Digital Loyalty Cards: Advantages, Tips & More

In a world where we can collect, analyze, and operationalize customer data and employee data in extremely simple ways, many businesses rely on a data-poor approach to loyalty. Many businesses today have stamp card programs, or loyalty and rewards programs that have too narrow of a focus when it comes to collecting and operationalizing customer data. In reality, there are many advantages to moving your loyalty card program to a digital-first model. Doing so can make it easier for customers to participate, while also giving you valuable insights into customer behavior. Plus, it can save you money on printing and postage costs. But how do you create a digital loyalty card program that actually works? Read on to find out.

1. Choose what gives you freedom.

When it comes to organizing digital loyalty cards, you should prioritize using a platform or software that gives you as much autonomy and control as possible. This means everything from being able to control the design and appearance of your digital loyalty cards, all the way down to being able to control the functionalities of respective cards, along with tracking transactions on both a macro and micro level.

Dealing with digital loyalty cards more often than not involves organizing accompanying rewards. Having freedom in the creation of these rewards, along with the associated redemption processes and more, means that you can create rewards that are more attractive for your customers, but also customize certain rewards. Last but not least, it also means that you can choose rewards that drive certain behaviors that your business needs - win-win!

2. Define your goals.

What do you hope to achieve with your digital loyalty card program? Do you want to increase customer retention? Drive more sales of certain products? Get feedback about your products or services? Knowing what you want to achieve will help you create a loyalty program that actually works to achieve those goals.

3. Make it easy for customers to sign up.

Don't make customers jump through hoops to sign up for your loyalty program. The easier you make it, the more likely they are to actually do it. Include a link to sign up on your website and in any email marketing campaigns you're running. You might even consider offering an incentive for signing up, such as a discount on their next purchase.

Depending on the software you choose to support your digital loyalty cards or loyalty program, you may be able to generate a customer profile that accompanies each sign-up. If you have the option to go for this, don't think twice. This allows you to start building a profile, hence a relationship, from the very beginning of your respective customer lifetimes.

4. Reward your customers well.

The name of the game when it comes to digital cards is data collection. The right software will allow you to create member accounts when you generate cards with unique identifiers. These QR code based cards allow you to use every scan as a new piece of customer data, allowing you to get a clearer picture of your customers with each picture.

Take a look at the data you've collected and see how you can operationalize it by turning customer preferences into rewards. Rewarding customers the right way and understanding what it is that makes them loyal will make sure you level up your loyalty in no time. Not only this, but tracking customer activity and spending habits will give you insights into the behaviors that are most valuable to your business, which behaviors you need to drive with rewards, and also which customers may not be worth investing in.

5. Keep track of progress.

Keeping track of the progress of your program is an ongoing task. You can make constant adjustments, but it's best to see what happens within the first 2-3 months, and then you can make informed adjustments based on the data you've collected. This means you'll be in a better position to gear your rewards towards what your customers want, which ultimately means that your program will contribute more effectively to your business goals.

You should also keep track of customer progress. In other words, how customers are progressing through your loyalty program. This will help you identify any areas where they might be getting "stuck". Once you've identified the sticking points within your customer journey, you can set up email or notification flows to ensure that you nudge customers in the right direction throughout their lifetime with you.

Conclusion: 

A digital loyalty card program can offer many benefits for both businesses and customers alike. It's a great step towards fostering customer loyalty, as it gives insights into your customer base in a way that you could never achieve with manual, paper-based processes. If you're thinking of creating such a program for your business, keep the tips above in mind to ensure you're in a position for success.