A Digital Loyalty Card is the advanced version of a traditional loyalty card that is interlinked with the brand’s digital app and can be controlled through a customer’s mobile phone, making the entire process seamless and hassle free. According to a Citrus report, 80% of customers engage more with a brand that has a loyalty program that they are a part of. When implementing a loyalty program in your business, it is important to keep evolving the program, to keep the program updated and engaging. In a post pandemic world, where massive digitization has already taken over, the best way to secure your loyalty program and bring positive changes to your brand is by digitizing it.
Why is Digital Loyalty Card Imperative in today’s era?
The contribution of digital loyalty cards in today’s era is indispensable. To keep up with the pace in the advancing marketing domain, attaching a digital loyalty card to your brand is the most conducive decision. With the arrival of digital loyalty programs, brands have effectively planned personalized strategies. Also, the smartphone installed loyalty apps give customers the opportunity to experience an enhanced customer journey facilitated by multiple functionalities. Today with numerous alternatives available in the market, the competition is indeed tough and unhealthy at times. Paper loyalty card holders can be victims of fraud cases that can be perpetually avoided using digital loyalty cards. Since every action taking place in your digital space is thoroughly monitored, even the smallest of abnormal activity can be reported and monitored. Providing important statistical insights and analytics, digital loyalty cards play a crucial role in planning and drafting strategies to boost customer retention and engagement.
Benefits of Digital Loyalty Card
Here are some benefits of Digital Loyalty Card-
- Enhancing Personalized Experiences for customers– Unlike Plastic Loyalty Cards that occupy the space in your wallet, digitized loyalty cards are connected to mobile apps within your phone boosting convenience and assuring a seamless shopping experience. The best part about digital loyalty cards is their ability to collect user data on individual user subscription. This doesn’t only make the entire process seamless and coherent but also keeps track of vital user data that can be used later for product or reward personalization.
- Customized Rewards and Services– The most important thing that brands have gained from digitization of loyalty cards is the answers to several questions that would have been unanswered if we were still stuck with traditional loyalty cards. While logging in to your loyalty app, you might have stumbled across several questions regarding your purchasing behavior, shopping choices or experiences etc. These details are extremely crucial to brands for tailoring rewards and product offerings, so that the customer demand can be met as precisely as possible.
- Spontaneous reminders to keep your customers notified and updated– Smartphones are constant companions of human beings. Digitized loyalty programs have taken full advantage of the situation, to notify customers and keep the brand name in the back of the customer’s mind. By sending personalized email reminders and introducing modern gamification methods, digital loyalty cards have successfully grabbed customer’s attention to draw out maximum sales.
- Guarantees convenience and provides seamless experience– A study on CodeBroker survey stated that over 440 millennials who were part of a digitized loyalty program had an engagement rate over 97% with the brand. This was solely due to the convenience of a digitized mobile loyalty app, that can be connected from anywhere and everywhere, without the loss or exhaustion of consumer data.
- Direct communication motivating feedback– Another pivotal benefit that can be drawn from digitized loyalty cards is the ability to connect directly without going through the process of waiting. Technology has ensured instant solutions to our problems. With digitized loyalty cards customers can enjoy the perks of instant reciprocation that makes them feel valued and important. Also another very important aspect of digitized loyalty cards would be the instant attention given to customer feedback. When a brand acts on customer’s demands immediately this reflects their passion and dedication towards serving the customers which amplifies the brand image.
Examples of Digital Loyalty Card
- Starbucks- The Starbucks loyalty program that can be accessed over digitally is one of the most appreciated and used loyalty programs of all time. On spending a certain amount of money, the brand grants you Star Points, which can later be used to redeem gifts and other enticing offers. With the Starbucks Reward App the entire process can be experienced over digitally. The app helps you track your progress, identify your previous orders and sends you frequent notifications on upcoming offers on special products and seasonal drinks.
- Amazon Prime– Starting as an online ecommerce store to turn the course of their business entirely with the help of an excellently designed loyalty program, Amazon has marked their place in the marketing domain. Though being the subject of several argumentative analysis for the past few years, the brand’s loyalty program has been proven efficient for rewarding loyal customers as well as motivating customers to come back for repeated business. The benefits are exclusive, enticing and favours every customer individually. For example, customers get free shipping on orders that cross a certain amount and get access to exclusive entertainment contents on the brand’s new OTT platform, Amazon Prime.
- Sephora- Though the brand had its own loyalty program that worked efficiently, retailers have decided to opt for something new to pace up with the increasing digital advancements. The updated version of the program reconditioned and improved in the year 2019 is to benefit loyal customers with added perks and benefits. The brand has been successfully catering to their large customer base by constantly upgrading their beauty insider program to provide consumers with exactly what they want. In recent times Sephora has added a few more enticing features to their iPhone application making it more convenient for customers to shop both in-store and online.