Digital loyalty guide

Plan a loyalty programme that fits your business.

Compare card types, understand the costs and plan a programme customers will want to use. Practical guides, examples and tools before you choose a platform.

Understand the category

Start with the reward.
Then choose the card.

Digital loyalty cards replace the card in a customer’s pocket, but the programme still needs a reason to return. Decide what earns a reward, what that reward is worth and how staff will recognise an eligible purchase.

This guide helps you compare the choices before buying software. The examples are illustrative, and the planning tools work without an account.

Stamps for repeat visits

A fixed number of qualifying purchases unlocks a reward. A café could offer a drink after eight paid coffees. Define which purchases count and whether a free item can earn another stamp.

Read the stamp-card guide →

Points for varied spending

Customers earn a balance and exchange it for rewards. This can accommodate different basket sizes, but the value of a point should be easy to understand.

Compare points and stamps →

Vouchers for a specific offer

A voucher represents an offer with a defined redemption rule. It can support a promotion, but it is not a substitute for a repeat-visit programme on its own.

Plan a digital voucher →

Compare formats

Paper, wallet or a dedicated app?

There is no universal winner. Compare the steps your customers and staff will actually take, along with the costs and control each option gives you.

DecisionPaper cardWallet-based cardDedicated app
Getting startedHand over a printed card.Open a link or scan a code; save to a compatible wallet.Install an app and follow its registration flow.
At the counterStaff stamp or mark the card.Staff scan the pass or use the provider’s redemption workflow.Use the app’s scanning, ordering or checkout flow.
What to checkLost cards, print costs and consistency of manual stamps.Wallet compatibility, permissions, reporting and any scanning or integration requirements.Download friction, maintenance, accessibility and whether the extra app features are useful.
When to consider itA small, straightforward pilot with few reporting needs.A programme centred on an accessible card, without a separate loyalty-app download.A broader customer experience that also needs ordering or other app features.

Plan before you launch

What will your reward cost?

A free item has a cost to your business, not just a menu price. Use this simple stamp-card example to compare rewards before choosing your rules.

Reward cost / qualifying sales

3.13%

£1.25 reward cost against £40.00 in qualifying sales.

Formula: reward cost ÷ (average purchase × required purchases) × 100. Assumes every earned reward is redeemed. Excludes the cost of qualifying purchases, software fees, tax and staff time; it does not estimate profit or additional visits.

Implementation guide

A launch checklist your staff can use.

  1. Write one clear offer. Specify the qualifying purchase, reward, exclusions and expiry. Ask someone outside the business to explain it back to you.
  2. Check the economics. Use your cost of providing the reward, not just its selling price. Allow for software, staff time and fulfilment.
  3. Test both customer journeys. Try enrolment, saving the card and redemption on the devices your customers use. Keep an alternative for customers who cannot use a wallet.
  4. Agree staff permissions. Decide who can issue rewards, correct mistakes and view customer information. Run through a duplicate redemption and a lost-phone scenario.
  5. Explain data use. Ask only for information you need and make any marketing choice clear. Check the provider’s privacy and retention controls.
  6. Measure the pilot. Record participation, repeat purchases, redemption and reward cost. Review the results before expanding the offer.

Keep exploring

Choose the next question to answer.

Digital loyalty cards, explained.

What is a digital loyalty card?

It is a digital record of a customer’s rewards or membership. A wallet-based card lives in Apple Wallet or Google Wallet; other programmes use an app or a web account. The card format and the reward rules are separate choices.

Does every digital loyalty programme need an app?

No. Wallet-based programmes can use a link or QR code to let customers save a pass to a compatible wallet. An app-based programme requires its own app. Check device compatibility and your customers’ signup experience before choosing.

Should I reward visits or spending?

Visit-based stamps are easy to explain when purchases are similar. Spend-based points can suit varied baskets, but customers need a clear earning rate and redemption value. Choose the behaviour you want to encourage before choosing the technology.

Will switching from paper increase repeat visits?

A digital card can make a programme easier to access and administer, but it does not guarantee additional visits. Track enrolment, repeat purchases, reward redemptions and reward cost, and compare them with your starting position.

How is DigitalLoyalty.com related to Carrott?

DigitalLoyalty.com is our category guide for businesses planning loyalty programmes. Carrott is the product we recommend for creating and managing wallet cards. Our recommendation is not an independent ranking of providers.

Our recommended platform

Ready to put your plan into practice?

Carrott provides the tools to create and manage wallet-based loyalty cards. Visit the product site for its workflow and current plans, or start creating a card in the app.

DigitalLoyalty.com and Carrott are connected brands. This guide recommends our own platform; it is not an independent endorsement.

Create your card Explore Carrott’s platform →