Digital loyalty card solutions: how do they work, and who can benefit from them?

The digital loyalty card solution replaces paper cards. Find out how it works and set up a Wallet card using stmpr – no app required, it’s simple!

Digital loyalty card solutions: how do they work, and who can benefit from them?

The guest drops in again, but has left their paper stamp card at home, so that day’s visit could easily be missed from the collection. The digital loyalty card solution offers an alternative to this: the guest scans a QR code to sign up, and can then save the loyalty card to Apple Wallet or Google Wallet without having to install a separate app.

With stmpr’s digital loyalty card, staff can record stamps using the Scanner app or in kiosk mode, whilst you set the terms for rewards. This article explains the process of signing up, collecting stamps and redeeming rewards, and helps you consider how the programme can fit into your business’s day-to-day operations.

Key Points

  • The digital loyalty card solution is a digital alternative to the paper stamp card that can be stored on a mobile phone.

  • Guests sign up using a QR code, and stamps are recorded by a member of staff or, in kiosk mode, scanned by the guest themselves.

  • You decide what triggers a stamp, how many stamps are needed to earn a reward, and the conditions under which rewards can be redeemed.

  • Data on connections, stamps issued and rewards redeemed show how the programme is being used.

  • When designing the Wallet card, plan the programme’s rules in advance, as the structural settings are locked once the programme has been published.

Table of Contents

What does a digital loyalty card solution mean for your small business?

A digital loyalty card solution provides your customers with a loyalty card that they can store on their phone, in Apple Wallet or Google Wallet. With stmpr’s digital loyalty card, which is built on Apple Wallet and Google Wallet, customers can sign up using a QR code, without needing to install a separate app. The card is part of the loyalty programme; it is not a means of payment and cannot be used to pay for purchases.

How does the digital loyalty card differ from a paper card?

A paper stamp card can get lost, damaged or left at home by the guest. The Wallet card stays on the phone, so the guest can keep it with them along with their device. This offers a convenient alternative to the paper card, but it doesn’t eliminate all inconveniences: for example, a guest’s phone might run out of battery, or they might be unable to access the card.

You don’t need to replace all physical cards straight away. You can launch a new digital loyalty scheme or introduce the Wallet card gradually, whilst monitoring how well it fits in with your guests’ habits. Our brief overview of digital wallets also provides background information on how they work.

Who might find a digital loyalty card useful?

It can be practical for small businesses where customers return regularly, and where the rewards linked to stamps naturally complement the service or purchase.

  • Café or bakery: customers can collect stamps after their purchases.

  • Hairdresser’s: a stamp could be linked to a service used, and you decide what the reward is.

  • Gym: the programme can be tailored to attendance at training sessions.

Choose a rule that customers can easily understand and staff can quickly implement. You can also explore digital loyalty card solutions tailored to different types of business.

How does the Wallet card work, from QR code registration to rewards?

The process starts with your business: you register, set up and then publish the card. Before publishing, consider the number of stamps and the terms of the rewards. Once published, these structural settings cannot be changed, but the visual elements can be edited. Once published, you’ll receive a public link and a QR code, which you can share at the counter, on social media or on printed leaflets.

How do guests join the loyalty programme?

The guest scans the QR code and then saves the loyalty card to Apple Wallet or Google Wallet. They do not need a separate stmpr app to do this. A Harvard Business School article on how loyalty programmes work can also provide insights into setting up the rules, such as how to tailor the programme to the guest experience.

How does a member of staff stamp the card, and how does redemption work?

After a purchase or visit, the staff member scans the QR code on the guest’s Wallet card using the stmpr Scanner app, then records the stamp. Kiosk mode can also be used. If the QR code cannot be read, the four-digit backup code on the card must be used. The Scanner app works offline even with a weak Wi-Fi connection.

Once a customer has collected the required stamps, they can redeem their reward in accordance with the conditions set by your business. For example, a café might offer a reward once a pre-determined number of stamps has been collected. Manual stamping using QR codes does not require POS integration. If you’d like to set up your own programme, start by registering as a business.

How can you design a digital loyalty programme that suits your business?

The programme will fit in well with your operations if it relates to the activities your customers carry out at your premises. First, decide what counts as a stamp: a purchase, a visit or, for example, taking part in a training session. Next, determine the number of stamps required, the reward and the redemption conditions. There is no set number of stamps that applies to every business.

What stamp and reward rules suit your business?

The rules should be easy to explain and staff should be able to apply them consistently. In a café, a stamp might be linked to a purchase; in a hairdresser’s, to a service received; and in a gym, to a session attended. Choose a reward that your business can clearly promise and deliver. The café loyalty card example can provide ideas for designing your own rules.

Also specify when the customer receives a stamp and exactly when they can redeem the reward. Clear terms and conditions help to avoid misunderstandings at the counter or after the service has been provided. A digital loyalty card solution will fit in with your day-to-day operations if stamping can be easily integrated into the purchasing or service process.

