loyalty program app

How to Use a Loyalty Program App for Your Business [+ 4 Tools]



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loyalty program app

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Small businesses know that customer loyalty is essential, but showing consumers you appreciate them can be challenging. There is a solution you can embrace: a loyalty program app.

According to research, 86% of American shoppers state that a loyalty program influences them to purchase again from a brand. These programs make 60% of global shoppers more loyal to a business. They receive customer rewards that reduce the price of their favorite products or services or get gifts.

Rewarding customers is the go-to tactic to encourage them to keep returning to your small business. They forget about your competitors when you give them value and a reason to stay.

You might think a loyalty program app is expensive and time-consuming, but it isn’t. You only need an advanced customer loyalty platform to launch your own loyalty program.

PassKit is a loyalty platform provider that allows you to create digital membership cards, coupons, and loyalty cards for businesses. Customers can access their loyalty cards on their mobile wallets, such as Google Pay and Apple Wallet. It makes it convenient and easy for customers to keep track of their loyalty cards and redeem rewards when necessary.

To see how PassKit works, start your 45-day free trial now!

In this article, we will share all the necessary details about the loyalty program app and provide you with a list of the four best customer loyalty apps on the market that you can use today.

Let’s begin by defining a loyalty program app.

What is a loyalty program app?

PassKit loyalty card

A loyalty program app allows customers to interact with your loyalty program using digital loyalty cards and mobile devices. It removes the need for paper or plastic cards commonly used in traditional loyalty programs.

The loyalty program app enables consumers to earn points, vouchers, and other incentives. 

When they collect enough points, customers can unlock discounts, access limited edition products, or even get gifts. It makes it easy and convenient for consumers to save money and get the most out of their shopping experience.

How does a loyalty program app work?

loyalty program app

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A customer loyalty app makes it easy to take advantage of the benefits. How does it work? Let’s explain.

When customers visit your business and purchase products, they show their phones to your employees to scan the QR code. 

Your loyalty program app records a new transaction and increases customers’ points balance on the loyalty card. When customers reach the point threshold, they can get a reward.

Loyalty programs are an excellent way for small businesses to keep their customers returning. Customers are encouraged to continue spending money with the company by receiving rewards for every purchase. 

The amount of points they collect depends on how much money they spend, so it’s a win-win situation for both the customer and the business.

What are the benefits of creating customer loyalty programs?

Loyalty programs bring various benefits to the table. Here are the main ones:

  • Eliminate paper or plastic cards – consumers are more likely to forget their wallets than smartphones. It is one of the reasons why so many use Google Wallet or Apple Wallet nowadays. According to research, 70% of consumers prefer to use mobile apps to access their loyalty accounts.
  • Improve customer engagement – loyal customers want to interact with your brand, so you must connect with them on all brand touchpoints. A loyalty program allows you to send them marketing emails and targeted messages that boost customer engagement. 
  • Increase customer retention – existing customers should be your top priority. You can make them stay with attractive incentives. A successful loyalty program improves customer retention by telling consumers that you put them first.
  • Boost customer loyalty – consumers stay loyal to small businesses that give them value. They won’t think about other brands when you offer rewards for repeat purchases.

Let’s discuss the popular loyalty program types and how to use them in your business.

4 types of customer loyalty programs that boost your business

customer loyalty program types

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Companies run customer loyalty programs with various incentives. Here is what you can try to boost your customer loyalty and receive positive customer feedback:

  1. Point-based loyalty programs – this is a widespread type. Customers gain reward points for every purchase they make. The amount of points depends on the cost of their purchase. When they accumulate enough points, they receive a reward.
  2. Tiered programs – offer different benefits to customers depending on their spending level. The more a consumer spends, the higher the rank they achieve. It increases customer engagement because they want to be part of an exclusive tier.
  3. Value-based programs – the best reward customers can get are from socially responsible businesses. Engage customers by offering them a chance to donate. For instance, they can donate their $5 to a specific cause.
  4. Subscription-based programs – a subscription-based rewards program imposes a monthly or yearly fee to members. Once they pay, they get access to benefits like free shipping.

Now that we know the loyalty rewards program types, let’s see which rewards you can offer.

5 types of rewards you can offer through a loyalty program app

We’ve compiled a list of the most popular rewards to offer existing and new customers:

  1. Free products – everyone likes free goodies. The possibility of getting such a reward can encourage customers to repeat purchases.
  2. Discounts – we suggest you offer discounts to nurture customer loyalty. Consumers have a favorite product or service and appreciate buying them at a lower price.
  3. Birthday gifts – PassKit asks customers for their birthday when they add their cards to Google Pay or Apple Wallet. Use this information to remind customers you care about them on their special day.
  4. Free shipping – your loyal customer base deserves to order products with free shipping. You can impress them even more by including express delivery.
  5. Limited products – giving limited products boosts customer retention and encourages them to join your loyalty rewards program.

