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SmallBiz Research
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By Jamie ReynoldsSmall Business Analyst
March 2025
Small Business Loyalty Solutions

Clavaa vs FiveStars Loyalty Program: The Best FiveStars Alternative

This article will analyze how Clavaa compares to FiveStars and why it is a far better option for businesses looking for a FiveStars Loyalty alternative.

Processing Fees
0%
With Clavaa
Subscription
Low Cost
Flexible options
Rewards
Instant
Cashback rewards
Customer Retention
Improved
Higher engagement

FiveStars Loyalty is an option that has been tried and tested by business owners for boosting customer loyalty. While it has been a go-to solution for many small businesses, its high subscription fees, transaction costs, and stringent terms and conditions may leave no other option but for subscribers to press the unsubscribe button and look for an affordable provider.

That is where the Clavaa loyalty program becomes the knight in shining armor. Instead of offering the traditional points-based methods and dealing with third-party payment processors, Clavaa combines payments and rewards into an easy interaction. With no payment processing fees, instant cashback rewards, and marketing tools, it helps businesses improve customer retention while keeping more of their revenue.

This article will analyze how Clavaa compares to FiveStars and why it is a far better option for businesses looking for a FiveStars Loyalty alternative. So, let's get to it.

How To Use This Comparison

Navigate to specific sections using the table of contents below, or read through the full guide to understand FiveStars and how Clavaa Compares.

POS system with loyalty program interface
Detailed Comparison
Clavaa vs FiveStars Loyalty
A better alternative for your business
Research Methodology
We've analyzed both platforms' official documentation and gathered feedback from business owners who have used these services to provide the best most comprehensive comparison.

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.

Clavaa - The Game Changing Platform For Improving Customer Retention

Clavaa is an advanced customer loyalty and payment platform that facilitates businesses to build better customer relationships. Unlike traditional rewards programs that are detached from payment systems, Clavaa integrates both, streamlining direct contribution to customer engagement and retention with every transaction.

A Digital-First Solution

Catering to both business and consumers, Clavaa offers a digital-first solution to loyalty programs for simplifying their operations. There are no outdated punch cards and manual tracking, making the process effortless for merchants and customers alike.

For Businesses of All Sizes

From local retailers to scaling brands, Clavaa caters to all various sectors with a system that adjusts to changing customer demands.

Beyond Traditional Rewards

Fundamentally, Clavaa is not just a rewards program, but an advancement in the paradigm. Clavaa focuses on ease of use in a way that is rewarding and feels natural in a modern digitally-focused world by creating and nurturing relationships with customers, prioritizing engagement and retaining clients for the long-term.

What Makes Clavaa Stand Out from Other FiveStars Loyalty Programs

Designed to outperform FiveStars in any aspect of customer retention, Clavaa is a cost-effective fully customizable loyalty and payment solution that tackles the most challenging problems businesses (especially FiveStars customers) face. Here's how Clavaa shines with its business model:

Higher Returns With Zero Payment Processing Fees

One of the hidden costs of FiveStar's services is the fee associated with credit card payments, which can average around 2.5%–3% per transaction. Clavaa charges no fees whatsoever.

Clavaa uses its integrated digital wallet that allows customers to make payments through the app. As a result, every payment processed through Clavaa is fee-free which allows businesses to retain a significant portion of their revenue.

For instance, A business that processes $20,000 worth of transactions per month, stands to save around $500-$600 per month in processing fees alone when switching to Clavaa.

Rewards Are Paid Out Instantly as Cash Instead Of Points

FiveStars employs a traditional approach where points are earned progressively and customers are rewarded only when reaching a sufficient point threshold. With Clavaa, rewards are paid out instantly as cash. This approach works wonders in promoting engagement and repeat visits.

This way, customers are more motivated by instant gratification rather than earning points toward future rewards. Clavaa rewards customers with instant cashback for every purchase made. The amount is deposited into their Clavaa balance and can be used in future transactions.

Clients Dictate Loyalty and Branding

Clavaa provides greater flexibility to businesses over FiveStars with branding and engagement as compared to customer engagement-limiting FiveStars.

It stands out for allowing customers to adjust their loyalty tiers (Silver, Gold, Platinum, etc.). Clavaa allows for direct brand interaction with the customer, engaging with the business instead of a third-party system. The platform allows firms to update their products and promotions to clients by purchasers without third-party restrictions.

Marketing Tools Included

An attractive feature of Clavaa is that it allows subscribers to use their marketing tools without any extra cost. The marketing tools include tailored promotional services in which subscribers can send personalized offers through promotional SMS and push notifications. They can also tap into disgruntled customers with enticing offers to regain their previous clientele.

Business can monitor customer engagement, spending, and other activities in real-time analytics as well.

