FiveStars Loyalty: A Close Look
Before we examine why the Clavaa loyalty program is the best alternative to FiveStars Loyalty, let's understand what FiveStars really is and how it works for businesses.
How FiveStars Loyalty Works
FiveStars is a marketing platform that facilitates businesses in retaining customers through a points-based system. Customers enroll by entering their phone numbers at the checkpoints and are awarded points for every purchase, which can subsequently be redeemed for various rewards.
While this system has been helpful for business in getting new customers and retaining the previous ones, there are also some major drawbacks.
The Cost Structure of FiveStars Loyalty
Using FiveStars Loyalty comes with significant costs that can impact your bottom line:
FiveStars Loyalty Fee Structure
- Monthly subscription fees
Businesses have to pay an absurdly high amount of $300 per location per month
- Credit card processing fees
Standard credit card processing fees are set at 2.5%–3% per transaction
- Limited discounts
FiveStars offers discounts, but businesses can't avail them without utilizing the FiveStars payment processor
Marketing Restrictions
Beyond the high costs, FiveStars imposes significant limitations on how businesses can engage with their customers:
FiveStars Marketing Limitations
- Businesses can only send messages to customers through the FiveStars' system, not their own branded platform
- Limited control over branding and customer engagement
- Many customers have complained about receiving excessive promotional messages from FiveStars
The Shortcomings of FiveStars Loyalty
While FiveStars is a well-known loyalty program, it has drawn the ire of businesses for its cost and limitations that outweigh the benefits. The most cited cons of being a FiveStars subscriber are:
Financial Burden
Firstly, subscribers have to pay high sums in monthly fees that cut into profits. There is no way to waive off payment processing fees even if customers return frequently.
Brand Control Issues
It offers limited control to users over branding and customer engagement. Many members have also complained about receiving excessive promotional messages from FiveStars.
Are You Looking for a Better Alternative?
Are you a FiveStar user who's grown tired of the above-mentioned issues or are you simply looking for a flexible and budget-friendly loyalty offer? Clavaa is your go-to platform. In the next section, we will take a look at Clavaa and what makes it a suitable alternative.
While FiveStars Loyalty offers a structured rewards system, the combination of high subscription costs, transaction fees, and marketing limitations has led many small businesses to seek more flexible, affordable alternatives that provide greater control over their customer loyalty programs.