He Was Already Going to Spend That Money — Why This Is the Wrong Way to Think About Loyalty Programs

One of the most common objections we hear from indoor golf facility owners goes something like this:

“If two people walk in the door, you can’t tell me one of them is worth 200% more than the other. And if a guy was already going to be a regular, why would I give him cash back? I’m just giving away money.”

On the surface, that feels logical.
But it’s also the reason many operators leave significant long-term revenue on the table.

Let’s break this down — not emotionally, not hypothetically — but structurally.

The Core Mistake: Viewing Loyalty at the Transaction Level

This objection assumes loyalty programs are about discounting a single visit.

They’re not.

Loyalty programs are about changing behavior over time.

When you look at loyalty through a single transaction — “this guy was already going to spend $100, so why give him $5 back?” — you’re asking the wrong question.

The correct question is:

What does this customer do over 6, 12, or 24 months because loyalty exists?

That’s where the difference comes from.

Why “Two Identical Customers” Don’t Exist in the Real World

The argument that “two walk-ins are worth the same” assumes all customers behave identically over time.

They don’t.

Here’s what loyalty programs actually change:

• Visit frequency – How often someone comes back
• Session length – 1 hour vs 2 hours
• Group size – Solo vs bringing friends
• Off-peak utilization – Filling dead hours
• Churn resistance – Who stops coming when life gets busy

A loyalty member doesn’t spend more because they’re inherently different.
They spend more because the system nudges them to choose you more often.

That’s the entire point.

“He Was Already Going to Be a Regular” Is an Assumption, Not a Fact

This is the most dangerous part of the objection.

Owners assume:

“This guy was already loyal.”

But loyalty isn’t a personality trait.
It’s a behavior that must be reinforced.

Without a loyalty program:
• Life happens
• Schedules change
• Another sim opens
• Golf season shifts
• Habits fade

A loyalty program doesn’t reward someone for who they are —
it rewards them for continuing the habit.

And habits decay without reinforcement.

The $5 Back Isn’t a Cost — It’s a Retention Tool

Let’s be very clear:

Giving $5 back on $100 is not a discount.
It’s store credit that must be spent with you.

That $5:
• Pulls forward the next visit
• Increases the chance of add-ons
• Keeps your facility top-of-mind
• Reduces churn without requiring staff intervention

You’re not losing $5.
You’re buying the next decision.

That’s a very different thing.

Why the 200%+ Spend Gap Exists (And Why It’s Real)

When we see loyalty members spend significantly more than non-members across facilities using Birrdi, it’s not because they magically have more money.

It’s because:
• They come back more often
• They book longer sessions
• They bring people
• They don’t disappear quietly

No single visit explains the gap.
Time does.

This is why looking at loyalty month-by-month instead of visit-by-visit is critical.

The Emotional Trap: “I’m Giving Away Money”

This objection is emotional, not financial.

It feels like giving something up.
But in reality, you’re trading a small, controlled incentive for:

• Predictability
• Repeat behavior
• Lower marketing dependence
• Higher lifetime value

Every successful loyalty system — gyms, airlines, coffee, retail — works this way for a reason.

If loyalty “gave money away,” it wouldn’t exist.

The Bottom Line

The belief that loyalty programs “reward people who were already going to come anyway” assumes the future is fixed.

It’s not.

Loyalty doesn’t reward past behavior.
It shapes future behavior.

And owners who evaluate loyalty at the transaction level will always underestimate its value — because loyalty only reveals itself over time.

Not in one visit.
Not in one customer.
But across hundreds of decisions that quietly compound.