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Dematerialization of Loyalty Cards: The Future of Loyalty Programs

Card-Linking Technology

According to the research entitled ” Retailer Loyalty: Card-Carrying Consumer Perspectives on Retail Loyalty-Program Participation and Perks “, conducted on a large sample of consumers, 74% of the interviewees actively participate in a Loyalty Program. This data confirms the importance that loyalty programs have assumed in the marketing strategies of companies and the daily lives of consumers.

An even more surprising fact emerges from the Italian context, where 62% of consumers prefer to buy from stores that offer loyalty programs. This means that companies that invest in Loyalty Programs are attracting and retaining customers in a highly competitive market.

But what is the main motivation that drives consumers to participate in Loyalty Programs? According to the research, 60% of respondents say that these programs are the main reason for continuing to purchase from a particular brand. This underscores the importance of creating effective and attractive programs to maintain a loyal customer base.

Another interesting aspect concerns the use of traditional plastic cards in Loyalty Programs. Despite the digital age we live in, 79% of respondents say they still use physical cards. However, one fact that stands out is that most of them own more than 10 cards of this type. This situation raises the question of the efficiency and practicality of traditional plastic cards.

To solve this challenge, many companies are increasingly moving towards dematerializing Loyalty cards, through proprietary apps or integrations with smartphone wallets. An innovative solution already exists, and it is called card linking.

Card Linking allows consumers to access their loyalty programs directly through their payment card, but also from their smartphone or mobile device, avoiding the need to carry a series of physical cards.

This solution eliminates the need to present a loyalty card or specific app physically, further simplifying the customer experience and encouraging active participation in Loyalty Programs.

Card Linking technology is one of many innovations that can improve the effectiveness of loyalty programs, demonstrating once again how important it is to keep up with digital evolution for companies that want to maintain customer loyalty.

The Omnio Europe solution

In this context, Omnio Europe emerges as a strategic partner for companies that want to address this transformation effectively.

Omnio Europe offers cutting-edge solutions for managing Loyalty Programs and redeeming Rewards, simplifying the consumer experience and allowing companies to strengthen their relationships with customers. The Omnio Loyalty Engine platform allows you to use Card Linking technology to connect a customer identifier to a card with a bar code (which can be a payment card, but also a personal identification card), and connect to it one or more Loyalty Programs to which he is enrolled.

Market data tells us that Loyalty Programs are a key element in the strategy of many companies and that the dematerialization of loyalty cards is a step forward towards a more convenient user experience.

Omnio Europe is ready to help companies seize this opportunity and create cutting-edge programs that will win consumer loyalty in an increasingly digital world. Contact us for more information.