Sole proprietorships and small business owners have praised Clavaa in being an all-in-one solution that builds an environment of trust, with their flexible payment systems and cutting-edge marketing tools.

No Phone Numbers Required

FiveStars' loyalty program requires customers to input their phone numbers to earn points, which can be frustrating and time-consuming when completing a purchase.

Clavaa solves these problems, making customers' experience smoother. Clavaa deals things differently. The rewards and perks are credited directly to the app, so clients don't have to worry about missing out on rewards if they don't remember the phone number. Moreover, the perks appear instantly when earned on the Clavaa app.

It is a more modern take on a digital wallet and it engages customers and encourages them to earn and redeem their rewards.

Why Clavaa Is A Winner

Clavaa was designed as a solution to Square Loyalty's shortcomings, making it a reliable loyalty platform that businesses can afford. Clavaa outperforms Square Loyalty in the following aspects:

Boosting Savings With No Payment Processing Fees

Square Loyalty has been criticized for charging clients with a hidden card processing fee which usually sits at 2.6% per transaction. Clavaa tackles the issue with the use of traditional card networks to process payments through its integrated digital wallet.

The payments made through Clavaa are free of servicing charges. This means businesses retain greater portions of their revenues. For example, if your business processes $20,000 in monthly transactions, businesses can save around $520-$600 per month just by switching to Clavaa.

$0
Transaction Fee

Unlike Square's 2.6% fee, Clavaa's payment processing is completely free, allowing businesses to keep more of their revenue.

Earn Instant Cash Back Rewards Instead Of Points

Square Loyalty works with a good old points system, which tends to slow things down for customers. Clavaa, on the other hand, offers instant cash back rewards, This has proven time and again to draw higher engagement numbers and repeat visits.

Studies show that customers prefer long-term rewards over points. With Clavaa, every single time a customer buys something, they get instant cash rewards on their Clavaa account. The rewards can be used for purchases later.

Customized Loyalty Tiers of Your Choice

Clavaa goes a step beyond Square Loyalty's basic point systems by allowing businesses to be in full control of their customized loyalty programs.

With Clavaa, customers can create tiered VIP programs, e.g. Silver, Gold, and Platinum. The higher the tier, the higher the rewards. It also offers referral bonus rewards, entry to special events, and holiday bonuses. Also, subscribers can run targeted promotions using Clavaa's built-in marketing tools.

Advanced Automation Marketing Within The System

Square Loyalty does not offer comprehensive marketing tools, requiring clients to purchase Square Marketing for this purpose.

Clavaa is a one-stop solution through which businesses receive loyalty, allow for payment processing, and provide marketing tools for branding - all within a single platform. This means subscribers can benefit from:

  • Tailored advertising through emails and app notifications
  • Special offers for dormant customers
  • Analyze customer spending in real-time

With Clavaa's assistance, businesses don't have to go looking for multiple tools to get their tasks done. It's loyalty, payments, and marketing under one roof.

Boosting Customer Satisfaction The Easy Way

Square Loyalty requires customers to input their phone number at checkout to earn points. Clavaa makes this easier by allowing customers to pay through the app and the rewards are credited into the app.

This means that issues like missing out on rewards or forgetting important numbers are a thing of the past. Clavaa saves the hassle of carrying a physical punch card. Instead, all perks are credited within the app, providing the customers with immediate access to their account and earned rewards.

This type of digital wallet experience enhances the entire customer experience with more Starbucks-like features.

Zero Fees
Save up to $600/month on transaction fees
Instant Rewards
Immediate cashback on every purchase
All-in-One Platform
Loyalty, payments & marketing tools

Side By Side Comparison of Clavaa and FiveStars Loyalty Programs

You can get a better understanding as to why Clavaa outperforms FiveStars loyalty program when it comes to customer retention.

FeatureFiveStars LoyaltyClavaa
Loyalty StructurePoints-based systemInstant cashback rewards
Transaction Fees~2.5%–3% per transaction0% – No payment processing fees
Monthly Costs~$300 per locationFree or low-cost ($25–$45 for premium features)
Marketing FeaturesLimited (FiveStars-controlled messaging)Built-in email, push notifications, and analytics
Ease of UsePhone number entry required at checkoutSeamless app-based payment + rewards
Custom BrandingLimited (FiveStars branding)Personalized loyalty tiers & branding
Customer RetentionGoodExcellent (higher engagement via instant rewards)

Final Thoughts

If you're looking for a FiveStars alternative that provides you more control, offers better rewards, then Clavaa is the right pick. With their service, businesses can save more with 0% transaction fees. They can boost customer retention numbers through instant cashback rewards and have full control over their customer loyalty program and branding.

Clavaa offers a seamless payment and rewards experience with Clavaa with its dynamic. Teaming with the intuitive platform is a free of cost process. It is the partner-to-be for those who grow customer loyalty without having to break the bank.

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