ones are mid-bundle. The result: working capital you can actually plan around.
Designing a profitable Perk
Price for the regular, not the bargain-hunter.
The best Perks aren’t aggressive discounts. They’re modest savings that reward true loyalty — typically 10–15% off door price for a five-to-ten unit bundle that’s valid for two-to-three months.
We give you a Perk Designer that runs the numbers live: unit economics, gross margin per redemption, breakeven sell-through, float position at month one and month three. Move a slider, see the impact, publish when it works.
Guardrails, not handcuffs
Built-in protections for you and your customer.
Expiry windows, redemption caps, and per-customer purchase limits are all configurable. Unredeemed value at expiry is yours to keep — but Lovalty will nudge the customer to come use what they’ve paid for first, every time.
We hold a small reserve against extreme refund scenarios — sized transparently in your dashboard, never a surprise — and we shoulder dispute and chargeback liability on the customer side. Your job is to make the coffee. Ours is to make the funding flow boringly predictable.
Ready to model a bundle?
See the funding math for your own shop.
Send us your average ticket and your busiest hour and we’ll build a sample Perk plus a 90-day float projection — on a 20-minute call.
Funding FAQ