Are Behavior-Based Rewards Are the Future of QSR Loyalty?

QSRs can leverage the seasonal traffic surge to move past deal fatigue and retain guests into the new year by adopting personalized, behavior-based rewards.

“Holiday traffic is a stress test for your entire digital ecosystem, so your strategy needs to meet demand wherever it shows up,” explained Catherine Tabor, Founder & CEO of Sparkfly, which has created engagement and loyalty programs for brands including Chipotle, Bojangles, Denny’s, and Texas Roadhouse. “Orchestrate your offers throughout your entire platform, including web and app experiences, digital ad channels, loyalty, and wallet.”

Brands must ensure they are meeting customers where they choose to engage, Tabor stressed. Among her suggestions:

• Use first-party data to prioritize and target the highest value customers while acquisition costs dip. 

• Put the POS stack through its paces now, so holiday spikes don’t cause glitches and the checkout experience stays seamless.

Customers aren’t responding to deals the way they used to because the market is saturated with the same percentage-off offers across every channel, Tabor said. 

“Too many QSRs are competing on price instead of using data to deliver targeted, relevant promotions that feel tailored to the individual. As more chains compete on price alone, the bar for what counts as real value keeps rising while differentiation keeps shrinking. Consumers’ inboxes and phones are saturated with daily deal emails and push notifications that all offer the same things. The result is a marketplace where discounts still exist, but their power to excite, convert, or build loyalty is fading.”

With the concept of value being blurred, Tabor noted the way to reach guests is to get more personal: replace demographic guesses with actual behavior, using real purchase patterns to see what guests actually value. Then build tiered offers that treat loyal regulars differently than occasional visitors, and trigger them in real time with signals like lapsed visits, higher-value orders, or trying something new. 

“The key is continuous testing: measuring not just redemptions, but the downstream impact on repeat visits, frequency, and check growth. That’s where real return comes from.”

Why Behavior-Based Rewards Work

Brands should lean into behavior-based rewards because they incentivize the actions that actually grow the business, such as frequency, off-peak visits, trial and referrals, as opposed to just another discounted transaction, Tabor added. 

“Operators can reward guests for visiting during slower dayparts, trying a new item, maintaining a steady visit frequency, or referring a friend. That kind of program clicks with guests who want to feel seen for their loyalty, not just their money, and it builds a real emotional tie.”

Younger consumers, in particular, she said, expect brands to understand them, so rewarding the behaviors they already exhibit feels intuitive rather than gimmicky.

To turn one-time holiday-time visitors into repeat customers throughout the coming year: treat that first visit as the beginning of a relationship and capture first-party data across every touchpoint, Tabor said. 

“The holiday surge is just the starting point. The real value is turning that seasonal guest into a familiar face.”

The next best steps include:

• Run a strategic welcome journey that gradually warms them up to the brand over the course of a few touches.

• Use predictive signals to spot which holiday guests look like the best year-round regulars and focus retention efforts there. 

Avoiding Common Loyalty Missteps

Tabor cautioned against sending multiple messages from day one, and suggested not just trying to re-sell what they already purchased. Instead, use different offers to nudge them into trying more of the menu so they build new habits with the brand.

One of the most common missteps she has witnessed brands doing is launching big promotions before the operation is ready. The offer grabs attention and drives traffic, but without the right checks in place, service slows down and the guest experience suffers. 

Another mistake is treating every customer the same during peak periods instead of protecting and prioritizing their highest-value regulars. 

“Too often brands go all-in on acquisition without any real plan to turn holiday visitors into repeat guests in January. The fix is tighter, integrated offer management across your tech stack, with real-time visibility into what’s working so you can adjust seamlessly.”