Loyalty cards are stuck in the past

Consumers have embraced smartphones for almost every part of their daily lives, but loyalty programmes are stuck in the past, with shoppers often having to carry cards or search through apps to access their rewards. As technology has changed the way people bank, shop, travel and communicate, consumers are increasingly expecting the same convenience fromloyalty programmes. Byron Rode, founder and CEO of (my)cards, part of Glynt, said loyalty programmes need to catch up with the digital lifestyles consumers have adopted.

“Consumers no longer judge loyalty against another retailer’s loyalty programme. They compare it with the best digital experiences they have every day,” Rode said. The smartphone has become the device many people rarely leave home without.

It is used to make payments, order groceries, book flights, hail rides, access banking services and book medical appointments. However, despite this digital convenience, many shoppers carry physical loyalty cards or move between different retailer apps to find the right programme. Rode said this is increasingly out of step with how consumers live.

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“When the most annoying part of shopping is looking for your rewards card, you know it’s time for an upgrade,” he said. Loyalty programmes have become an important part of household spending, particularly as consumers face pressure on their budgets. Rewards and points can help shoppers stretch their money further, while retailers use loyalty programmes to encourage customers to return.

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