Statistics suggest the current generation of consumers feel they are less loyal to brands than previous generations; and while that seems to rule out the effectivity of a loyalty program, nothing could be further from the truth.

Because consumers today are easily swayed in their purchasing preferences, employing a customer loyalty program is crucial for a business to keep customers coming back – because it’s far cheaper to keep customers than to find new ones.

The key lies is creating the right program. Traditional card-based programs are well-known and familiar to all, as we have seen them in grocery stores, car washes, cafes and restaurants. But, does this type of program work in a marketplace that is rapidly succumbing to the digital world? In some cases, yes. We have taken a look at both card-based and digital rewards programs to give you a better idea of what may work best for you.

Card-Based Rewards


    • Easy to implement: merchants create punch cards and distribute them for free.
    • Simple: easiest way to design and launch a loyalty program
    • Straightforward to use: Consumers get punches for visits. Rewards issued based on the number of punches.
    • Inexpensive: good program for businesses with limited resources.


    • Lack of Data: card-based programs lack support for data analysis on customers, which means marketing and rewards cannot be targeted.
    • Often Forgotten: cards get lost and are often forgotten. That means a card that’s half-punched may go unused, rendering the program useless.
    • Requires Active Engagement: card-based programs require the consumer to pull out cards, get them punched or stamped and remember to redeem them. This forces customers to drive the program, not the business.
    • Fraud Prone: It doesn’t take much to create counterfeit stamp cards – case and point Subway.

Digital Rewards


    • Smarter Marketing: businesses can track customer purchases and redemptions, providing the ability to target offers based on customer behavior. This promotes a more personalized consumer experience and strengthens the merchant-consumer relationship and loyalty.
    • Easier to Use: imagine being able to walk into a restaurant and have all your purchases tracked and counted, so you can earn and redeem reward points without digging in your pockets for cards. Consumers and businesses both benefit because the system is automated.
    • Efficient: digitally-powered reward systems are empowered with data that helps drive smarter decisions and allows businesses to send out specials to smartphones that are likely to be read.


    • Requires Changes: digital rewards programs are still new and have not found their way into the hands of some consumers. But, this is changing. As more consumers execute consumerism from mobile devices, the demand for digitally-based rewards programs is rapidly growing.
    • New: this may be unfamiliar ground for businesses. However, once a business pilots a simple, yet powerful, program, such as the one provided by Jayu, they will see the benefits.
    • More Costly: Digital reward programs require digital devices, which are more expensive than stamp card programs.  However, the costs for a digital solution is may surprise many; plenty of stores have already moved over to tech programs.

Now, it’s up to You

On the surface, it may seem that a card-based system, even one that is supplemented with smartphone technology, is the right choice. However, considering that consumerism is moving more towards full digital access, it makes more sense to go with a digital rewards program.

This technology is making strong strides in applicability, and taking advantage of a system that is easy to adopt now, like the one offered by Jayu, will put you ahead of your competition and help you capitalize on the massive potential a successful digital rewards program can offer.