The end is nigh for the loyalty card

Most of us carry at least four or five loyalty cards around with us in the hope of getting an odd free coffee or sales discount, but according to one expert, they are soon to be consigned to history.

Whilst loyalty cards have been used for centuries to nurture repeat custom, they are now falling out of favour with more than a third of people and will soon be replaced by sophisticated WiFi systems, a technology expert has predicted.

Steve D’Arcy, Head of WiFi at Daisy Group, said: “Now that contactless payment is growing in popularity, consumers are less inclined to start fishing loyalty cards out of their wallets at the checkout.

“What they are interested in, however, is free WiFi which presents a real opportunity for retailers. Modern WiFi systems can now recognise a customer’s smartphone or tablet device, keep track of how many visits they make to a store and welcome them back each time they return with a welcome message and an appropriate promotional offer when they arrive.”

Many retailers are now recognising the benefits of using technology to improve the user experience and subsequently increase brand loyalty. Starbucks, for example, is now encouraging customers to pre-order their coffee via an app to speed the purchase process up even more. 

Steve D’Arcy added: “Why on earth would people want to carry a wallet-full of cards around and have to fiddle around at the checkout, if they can simply walk into a store and have an offer delivered to their smartphone screen before they even reach the counter?

“Retailers need to recognise that consumers are being faced with a wall of noise from different brands and if they don’t embrace the benefits that technology can provide, they will find their customers’ attention will be diverted elsewhere.”

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