What should you plan in advance for the card?

When designing the card, plan your brand’s visual identity and the information for customers. The logo, colours and stamp graphics help make the card recognisable, whilst the reward text makes it clear what the customer is collecting. Before publishing, check the logic of the stamps and the reward conditions. The structural settings are locked after publication, but the visual elements can still be modified later.

How should you handle data and prepare your staff?

Only request guest data that you need to run the programme, and explain what you will use it for. Your business is the data controller for any guest data collected upon registration. You may only send push notifications with consent for marketing purposes.

During training, show staff how to scan the QR code, record the stamp, and use the four-digit backup code if the QR code cannot be scanned.

Start setting up your digital loyalty programme

How can you measure and improve the use of digital loyalty cards?

The statistics show how guests are using the loyalty programme. Check how many people have joined, how many stamps you’ve issued, and how many rewards have been redeemed. These figures provide an insight into the programme’s usage, but on their own they do not prove an increase in revenue, nor do they guarantee a return on investment.

Which data should you review regularly?

It’s worth looking at sign-ups, stamps issued and rewards redeemed together. If lots of guests are signing up but few are redeeming rewards, check whether the rules are clear and whether the rewards are appropriate. If few people are joining, check how visible the QR code is at your premises, on social media or on your leaflets.

Review the data regularly, then change just one thing at a time. This makes it easier to track how usage of the programme changes following the adjustment. You can see what data you can track in the details of the loyalty programme statistics.

How should you use campaigns and push notifications?

In a campaign, you can select which guests the offer should be aimed at and when it should be active. Push notifications are one way of delivering messages: they are sent via the guest’s saved Wallet card. Only send push notifications if you have obtained consent for marketing purposes, and bear in mind that the monthly sending limit varies by package.

The data from the digital loyalty card solution can help you ask questions about how the programme is performing. Assess the impact of changes based on your own data and guest feedback; do not assume any guarantees regarding results.

What should the next step be?

Set out the terms and conditions for the rewards, then select the card’s design elements, such as the logo, colours and stamp graphics. Staff can apply stamps using the Scanner app, which works offline too. If guests are collecting the stamps themselves, you can also use kiosk mode.

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Launch your loyalty programme on your own terms

The digital loyalty card solution offers guests a loyalty card accessible via their mobile phone, whilst giving you an overview for managing stamps and rewards. Guests join via a QR code and then save the card to Apple Wallet or Google Wallet without needing a separate app.

You decide what earns a stamp, how many stamps are needed to redeem a reward, and what the card should look like. Data on sign-ups, stamps issued and rewards redeemed show how the programme is being used. These can provide guidance for fine-tuning, but do not guarantee specific business results.

Staff can record stamps using the Scanner app, which also works offline. If the QR code is unreadable, the four-digit backup code on the card can be used. If you’re thinking of launching a digital loyalty programme, try stmpr for free.

Frequently asked questions about digital loyalty cards

What is a digital loyalty card?

A digital loyalty card is a loyalty card stored on a customer’s phone, which can be saved to Apple Wallet or Google Wallet. The digital loyalty card solution manages stamps and rewards in accordance with your business’s rules. The guest joins via a QR code, without needing to download a separate app. The Wallet card is for use with the loyalty programme; it is not a means of payment. Its appearance may vary depending on the device; updates to the card are managed by the Wallet service.

Does the guest need to download a separate app for the digital loyalty card?

No, the guest does not need to install a separate stmpr app. They simply scan the QR code used to connect, then save the loyalty card to Apple Wallet or Google Wallet. You can display the QR code on the counter, share it on social media, or include it on a printed leaflet. The card is accessible in the guest’s Wallet. The appearance may vary depending on the device; updates are managed by the Wallet service.

How does a guest get a stamp on their Wallet card?

The staff member scans the QR code displayed on the guest’s Wallet card using the Scanner app, then records the stamp. If the QR code is unreadable, the four-digit backup code on the card must be used. Stamping can also be done in kiosk mode. The Scanner app works offline, so it can be used even with a weak Wi-Fi connection.

Can a Wallet card be edited after it has been published?

The visual elements of the card can be edited even after publication. These include, for example, the logo, colours and the stamp icon. Structural settings, such as the number of stamps required and the reward conditions, are locked after publication. You should therefore think these through in advance and check the card before publishing it. You can adjust the card’s appearance later, but it is worth clearly defining the programme’s rules from the outset.

What do the statistics show, and can you send push notifications without a separate app?

The statistics can provide an overview of connections, stamps issued and rewards redeemed. These indicate the programme’s usage, but do not guarantee an increase in revenue or customer retention. In a campaign, you can select the target audience and timing, and push notifications are one method of delivery. Messages can be sent to a guest’s Wallet card without the need for a separate app, provided they have given their consent for marketing purposes. The monthly sending limit depends on the package. Your business is the data controller with regard to the guest data collected upon sign-up.

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