As you can see, defining your rewards can be a fun process, but it can be challenging to know what your customers want without appropriate data. Let’s discuss this in more detail.

Is it possible to track customer data with a loyalty program app?

Paper cards offer no customer data. It’s easier to monitor consumer trends with loyalty reward cards.

Engaging with consumers and keeping repeat customers close to your business is crucial. That means you must know their name, preferences, and buying frequency. You can then offer loyalty points and rewards tailored to consumers.

PassKit integrates with your POS and CRM to help you boost customer retention and engagement. We collect data that give you a clear picture of your buyers. The data allows you to send targeted messages and push notifications and improve loyalty campaigns.

Try PassKit now!

How much does it cost to use a loyalty program app?

The cost of building a custom loyalty rewards app is high. You need to cover the expenses of the IT, UX, and design teams to develop your app. The invoice can be up to thousands of dollars high. 

Is there a cost-effective solution?

Creating loyalty cards for businesses is easier when you use customer loyalty platforms like PassKit. You don’t have to hire IT or design teams to launch restaurant loyalty programs, airline loyalty programs, beauty rewards programs, or others.  

You also don’t need designing or coding skills to use PassKit, and it has a short learning curve. Instead of paying for custom app building, you just need to pay an affordable monthly subscription. You can see all details on the Pricing page.

Are there any hidden fees associated with loyalty program apps?

No hidden fees exist when you launch a loyalty mobile app. You pay upfront for using the services that enable you to create your mobile app. The subscription gives you access to features like advanced analytics and a multichannel distribution system.

Let’s now learn which steps you must follow to start with your loyalty mobile app.

How to start with a loyalty program app

mobile payment

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According to research, top-performing loyalty programs can increase revenue by 15% to 25% annually when customers redeem reward points. Whether running hotel loyalty programs or others, it won’t take long to see that you made a good choice.

Small businesses should follow some steps to start with loyalty mobile apps. Let’s discuss each of them.

1. Decide what kind of loyalty program you would like to create

You must first decide on the program type to choose the best loyalty program app. We previously discussed some customer loyalty ideas, so choose the one that best fits your needs and plans.

In most cases, business launch a point-based system to boost customer loyalty. This customer loyalty program rewards people for every dollar spent. It helps them to accumulate loyalty points quickly and enables companies to reward them instantly.

2. Choose a loyalty program app

The market is brimming with loyalty card solutions. You have many options, but you must choose wisely. Not every loyalty program app comes with the same features or benefits. You should research every app and create a list of pros and cons. 

What are the best loyalty mobile apps? The ones that make launching a customer loyalty program easy and less time-consuming.

For instance, a digital solution like PassKit lets you build and design a loyalty program in minutes. You can spend less and still get a chance to retain existing customers and acquire new ones. Start a 45-day free trial to evaluate all features.

3. Create an account and add your business information

Let’s say that you chose your go-to loyalty mobile app. The next step is to sign up and add your business information. The details may include

  • Company name
  • Owner
  • Company industry
  • Contact number
  • Email address
  • Number of employees

That’s it! You’re ready to start.

4. Set up your loyalty program rules

Every customer loyalty rewards program comes with terms and conditions. You must set up yours as well. Customers will follow the rules and know when and how to redeem their rewards. If an issue arises, you can always quote the regulations when a customer uses a loyalty card.

Here are some of the things you should cover:

  • Earning rules
  • Rewards redemption rules
  • Minimum points for redemption
  • Discount terms and conditions
  • Gift rules

Protect your business with terms and conditions!

5. Add your loyalty program members manually or automatically

Perhaps your consumers earned loyalty points with paper or plastic loyalty cards. 

If you have a record of existing members, you can add them to your loyalty card app manually or automatically. For instance, you can import the list into loyalty software. It saves you time and lets you focus on other essential tasks.

6. Upload your company logo and other marketing materials

Customers must associate the loyalty card with your business. Even if you use a loyalty card template, you should customize it to fit your brand. 

Here is what to include in the design:

  • Company logo to ensure you’re recognizable
  • Relevant images to make the loyalty card more eye-catching
  • Add colors and shapes that reflect your brand identity

Although you’re not creating physical cards, your digital passes should seem familiar to customers. People who access the cards on their mobile devices should see your brand’s signature style.

7. Start offering incentives and track your progress

Customers use loyalty programs because of incentives. If the rewards system doesn’t exist, they likely wouldn’t even join. So, your job is to come up with attractive benefits.

You can surprise current and new customers with a variety of incentives. From free shipping to discounts, the possibilities are endless.

You should also remember that customers either purchase in-store or online. Take advantage of this and create a separate benefit for each channel.

We listed the seven essential steps to follow when building a loyalty app. Let’s now see our choices for the best loyalty program apps and how we picked them.

Our evaluation parameters for loyalty program apps

We selected four loyalty program apps according to the following criteria:

  • Pricing
  • Free trial
  • Features
  • Intended audience

We’ll dive deeper into each loyalty software tool below. Continue reading to learn more about our top picks.

