Should you run a digital loyalty program?

Yes. And we’ll prove it to you; by the end of this article and infographic, you will learn about what digital loyalty marketing is, how it works, why it’s so effective, and why we think you should get some digital loyalty punch cards setup for your small business.

We all know how loyalty programs work – rewarding customers for regular visits and repeat purchases. It only makes sense to make your loyalty program digital, and use rewards program software.

Making it convenient for your customer to track purchases redeem rewards will help your loyalty scheme reach Starbucks rewards levels of success. Plus, the number of successful customer loyalty program examples show you just how many brands are making it work.

Here’s why you should have a digital loyalty program


Want a digital loyalty program for your store? Check out!

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<a href=””>CandyBar – Digital punch card loyalty program</a>

Why you should have a digital loyalty program

In a milkshake bar not so far away…

Alice the customer: Awesome milkshake and great service! Love it!
Bob the bar owner: Thank you!

3 days later…

(Bob sees Alice buying milkshare from another shop)

Bob thinks to himself, “If people love my milkshake and service, why don’t they come back more often?”

Well, the truth is…

Customer satisfaction ≠ Customer loyalty

“There is a big difference between a satisfied customer and a loyal customer. Never settle for ‘Satisfied’.” – Shep Hyken, Customer Service Expert [source]

Customer loyalty doesn’t come by chance.
You have to actively build it!

Here’s an example:

Alice: Awesome milkshake and great service! Love it!
Bob: Thanks! Fancy getting a free milkshake on your third visit?

Here’s one way you can incentivise customers to be loyal. This is known as ‘Loyalty Marketing’.

Loyalty Marketing is actively engaging and incentivizing customers to come back often.

Bob: Hmm… Is Loyalty Marketing really worth the effort?

Yes! Here’s some data and examples to prove it:

“(My Starbucks Rewards) continues to be our most important business driver as new members contribute not only short-term increases in revenue and profit, but also to long-term loyalty for years to come.” – Howard Schultz, Starbucks CEO [source]

Loyalty Marketing works. It rewards your customers and drives more revenue and referrals for you.

Bob: If Loyalty Marketing is so good, why don’t all businesses already have it or do it well?

Good question! Here’s why:

  • It may not work well for some industries. (Such as: Automotive sales, Construction, Appliance repair, etc) One-time purchase industries are better off focusing improving their products and services and encouraging referrals.
  • A physical punch card loyalty program can be costly and labor intensive. From designing, printing, promoting to manually stamping them during every transaction, every step can add up to a huge amount of work.
  • Customers aren’t always fully engaged. Sometimes they forget to bring their punch cards, sometimes they lose their punch cards
    It is hard to track and measure impact. It’s a challenge to determine how many percent of the overall revenue can be attributed to loyalty program

Bob: Sounds daunting! Are you sure I can do Loyalty Marketing? I’m just a small business owner…

A digital loyalty program app would be ideal for you:

  • It’s easier and faster to set up and run
  • Customers can access their punch cards on their smartphones any time
  • Everything is tracked and measured automatically
  • More time for you to engage your customers and understand them better

A digital customer loyalty program app is a smart and easy way to incentivize your customers to come back often.

And this is why you should have a digital loyalty program.

Bob: Sounds good. Let’s do this!

Want a digital loyalty program for your store? Check out!

Last Updated 190222


Posted by Visakan Veerasamy

Visa is CandyBar's blog editor. He's a 3-time Quora Top Writer, and he's working on a project to write a million words. Hopes to someday enjoy a glass of scotch from beyond the Earth's atmosphere.

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