Loyalty programs: The customer doesn't want any more physical cards.

One of the goals of omnichannel is to add value to the business and the customer through personalized experiences that increase engagement with the brand. Loyalty programs are one of the ideal tools to achieve this. However, if we analyze the most common loyalty programs, we find a significant gap between customer expectations and what they actually receive. According to a study conducted by the digital analytics firm Incisiv and Punch, a loyalty service provider, half of U.S. customers believe that loyalty programs do not provide much value. Considering that customers who subscribe to these programs interact with the brand up to 70% more than those who do not, it becomes evident that this is an important tool for customer retention and brand satisfaction and advocacy, and therefore, we are facing a significant problem. 

What customers expect from loyalty programs

Among the data from the Incisiv and Punch report, we can highlight the following: 70% of customers prefer to manage their loyalty programs through apps. In contrast, only 26% of the top 150 retailers and restaurant chains have a dedicated loyalty app. 67% of customers expect surprise gifts. However, only 28% of retailers and restaurant chains send gifts, offers, or discounts on special occasions. 75% prefer instant discounts or refunds. This is perhaps one of the least fulfilled expectations, with only 16% of retailers and restaurant chains offering instant discounts on purchases instead of reward points. And finally, 72% expect personalized rewards. Here, the sector responds with 48% offering some type of personalization.  

Physical cards vs virtual cards

The truth is that the public is already tired of physical loyalty cards. And this is not something new; it has been happening for years. Almost no one likes to carry a wallet full of different cards from all the stores we visit. In fact, according to Incisiv and Punch, 43% of American shoppers say that physical cards are the biggest obstacle to claiming rewards. In reality, 57% prefer to participate in loyalty programs on their mobile phones, with virtual cards or apps. That said, if you are considering implementing a virtual card for your loyalty program, remember that it should incorporate more possibilities than just a simple physical card. Omnichannel offers more opportunities; customers will appreciate it, and so will your business. In fact, it is very likely that, according to the study's data, more than 70% of users will participate in a loyalty program that provides access through virtual cards.