A loyalty program gives brands space for customer retention, tracking their purchasing behavior, and direct communication. The program usually includes a customer card, which allows the customer to be identified when making a purchase at a physical store.

The extent to which customers actually use the program is decided by a combination of three things: what the program actually offers them, how easy it is to join, and what is required of them when using it.

Most programs ask the customer to identify themselves at the checkout. A plastic card acts as a shortcut for identification, but only when the customer actually has it with them. In practice, people often don't carry them because they take up space in an overstuffed wallet or they simply forget them at home. Another common identification method is a registration email. The customer dictates it at the checkout, which brings its own problems: a dictated email can easily be mistyped, and even a few extra seconds delay the queue behind them.

A digital card doesn't take up space in a wallet or a phone, the customer doesn't have to think about it or look for it, and it works offline too. It offers brands many more possibilities for working with the customer. The card's content can be changed in real-time, so the customer sees the current point balance or benefit validity without needing to open an app. The card can send notifications directly to the phone's wallet, including those triggered by location when the customer is near a store. The design and content of the card can be personalized according to the customer segment, and the company can see exactly how many people are actually using the card. All card functions can be found in this article.

Based on the experiences of hundreds of clients, not just in retail, we have written down what successful programs have in common. We have divided it into three areas: the program itself, how to get people into the program, and how to fully utilize the cards. At the end, you will find a downloadable checklist that you can go through step by step for your own program.

The most common mistake is a program that is unnecessarily complicated. If the customer doesn't see a clear benefit at first glance, they have no reason to register. The same applies in reverse: the simpler the program, the higher the registration and repeat usage rates.

Even the best program doesn't work if people can't access it. A digital card has an advantage over a plastic one; registration takes a few minutes, and there's no waiting for delivery or filling out information at the store. Communication about the program itself is equally important.

This is where it's decided whether customers will use the card or if it will end up forgotten. Registration is the first step; the value of the program is revealed in how the brand continues to work with customers.

What is easily overlooked but can help a lot:

A successful loyalty program needs three things: a simple and understandable concept, barrier-free registration, and active communication that keeps the customer informed. If any one of these is missing, the program usually won't reach its potential, no matter how attractive the benefit is.

We have prepared a practical checklist for you. Download it and you can go through your loyalty program step by step.