The future of loyalty has arrived: Card-linking

Providing customers with a value-adding, loyalty-inspiring rewards scheme is a top priority for many merchants. From retaining existing customer bases to bringing new audiences across from competitors, a high-quality regards program can make a significant difference when implemented well. While traditional apps and reward services are often less than seamless, requiring extra steps for rewards, card-linking provides an alternative, automated future for loyalty programs. 

What is card-linking, how does it work, and how is it beneficial for businesses and users alike? We've covered all you need to know about the brand-new future of loyalty below:

What is card-linking?

Card-linking is a practical and effective way for merchants to track individual customer transactions directly through their choice of payment method. When a customer pays with a debit or credit card, this information is automatically linked into a loyalty system, allowing for the seamless application of credits, points, or discounts. 

Instead of requiring an account, with all the rigmarole of signing in, entering passwords, and remembering email addresses, card-linking takes all of the extra work out of the loyalty process. The second card information is provided for enrolment, that payment method is linked with a pre-existing loyalty scheme. Any cashback, discounts, and points are applied for each payment made, with no extra steps or unnecessary additional cards required.

While card-linking has other purposes outside of loyalty schemes, from budgeting apps to analytics, rewards are one place where this initiative shines. As a way to streamline a process that can be cumbersome to some users, the enrolment rates for a hands-off loyalty scheme has the potential for far higher pickup than any isolated app or additional card could achieve.

What are the benefits for users?

With many users concerned about privacy and financial protection, why would card-linking be beneficial? With more and more customers trusting in the safe storage and use of data, the convenience of card-linking far outweighs the potential concerns in most cases. Some of the most obvious benefits to users include:

'Set and forget' convenience

For users, the fewer the steps between decision and purchase, the better. Card-linking provides an easy and practical way to streamline to loyalty process by piggybacking directly onto the purchasing process with a few extra steps required. Once enrollment is complete, there is no need to continually provide additional cards or apps to benefit from a rewards scheme.

Faster, consistent rewards accumulation

The streamlined nature of card-linked loyalty schemes also allows for the faster and more consistent accumulation of rewards, providing an added benefit for the customer without any effort on their part. While loyalty cards, discount vouchers and un-updated apps can easily hinder the collection of rewards, a linked card makes it seamless to collect added value every single time the user shops with that card.

Practical for mobile and online payments

The flexibility of a card-linked loyalty scheme is as flexible as the payment method itself. With the ability to quickly tap and pay using a smartphone or smartwatch, it's even easier to gather loyalty points or rewards over time. Similarly, online payments will no longer require the entry of loyalty point card numbers or account details, making it far easier to claim rewards effectively.

Easier accessibility for acquired benefits

Once benefits have been accumulated, getting the most out of them is also a more manageable task with a card linked system. Whether the use themselves activates a discount or the merchant does it as part of their POS, it's quick and easy to take advantage of accumulated rewards than it would be with a more traditional bonus system.

What are the benefits for merchants?

For merchants, the benefit of capturing payment information at the point of purchase is invaluable in more than one way. With the seamless nature of card-linking and the ability to painlessly integrate this loyalty scheme into existing sales funnels to B2C and B2B rewards, here are a few of the benefits merchants should consider:

Seamless loyalty that's as easy as possible for customers to access

Providing a better customer experience is the first step to improving loyalty. By streamlining the whole sales process, your customers will see the benefit of your service and rewards over others in your niche. Ease of use is a key priority, and a rewards scheme that works in their favour can help to improve upon loyalty seamlessly.

Expanded usage for existing loyalty schemes

Slow pickup or low enrolment on an existing loyalty scheme can easily be turned around using the right technology. A card-linking program can allow you to both support existing loyal customers and gain new ones, allowing you to transition your existing system over to something that suits a more expansive, modern audience.

Connecting customers to broader rewards options

If you want to expand your horizons and introduce new options for your customers, using a card-linking loyalty scheme can be an effective way to do so. Without the manual effort up-front customers require, it's far easier to encourage them to buy into more complex loyalty processes that may otherwise be abandoned before completion.

What does card-linking mean for the future of loyalty programs?

Convenience is the name of the game when it comes to customer loyalty programs. Card-linking provides the ideal solution to the streamlining problem, significantly reducing the time and effort needed to complete the loyalty process for new and existing customers alike. With proper implementation, the 'set and forget' nature of card-linking is twofold. Not only do you benefit from greater uptake, but your customers also get consistent reminders of the value your brand offers.

At iGo, we're always looking to the next generation of rewards solutions. To find out more about our innovations or discuss whether our sales incentives solutions might be the right choice for you, our team is on hand to explain it all. If you want to find out more about our upcoming card-linking involvement, get in touch with us today.