Understanding Loyalty Cards
Points-based loyalty programs for customers and businesses
Loyalty cards are the core of points-based rewards programs. Customers earn points with each purchase, accumulate them over time, and redeem them for rewards.
What Are Loyalty Cards?
Loyalty cards are digital reward programs where customers earn points based on their purchases. Unlike stamp cards (which have a fixed goal), loyalty cards let customers accumulate points continuously and choose from multiple rewards at different point levels.
Think of them like:
- Airline miles programs
- Credit card rewards
- Coffee shop points systems
How Loyalty Cards Work
For Customers
- Collect a card — Add a business's loyalty card to your wallet
- Make purchases — Shop at the business as normal
- Earn points — Show your QR code at checkout to earn points
- Accumulate — Points add up over time
- Redeem rewards — Exchange points for rewards when you're ready
For Business Owners
- Create a card — Design your loyalty program
- Set earning rules — Define how customers earn points
- Create rewards — Set up what customers can redeem
- Train staff — Show them how to award points
- Track performance — Monitor engagement and redemptions
For Staff
- Scan QR codes — Identify customers at checkout
- Award points — Enter purchase amount to calculate points
- Process redemptions — Fulfill reward claims
- View history — Check customer balances when needed
Points vs. Stamps
Loyalty cards (points) and stamp cards serve different purposes:
| Feature | Loyalty Cards | Stamp Cards |
|---|---|---|
| Progress | Open-ended | Fixed goal |
| Earning | Points per purchase | Stamp per visit |
| Rewards | Multiple options | One reward per completion |
| Balance | Accumulates continuously | Resets on completion |
| Best for | Long-term engagement | Quick wins |
Many businesses use both to maximize engagement.
Key Concepts
Points
Points are the currency of loyalty cards. Customers earn points based on:
- Fixed amount: Every purchase earns X points
- Percentage: Earn 1 point per $1 spent
- Custom rules: Special promotions or bonuses
Rewards
Rewards are what customers redeem points for. Options include:
- Free products: "500 points = Free coffee"
- Discounts: "1000 points = 20% off"
- Experiences: "5000 points = VIP event access"
- Gift cards: "2500 points = $25 credit"
Tiers
Some programs have membership tiers that unlock better benefits:
- Bronze: Standard earning rate
- Silver: 1.25× points on purchases
- Gold: 1.5× points + exclusive rewards
See Membership Tiers for details.
Getting Started
For Customers
- Collecting Cards — Add cards to your wallet
- Earning Points — How to accumulate points
- Redeeming Rewards — Exchange points for rewards
For Business Owners
- Creating Cards — Design your program
- Managing Rewards — Set up redemption options
- Membership Tiers — Create VIP levels
- Analytics — Track performance
For Staff
- Scanning Codes — Identify customers
- Awarding Points — Process transactions
- Processing Redemptions — Fulfill rewards