Benefits of Digital Loyalty Cards

    As a business owner, you want to look for effective ways to attract new customers and increase your sales. You may need to offer promotions and incentives to do that.

    An effective way to enjoy more benefits is by offering a digital loyalty card to customers. It can do everything, from retaining customers to increasing your reach.

    Loyalty programs already existed even during the 18th century. Merchants gave their customers copper tokens to redeem discounts when they purchase something from them in the future. Since then, loyalty programs have played a huge part in connecting to customers. The concept behind it remained until the present century.

    The digital loyalty program’s arrival introduced a new personalized customer experiences era that revolutionized and boosted brand loyalty. Plus, the mobile loyalty apps’ emergence has further improved the customer experiences and offers limitless functionalities to brands.

    Since you want to pamper your customers as much as you can, offering them a digital loyalty card to collect points and get something in exchange is a smart move. That is your way to encourage them to purchase again while thanking them. So, there is no way for you not to offer them digital loyalty punch cards.

    Below are some of the many benefits of digital loyalty cards:

    1. Protection Against Fraud 

    Paper loyalty cards involve points that are easy to collect. As a result, card users are at risk of fraud. For example, an employee can give their family and friends some extra stamps. Plus, any dishonest customer can effortlessly imitate the scribble.

    However, if you use digital loyalty cards, fraud incidents are easy to avoid. Once your customers scan their cards, that is the only time the points are assigned. Since every action is being registered, discovering any abnormal number of scans is a lot easier.

    1. Send E-mails 

    With digital loyalty cards, you can get your customers’ e-mail addresses. This means that you can inform them about any actions through e-mails. With traditional loyalty cards, you need to ask your customers’ addresses with pen and paper. After that, you need to enter them into the list and copy them into the e-mail program.

    If you choose digital loyalty cards over paper ones, the e-mail addresses are directly included in the customer base. All you have to do is to send a message in just a few clicks. You can also personalize the message for a group or an individual customer.

    1. Saving Statistics 

    After a paper loyalty card is submitted, gifts are then issues. However, you have no idea how much exactly and to whom. While you can keep some registrations, it’s a time-consuming task.

    However, if you switch to digital loyalty cards, the job is done automatically. It will tell you which customers come to purchase often and which point collection actions are successful. Plus, the software will register which reward is earned by a specific customer.

    1. Personalized Service 

    Most customers bring their smartphones with them all day. Once they give their e-mail addresses or phone numbers upon signing the app, you a great chance to connect with them directly. In fact, you can offer more personalized customer experiences with your brand.

    You can send the new members a welcome e-mail that introduces them to the exclusive VIP club. You can also send them codes during their birthdays that they can use to redeem free gifts in-store or directly speak to them using their first name. These small gestures can provide a special experience with the brand.

    1. Tailored Rewards 

    Determining what your customers are buying and how much they spend is essential when digitizing your reward programs. You also need to figure out how often they make purchases.

    Once you determine these things, you can start tailoring your offers that appeal most to them and meet their specific needs. Plus, your other regular customers who buy your items consistently can enjoy free shipping if they make a purchase before Friday.

    1. Ease of Use and Convenience 

    According to the CodeBroker survey conducted in 2018, roughly 97% of millennials agreed that they had actively engaged with various loyalty programs if they can access any reward information directly on smartphones.

    Beware that millennials have more spending power than other generations. That is why meeting their expectations and needs is advantageous.

    Additionally, almost everyone uses smartphones for just about everything; it makes sense to see loyalty programs evolve as highly interactive mobile apps.

    1. Spontaneous Rewards

    Digital loyalty programs can also include extra features called “birthday club.”This feature allows the members to get a discounted or free product on their birthday. That way, you can make them appreciated and essential.

    You can also include some side promotions like “scratch and win.” Your customer can scratch their fingers over the smartphone screens, and then instant prizes are revealed. This promotion offers a bit of fun to the program while keeping your customers entertained and engaged.

    An entry into a draw to win something, a discount, or a free coffee, and other small tokens of gratitude are enough to keep your customers on their toes and excite them.

    1. Direct Communication 

    Lines of communication between your brand and your customers are among the most significant digital loyalty program benefits. You can take advantage of loyalty platforms that allow you to send SMS and notifications directly to your customers.

    That simple action allows your business to deliver the right message to the right customers at the right time. For instance, you can configure your digital loyalty program to automatically send SMS to customers who have not made any transaction within seven days.

    Once they receive those messages, they will feel appreciated and recognized. Plus, your brand will be at the forefront of their minds.


    When there is lots of competition, you will find it challenging to retain your customers. Good thing digital loyalty cards come into the scene. They offer you unlimited, innovative ways to engage with your customers and build a stronger relationship with them. Plus, you can even personalize their experiences with your brand.



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