So you're looking to improve customer loyalty, huh? Well then, let's get to the point. On average, loyal customers spend 60% more per transaction, buy 90% more often, and are 5x more likely to return to your business. Crazy, right? Those stats right there should be convincing enough to get you to pull the trigger. However, that's not why you're here. You're here because you need to know if you should use the traditional punch card system to get the job done. So, let's answer that question.

Answer To That Question


Now, I know you're probably thinking something like "Hey man! I've used punch cards for years and get tons of traffic. Who are you to say they don't work!" But just hold on, I never said they don't work. In fact, they do work - and they work pretty well. The question I'm answering is if you should be using them. And again, the answer is no.

Here's Why

With technology as advanced as it is, it's probable for the once timeless punch card to come to an end. We are in a new age of customer experience where the consumer has higher expectations than ever. They want experience, high quality, custom personalization - all things that the punch card lacks. But it doesn't stop there. Here are the top 3 reasons why you should go another route to increase customer loyalty:


Odds are, you're targeting millennials & Gen Zers - which is great! They've got the most spending power out of any generation. But you know what else they got? Smartphones, laptops, and anything else with a screen. Most of them don't even know what life without the internet was like. They are used to this now. It's part of their day to day. If you want to keep up with them, you need to think technology first, paper never.

This guy gets it.


"It's just a tiny piece of paper, how inconvenient can it be?" Well, to millennials, the answer is very inconvenient. Remember, at times they are referred to as the convenient generation. And on top of that, 43% of them say carrying a card is their top frustration with loyalty programs. But if that's not enough, here's a real life, personal story that really illustrates my point.

It's a Saturday morning and I'm about done cleaning out my wife's car. Just as I'm finishing up, I open up the glove department to find that I wasn't even close to finishing. Old receipts, broken pens, useless cards, etc. just littered the glove department. My first thought was to empty the whole thing into the trash. After all, this stuff looked like it hadn't been touched in months. However, trying to be a decent husband, I started going through it carefully so I wouldn't throw anything away that my wife would later need.

So I started separating everything into a keep pile and a trash pile. As I was about halfway in I found my first keep pile item. It was a loyalty punch card from Soda Tsunami, a local soda shop nearby. It was stamped 6/10 times so I figured I'd keep it to save some money. As I kept going, I found another Soda Tsunami punch card, this time stamped 7 times! So I put that one in the keep pile also figuring that she'd use it eventually. But then I found another one...and then another one...and then two more...and then three more! I couldn't believe it!

I ended up finding 9 loyalty punch cards to Soda Tsunami in total. And here's the kicker, each one was stamped more than 5 times each. She literally could have had 5 free drinks!

When I went inside with the 9 punch cards to show my wife, she laughed and said she totally forgot how many she had and that I could just throw them away.

The end.

There's a lot to learn from that story. However, the point is that she only used the punch card if it was convenient for her. And if it wasn't convenient for her, she just got another one because it was the easier option. This shows that either she really doesn't care about filling it up or she doesn't think it's worth it. But if one thing is certain, once that card went into the glove department, it was over.

What's even crazier about this story is that my wife is probably one of their top customers. She'd been over 45 times in just a few months. That means even their most loyal customers, who would benefit the most from it, didn't even think twice about it - the saw no value. But no matter the reason for that, something needed to change there to increase convenience and ease of use.

Lack Of Data

Good, strong data drives better decisions, solves problems, and helps business owners understand their target audience. In today's market, it's crucial to invest in software that tracks key analytics and other important metrics.

Saying the punch card lacks in data is an understatement. It almost tracks no data at all! It is impossible for it to compete with modern loyalty programs that are able to track important data that can help drive more business. Imagine being able to know the lifetime value of a specific customer, or how often customers come in and at what times. With data, all this is possible and more. Without it, it's the 80's again.

So What's The Alternative?

Alright, before I get into the alternative, I'm sure some of you are thinking, "Ya well that's great and all dude, but punch cards are the only cheap option out there. I can't afford the alternative. My hands are tied!"

Your hands are not tied. There are other options just as cheap and easier to implement! Just hold tight and I'll explain.

The Digital Loyalty Program

Modern, convenient, and data-driven - the digital loyalty program is a complete no brainer for all companies looking to improve customer loyalty. It has unlimited customer data and grabs your customers attention for you. And after all, most of your customers want you to have one - 86% percent of them to be exact!

There are many companies out there that have great software to make this happen for your company. There are also companies that have a freemium pricing model so smaller businesses can afford it as well. Depending on the company, it shouldn't take too long to set up either. It is a very small investment of time for a very big ROI.


So no, you shouldn't use the traditional punch card system. It's not necessarily because they don't work - because they do, but its that there is a way better option that works a whole lot better.  

Like I said before, we are in a new age of customer experience where the consumer has higher expectations than ever. They want experience, quality, and custom personalization. And the digital loyalty program does all of that and more!

Now don't just take this and leave it, go do some research to find the best digital loyalty program for you. Get started soon and move fast! If you have any questions or need help at all, reach out anytime!