Everything is going digital these days. The tiny computers we all carry in our hands –cell phones—are replacing everything including the old fashion punch card.
Merchants and small businesses are now replacing the old fashion loyalty marketing tool with a smart phone app that acts as a digital punch card.
Customers can use their phones to scan a barcode that keeps track of their purchases just like a paper punch card. Then customers can redeem the rewards set up by the company. For example: buy ten tacos, get one free.
The digital punch card system basically streamlines the program and automatically keeps track of customer loyalty rewards.
Bigger franchises have been using computerized loyalty programs for years. Places like Starbucks and Petco have to use a computer to track rewards because there are too many locations to do it any other way. However, with more companies developing affordable digital programs, even small businesses with only one or two locations can incorporate a digital punch card system for its customers.
While many programs are using the smart phone, some digital punch card systems are also coming in the form of a digital card that looks like a credit card. You can swipe the card at the register and get your instant rewards.
Small businesses like the digital punch card system because it automatically inputs customer data into the computer and can be easily linked to an online marketing campaign. Successful businesses have good customer relationship management programs. Even small companies can benefit from streamlining customer relations. Online marketing is a must these days. Businesses know their customers are online, use social media sites and all have an email address. That is why it is important to collect this data for future online marketing campaigns.
Many companies award special discounts for Facebook page “likes” or other social media recommendations. With the digital punch card program, you can track Facebook page “likes” and streamline Twitter “followers” to use for an email marketing campaign for later. There is no reason to have all those social media followers if you don’t get them back through your door as a paying customer.
Some people say there is a downside to going digital. The local shop down the street typically has a personal flair and the owner actually recognizes the regulars. There is something to be said about a bartender that randomly comps a beer or two during a night out or a sandwich shop owner naming a special sandwich after a regular customer. Small businesses have the power to be truly personal and if they go too digital some people are afraid of losing that personal edge.
However, forward-thinking, small businesses don’t have to stay in the past with paper punch cards to be personal. Creative marketers are making the rewards they give more personal and in tune with what their customers would want. They don’t have to stick with the “buy 10, get one free” offer. Many small businesses are rewarding loyal customers with perks like getting a private cooking class with the chef or the opportunity to sample of a new product before it is available to the public.
Basically, loyalty marketing is not going anywhere. The punch card concept is a proven form of loyalty marketing and can help businesses stay connected to customers. If they stay connected, customers keep coming back. The paper punch card might be going out of style but the concept of the punch card is just changing its image a little.
