What are Digital Loyalty Cards?

Loyalty programs and loyalty cards are primarily a transaction between the consumer and the merchant. The general rule is that to receive the rewards that the loyalty cards provide, the consumer gives up some access to data and now, importantly, access to channels of communication.

So do loyalty cards work? Surveys have shown that 80% of shoppers will purchase more from businesses that they hold loyalty cards for. That's good for business and good for the consumer.

However, the new generation of mobile and app-enabled loyalty cards provide even greater power than the traditional plastic card. The ability to marry up the transactional data and the variety of mobile communication channels, such as push, sms and email, allows these loyalty programs much greater reach and relevance.

Customer profiling becomes easy and then using targeted, meaningful campaigns based on these profiles, merchants can increase sales and visitations even further.

Digitising loyalty cards is happening now and the benefits for business and the consumer are great.