As the smartphone is now the most widely used medium and is increasingly replacing the wallet due to the various mobile payment methods, the customer card should also be transferred to the smartphone.
Digital programs for customer loyalty are implemented via an app on the cell phone and can therefore not be forgotten. People of all ages now own mobile devices - 94% of all Austrians already use a smartphone, according to the Mobile Marketing Association Austria in its Mobile Communications Report 2017.
And since most cell phone owners always carry their device with them anyway, there is no additional effort for them. This means that customers always have their loyalty card with them and can enjoy the benefits of promotions, coupons and other offers while shopping - without having to use plastic cards.
Incentives such as discounts or rewards motivate customers to stay loyal. However, incentives are not only created by collecting points, but also in a playful way, known as gamification - which is easy to implement with digital solutions.
These benefits encourage them to shop with you again and again and even recommend you to others. 'Buy ten coffees and get the eleventh free' - the best example of such an incentive. Thanks to the digital loyalty card, customers no longer have to show plastic cards at the point of sale, but simply scan the bill with your own customer loyalty app, for example.
The digital route also makes it easier to register and manage an entire customer loyalty program. Our Loyalty Report also shows that customers want to register quickly and easily.
With the digital loyalty card, there is no need to wait for anything. Customers can get started immediately and make full use of all the functions of the loyalty program. Registration for the loyalty program can even be done via existing Facebook or Google+ accounts to keep the effort even lower.
This automatically creates a link between the customer account and the profile in a social network. Alternatively, interested parties can register by email or SMS. Since the entire process is automated, you as an entrepreneur will also save a lot of time, which will also have a positive impact on your wallet at the end of the day.
The most effective customer loyalty programs are those that build a personal bond with their customers through continuous and direct communication.
Thanks to advanced technology and a spirit of innovation, there are many different possibilities. For example, you can send individualized offers or reminders directly to your customers via email, newsletters and push messages or using the new beacon technology.
The digital solution means that physical plastic loyalty cards are no longer needed, nor are paper stamp passes or printed invoices at the checkout.
According to information from the Thales Group, the production, packaging and transportation of a physical loyalty card generates an average of 150 grams of CO2 per card. This shows that a digital solution makes a significant contribution to CO2 avoidance.
In addition, mobile payment options such as Apple Pay allow customers to increasingly leave their wallets at home. This is a flexible response to the new needs of consumers - digital, quick and easy.
As a rule, loyalty programs serve on the one hand to retain customers and on the other hand to collect as much relevant customer data as possible in order to constantly optimize one's own offering.
In the digital space, however, completely new possibilities open up: You can track purchasing behavior in detail and collect in-depth demographic data about your customers (in compliance with data protection regulations, of course).
This opens up completely new scenarios for your market research. You can decide for yourself which information is relevant to you and which you want to collect and analyze. Surveys are also easy to conduct - without the need for a market research institute. This means you can easily find out new things by sending out the survey digitally.
The fine art of customer acquisition is to turn existing customers into brand ambassadors. Market research shows time and again that consumers are more likely to trust the opinions of friends and relatives than PR and advertising messages.
In digital loyalty programs via app or web solutions, numerous functions can be integrated that motivate existing customers to recommend the program to their circle of friends.
For example, you can credit loyalty points to participants when they share information or reviews on social networks, or simply send an invitation to your loyalty program to friends and acquaintances.
Digital solutions are a win-win situation. For you as an entrepreneur and also for your customers. If you're interested in what a digital solution could look like for you, take a look at our website to find out more: