While loyalty programs are an excellent way to improve the connection that your business has with its consumers, just having a strategy in place isn’t enough anymore.
Instead, companies need to make sure they’re giving their consumers an experience that’s easy and engaging.
More progressive and forward-thinking businesses realize that it’s easier for consumers to track and interact with their reward opportunities on an app.
As digital loyalty solutions become easier and more accessible, businesses have found that loyalty punch card apps are more cost-effective, versatile, and compelling than their paper and plastic counterparts.
The Starbucks app is an excellent example of this.
With a new digital loyalty program, the coffee brand made it much easier for their customers to earn and manage rewards, encouraging a higher level of spending.
Old-fashioned card-based loyalty programs meant that customers had to carry different punch cards in their pockets and wallets. This means that clients have to fiddle with their belongings at the checkout to find and use a card.
Your customers may often leave their cards at home and neglect to use them to avoid the hassle.
Around 43% of consumers say that having a collection of cards is the biggest frustration they have with loyalty programs.
On the other hand, your customers are already taking their smartphones with them wherever they go.
By delivering a punch card app, you can ensure that your customers can easily access your program wherever they are, without the pocket clutter.
2. Customer Engagement
Another massive benefit of punch card apps is that they encourage better customer engagement levels too.
Card-based programs generally require your customers to remember to redeem their rewards and offer their card up at checkout.
A plastic card or paper punch card doesn’t engage with your customers or remind them of the benefits of interacting with your brand.
An app can send push notifications straight to your customer’s pocket, letting them know that they can save more by buying products at a specific time.
Remember, smartphone owners almost always have their devices with them, so you’ll have constant access to your target audience.
These consumers spend around 2-3 hours on their phones each day, improving your chances you’ll reach your customers when they’re ready to spend.
3. Data Collection
When you hand out a standard loyalty card or punch card, there’s no way to know for certain how many people are using it.
You can’t analyze any information on your target audience or find out how people are responding to your offers.
Because you have no way to collect data, there’s also no option for sending personalized offers to your clients either.
Mobile punch card apps allow you to collect valuable information (with your customer’s permission). That data provides you with a useful insight into your target demographic.
Mobile apps are so adaptable and offer an additional sales channel. When you learn more about how customers are using your digital tools, you can adjust your app accordingly to improve your chances of better outcomes.
4. Lower Cost
At first, it might appear it will cost more to work with developers and advanced technology to build your punch card app.
However, your app might end up being a lot more affordable and cost-effective than an old-school card in the long-term.
There are no ongoing costs of maintaining a punch card system, and the money you invest in your business will not have a negative impact on the environment either.
With a digital punch card, there is no need to replace or reprint any outdated cards for your customers. Instead, the punch card app will help you keep track of your customers and their rewards instead.
So, Is It Time For You to Go Digital?
Loyalty programs remain to be one of the best ways for businesses to strengthen their relationships with today’s customers.
However, you could benefit from upgrading your old-fashioned punch card strategy to something more mobile-friendly.
The latest reports suggest that 66% of customers would have a more positive opinion of a brand if their loyalty program was smartphone-accessible.
Jen McKenzie is a freelance writer at Uk Assignyourwriter and independent business consultant from New York. She writes extensively on business, education and human resource topics. When Jennifer is not at her desk working, you can usually find her hiking or taking a road trip with her two dogs. You can reach Jennifer @jenmcknzie.