How Loyalty Card Apps Work: Best Features and Benefits Included

Posted on July 23, 2021 by Nikhil P Naik

While loyalty cards are purely meant to focus on retaining existing customer data, loyalty card apps are the perfect tools to empower this customer retention initiative further.

In recent years, there has been an upsurge in loyalty card apps as more companies realize their impact in strengthening their customer loyalty programs. This post aims to provide you with more details about these card apps and why they are critical to your organization’s wellbeing, and why you should use them:

loyalty app

What are Loyalty Card Apps?

A loyalty card app provides businesses with a digital platform to run their loyalty programs and other digital customer processes more efficiently. These cards allow merchants to provide their customers with various rewards and offers in exchange for data about their foot traffic and other customer activities.

Many brands continue to use these loyalty card apps as more people become comfortable using smartphones and applications than physical paper cards. Such companies may give their customers simple offers and rewards, while others store their virtual cards via mobile numbers or SMS.

Why Use Loyalty Card Apps for Your Business?

The sheer number of benefits for using loyalty apps is indispensable for inclusion as part of any business’s loyalty program. The following are some of the main benefits of using loyalty apps:

1. Easier to Manage and Track

There is no efficient way to track customer redemptions with paper cards. You can imagine a scenario where your cashier takes notes while issuing rewards and stamps. This can be really time-consuming, let alone difficult to manage and process.

Meanwhile, loyalty apps compile all customer data in specific dashboards for easy access and use. These card apps also enable you to track your staff performance and offer incentives and offers accordingly. This can be invaluable data when looking to reward your staff for their performances.

2. Loyalty Cards are More Recognizable and Usable by Everyone

While not too many people still understand what a loyalty card app is, they are more inclined to embrace this new digital loyalty program than paper. Therefore, you don’t really need to invest much in the onboarding process.

More people, including your customers, will be more inclined to use the loyalty apps because of their minimal barrier to entry.

3. Stay in Touch with Customers

Loyalty card apps let businesses stay in touch with their customers via push messaging and other communication channels. You should already know that customer engagement and loyalty programs go hand-in-hand.

Loyalty card apps let you stay in contact with your customers through perfectly-timed messages using SMS messaging and push notifications.

4. Gather Comprehensive Customer Data

Loyalty apps can provide businesses with several crucial data about customers. These may include Geo-location mapping, user behavior tracking, user preference tracking, etc. These are just a few areas where loyalty apps have proved to be handy when fetching detailed customer data for making more personalized offers. These also help to drive up customer conversion rates.

5. Can be Edited Easily

You cannot update paper cards, change their rewards list, or send reminder emails. That’s why most businesses don’t prefer using traditional loyalty cards. Paper cards are created to be streamlined. As such, customers cannot have diverse options to earn rewards or even redeem them. This would mean having to buy the same item several times while having just one reward option.

On the other hand, you can edit loyalty card apps easily and update them each time your customers make specific purchases. They also allow customers to redeem their rewards and offers easily whenever they want to. Everything is updated in real-time on the company’s dashboard for easy access and use.

6. Increase Customer Convenience

According to a survey, over 53% of customers prefer to use digital coupons. And another 63% agreed that they would use more coupons for their online shopping if they had that option.

Ideally, loyalty apps provide businesses and customers with a more digital approach to leveraging the benefits of using loyalty programs. As more customers now have access to smartphones almost all the time while shopping, loyalty apps serve the specific purpose of making loyalty programs more digital.

7. Deliver a More Enriching Experience

The thrill of using loyalty apps and other digital media is highly interactive for customers. That’s why incorporating various interactive elements such as social media interaction, gamification, and exciting user profile creation into your loyalty app can be effective. These programs offer end users an enriching and much-improved experience.

8. Customers Cannot Misplace Apps

Many customers have admitted to paper cards being their biggest barrier to redeeming their loyalty rewards. Most physical cards are bulky to carry everywhere and can get lost more easily. The fact that you always need to have them with you everywhere you go can be a huge inconvenience.

In contrast, loyalty card apps are easier to use because you have them on your mobile devices. Your customers always have your loyalty app at their fingertips whenever they want to use them. This way, your biggest worry won’t be your customers losing their smartphones. Instead, it will be your loyalty app being bundled with other loyalty apps on their handsets.

9.  It Cannot Get Damaged

Imagine a situation where you shop for products then realize that your physical card is damaged and cannot collect points. Or maybe the card cannot read because of chip damage or error. This can be quite inconveniencing and may reduce your chances of winning loyalty points and rewards. Moreover, you will have to spend time and cash to replace the damaged card.

This doesn’t apply to loyalty card apps. They cannot get damaged. You can also access them more easily and install them on any device in case you lose or misplace your handset.

Wrapping Up

There you have it. This post should provide you with better insight into what loyalty card apps are and the benefits of using them. Loyalty apps are essential for building a loyal and successful customer base. They also appeal to customers more than traditional cards. And most importantly, they will be useful to your business.

About Nikhil P Naik

Nikhil Naik has a Master's Degree in Information Systems, and is currently working as a Software Engineer at Microsoft. He also loves playing cricket, listening to music, and traveling. Twitter Handle - @buzz_nikhil.

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