Understanding Digital Loyalty Cards

Loyalty programs and their associated loyalty cards have long been the cornerstone of customer engagement between consumers and merchants. The typical trade-off has always been clear: in exchange for the rewards offered by loyalty cards, consumers willingly provide access to their data and, notably, grant permission for communication.

But do loyalty cards really make a difference? Survey results show that a whopping 80% of shoppers tend to spend more with businesses that offer them loyalty cards. This spells a win-win scenario for both businesses and consumers.

However, in the ever-evolving world of technology, the next generation of mobile and app-based loyalty cards holds even more power than their traditional plastic counterparts. These digital cards, thanks to the fusion of transactional data and a diverse array of mobile communication channels, including push notifications, SMS, and email, are capable of extending their reach and relevance to an unprecedented extent.

With the ease of customer profiling and the potential for crafting tailored, meaningful campaigns based on these profiles, merchants can push the boundaries further to boost sales and foot traffic.

The transition to digital loyalty cards is underway, and the advantages for businesses and consumers alike are substantial.