Loyalty cards in retail

A loyalty program in retail is not a competitive advantage in itself. Most major retailers offer one, and European customers are members of nine loyalty programs on average. Therefore, how easily a customer can use the program and its availability at the time of purchase are crucial.

We therefore looked at how successful retail brands, which have a loyalty program linked to PassMachine digital cards, approach this. Each of the 5 selected brands has its program structured slightly differently, but they all have one thing in common: a loyalty card in Apple Wallet and Google Wallet, active communication with members, and benefits that make real sense to the customer.

Havlíkova Apotéka has launched a new digital loyalty program that connects its e-shop and physical stores. For every 1.90 CZK spent, members earn 1 point. Points can be exchanged for gifts from the product catalog, and each point also moves the member towards a higher status with additional benefits.

However, points are not only earned through purchases. Members receive them for registration, moving to a higher status, on their name day and birthday, for recommending friends and their first purchase, and for completing extended profile information. Customers can download their digital card from their member account on the website to Apple Wallet or Google Wallet. At the store, they just need to show it on their phone.

Main program benefit for retention: Bonus points for completing profiles motivate customers to share data, which the brand uses for personalized communication. Referral rewards turn existing members into ambassadors and bring in new customers. Statuses provide a reason to return, as every purchase moves the member higher.

The JYSK Business to Business program offers corporate customers a constant 6% discount on the entire assortment, which also applies to already discounted or promotional items. Thanks to the digital B2B PassMachine card in Apple Wallet and Google Wallet, company representatives have this benefit immediately available when purchasing at any physical store.

The card can be easily shared among purchasers or employees within a single company. Purchases at the store are also complemented by access to the B2B team and flexible delivery.

Main program benefit for retention: Corporate clients prefer straightforward conditions with a guaranteed discount without the need to collect points. The digital card on their phone facilitates company identification at the checkout and provides the brand with an overview of B2B purchasing behavior across physical stores.

The Notino Club program credits members with 1 point for every crown spent in the e-shop and physical stores. Additionally, customers earn extra points for activities outside the shopping cart, such as writing reviews on purchased products, using online beauty applications, or booking services at salons.

By reaching thresholds of 2,500 and 5,000 points, members unlock a reward catalog where they can exchange points for full-size products, travel-size items, Discovery Boxes, or discount codes. Members also receive exclusive gifts with purchases from specific partners and cosmetic brands. The digital card in Apple Wallet and Google Wallet ensures quick scanning at the store checkout and a constant overview of their point balance.

Main program benefit for retention: Exchanging points for products and receiving gifts from specific brands acts as natural sampling. Notino motivates customers to be active and review products beyond just making purchases. The card serves as a link between online and offline data during purchases or identification at the store.

The Knihy Dobrovský Club combines standard point collection and club prices with a reward focused on visit frequency. If a club member makes a purchase in a given calendar month, either in-store or online, regardless of the amount, they will receive a selected e-book for free in the following month.

The digital card in Apple Wallet and Google Wallet ensures instant loading of the member profile when paying in-store and provides the customer with a constant overview of their point balance and current member benefits.

Main program benefit for retention: The reward tied to a transaction within a given calendar month stimulates customers to make repeat visits regardless of the current spending amount. The monthly cycle thus maintains a high purchase frequency and builds a regular purchasing habit.

The Marks & Spencer loyalty club rewards members for every purchase by crediting points. After reaching a specified points threshold, the customer receives a monetary voucher for their next purchase. In addition, members receive personalized discount offers and seasonal benefits.

The brand effectively combines its mobile app with a digital card in Apple Wallet and Google Wallet. These two solutions do not compete but support each other. The digital card on the phone is used for quick scanning at checkout and for notifications on the lock screen, which motivate the customer to reopen or download the full app.

Main program benefit for retention: The integration of the app with the digital card creates a functional synergy. The card in the mobile wallet increases the utilization rate of vouchers at checkout and also serves as a low-cost channel for promoting, downloading, and opening the mobile app.

The examples of these five retailers show that the architecture of a loyalty program always depends on purchasing behavior and assortment. Whether it's B2B discounts, product sampling, or rewards for frequency, all successful concepts share several practical elements:

The easy availability of the card on a mobile phone right at the checkout removes barriers and transforms passive registration into an actively used loyalty program.