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Mobile Loyalty

5 Reasons Why a Loyalty Card App Will Improve Your Business

Written by 
Brad Davis
 - 
March 1, 2019

Much of the content you see online regarding how to increase profits or how to promote your business focuses on “how to get more customers”. The power of customer retention and loyalty is often understated or overlooked.

Most people associate business growth with the concept of “broadening your horizons”. But what happens to your existing customers?

A good example of an effective customer loyalty program is a digital stamp card app. This involves creating a digital version of your traditional punch card system which includes useful and relevant information about your customers such as demographics, purchase history, and spending habits.

A brand that truly appreciates the value of having a strong customer base will ensure that their existing customers are as pampered as their new customers are, through mediums such as customer loyalty programs. Failure to do this results in one-off customers, which in the big picture isn’t a sustainable business model. Importantly, most customers (57%) prefer to engage with loyalty programs through mobile devices, so adapting to a digital model helps businesses stay relevant and meet consumer expectations. 

Given that most businesses have some loyalty programs, here are four key reasons why a digital stamp card app will improve your business. 

Want to launch a loyalty program but need a bit of help? Check out our free Digital Loyalty Program Launch Checklist!

1. Customer Data Helps You Target Your Audiences Better

Image of a man holding a target.

How much do you know about your customers? Especially your loyal ones, who interact with your brand frequently. 

Digital loyalty card apps provide you with a plethora of customer data, which can be invaluable for understanding their preferences, habits, and purchasing behavior. 

By implementing a digital stamp card app, you can see how frequently people are purchasing from you (based on how often they’re stamping), how often they are redeeming vouchers, and which offers they are engaging with more. All of these pieces of data help you learn more about your customers and their purchasing habits. 

As opposed to traditional paper punch cards, which would provide little to no customer data, you can now have access to previously untapped information. 

Importantly, recognizing and understanding the behavior of your loyal customers allows for better engagement and ensures they feel valued, further strengthening the bond between the customer and your brand. 

Stamp Me’s Merchant Console allows you to effortlessly manage your digital stamp card app and make changes to your program at any time. Your customer data is easily stored and can be downloaded at any time. Keep track of which customers are redeeming vouchers, getting stamps, and what offers they are engaging with. 

In an era where personalization is key to standing out in a crowded market, harnessing the data from digital loyalty cards can give your business a competitive edge. 

Strategically targeting your customers and in turn, adjusting your loyalty program accordingly will make it more likely for them to stay engaged with and loyal to your brand. Effective personalization in a loyalty program leads to a 6.4 times increase in member satisfaction

This is an indispensable tool for allowing businesses to execute the next point…

2. Loyalty Card Apps Allow for Targeted Communications

Graphic with text and graphics of a phone, cake, and present.

Digital loyalty programs open up the lines of communication between the consumer and the business, allowing the business to offer exclusive deals, birthday discounts, friendly reminders via SMS and Push Notifications, and other offers that help build the relationship.

This kind of relationship with your customers is invaluable to better understanding the strengths and weaknesses of your business model thus improving your business to be more appealing to your loyal customer base.

Targeted communications can range from offering targeted promotions, celebrating milestones, or sending timely communications tied to key moments. All of these aim to make your customers feel understood and show that you’re paying attention to your customers. 

3. Increased purchases through impulse buying

There is a thin line between making educated recommendations and encouraging impulse buying. If you’re a regular shopper, chances are you’ve fallen for this at some point, either at the check-out in a physical store or online.

If you’ve just spent $500 on a new smartphone, splashing out an extra $50 for a designer phone case doesn’t seem like as big a deal compared to if you were shopping for a case a few weeks after purchasing the phone, and you’re comparing that $50 designer case to a simple $5 standard case.

This kind of impulse purchase is something that can only work effectively when you have adequate information about your customer.

4. Increased number of referrals

Two customers talking and pointing at a bottle.

The most trustworthy advertisement is a word-of-mouth recommendation from a peer. This isn’t to say that standard marketing methods aren’t effective, but generally, people will believe in promoting a business more when there is nothing to be gained from that person’s endorsement rather than paid advertisements or sponsors… especially among millennials.

A recent study from Kissmetrics found that nearly 90% of millennials will favor recommendations from friends and family over trusting a brand’s advertisements and promotions of its product.

And when do people promote a business of their free will? When they are extremely satisfied by it and feel appreciated – a good customer loyalty program encourages your customers to tell their friends.

5. A Digital Stamp Card App Leads to a More Personalized Shopping Experience 

In the digital age, consumers crave more than just products or services; they desire personalized experiences tailored to their preferences. A digital stamp card app not only encourages repeat business but also garners insights into individual buying behaviors. By tracking the preferences of each patron, businesses can create a curated shopping journey for them. 

Imagine walking into your favorite coffee shop, and with a notification on your phone, you're presented with a special offer on your most-ordered drink. Or, a clothing store sending tailored recommendations based on your redemption history data from our digital loyalty card. 

Stamp Me graphic of text and icons.

This level of personalization fosters a deep sense of connection and appreciation between the customer and the brand. It makes customers feel seen, understood, and valued. Moreover, a personalized approach translates to more meaningful engagement, ensuring that promotions and offers resonate more deeply, enhancing overall customer satisfaction and loyalty.

In Conclusion

To sum up, perhaps in the search for improving your business and increasing profits, it’s best to look to your existing customers rather than putting all your energy into trying to attract new ones. 

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