What are the best loyalty program apps?

Making membership cards, loyalty cards, or coupons available on a loyalty app is much easier. Here are four tools that can help you:

  1. PassKit
  2. Loopy Loyalty
  3. TapMango
  4. Square Loyalty

Let’s discuss the features and benefits of each solution to help you make your decision faster.

1. PassKit

PassKit customer loyalty platform

PassKit is a SaaS product that aims to help you increase loyalty, user retention, and sales. It allows you to convert physical cards and coupons into digital cards. You can create a loyalty program and deliver it to customers’ mobile wallets in just a few minutes.

Our mission is to help you develop a connected customer experience. There should be no gap between your online and offline business. Regardless of shopping preferences, customers want a unified experience on all digital channels. 

With PassKit, your loyal customers can carry digital cards wherever they go. They don’t have to download another app – their digital wallets do all the work. A quick scan of the QR code on their cards logs their transaction and registers points they can redeem for rewards.

We also offer seamless CRM and POS integration. You don’t have to replace the current software you use in your business. PassKit is simple to use even if you’re not tech-savvy.

The best part? You can provide a contactless shopping experience to your customers and follow the trends. 

Intended audience

PassKit is suitable for small and large businesses. If you own fitness centers, coffee shops, restaurants, nail salons, or similar, PassKit delivers your customer loyalty program to frequent visitors.


PassKit should be your go-to loyalty program app because:

  • It’s contactless, which makes it a perfect solution during the COVID-19 pandemic
  • It’s paperless, so you can show customers that you’re a socially responsible business
  • It’s easy and fast to set up and doesn’t require complex hardware to work
  • It offers advanced analytics that shows you details about your customers and loyalty program usage
  • It comes with CRM and POS integration
  • It provides loyalty card templates to help you design faster
  • It gives you access to permission-based marketing to remind customers of your brand

Free trial

Yes, you can start a 45-day free trial to assess all features.


You can choose from two billing models: 

  • Multi-use passes
  • Single-use passes

The price depends on the number of loyalty cards and members. For instance, 250 members mean that you would pay $39.50 for PassKit.

2. Loopy Loyalty

Loopy Loyalty customer loyalty platform

Loopy Loyalty is a platform that lets you create and manage digital punch cards. Customers access their cards using Apple Wallet or Google Pay. It is much easier to track rewards customer spending that way.

When customers collect enough punches, they get rewards. For instance, they get a free coffee, haircut, meal, or similar.

Loopy Loyalty lends a helping hand to businesses that want to retain customers and encourage repeat purchases. Nothing makes people spend more often than rewards!

Intended audience

Loopy Loyalty is perfect for small businesses like bars, restaurants, coffee shops and hair salons.


Here is what makes Loopy Loyalty stand out:

  • It allows quick access to digital stamp cards thanks to integration with mobile wallets
  • It enables you to promote your loyalty program through unique URLs and QR codes on email, SMS, website, or social media
  • It sends location-based marketing messages to customers when near your business
  • It tracks and shows real data on the ROI of your digital loyalty program

Free trial

Yes, the platform comes with a 15-day free trial.


Three subscription plans are available:

  • Starter – $25 per month
  • Growth – $69 per month
  • Ultimate – $95 per month

3. TapMango

TapMango customer engagement platform

Image source: GetApp

TapMango is a cloud-based customer loyalty platform. It provides the tools you need to launch a branded mobile device app. It also keeps track of points, rewards, offers, and deals.

The platform also helps you manage campaigns to increase your audience base. TapMango sends promotions and discounts to customers via email marketing, push notifications, and SMS. That way, no one forgets about your customer loyalty program.

Intended audience

Small and medium-sized businesses can use TapMango to launch loyalty programs.


Here are the reasons why TapMango is on our list:

  • It sends automated surveys to customers and publishes reviews online
  • It delivers promotions to customers to remind them about your brand
  • It allows you to create “happy hours” for consumers where products are on sale for a specific time frame

Free trial

No, the platform doesn’t offer a free trial. However, you can book a demo to see the app in action.


The pricing is available upon request and depends on your business needs.

4. Square Loyalty

Square Loyalty platform

Image source: Source Forge

Square Loyalty is a digital rewards program that lets you customize, promote and manage your loyalty program. It integrates directly with your POS. Every customer you enroll becomes a member of Square Loyalty automatically.

The software comes with advanced analytics that tracks things like

  • Loyalty rewards
  • Total number of customers
  • Top loyalty customers

Using the data, you can provide a more personalized customer experience to each consumer. 

Square Loyalty also enables you to engage consumers. It sends automated text messages informing people of their points and rewards.

Intended audience

Square Loyalty is a good option for both small and large businesses. It has experience in food & beverages, fitness, health, retail and other industries.


Let’s take a look at the advantages of Square Loyalty:

  • It tracks sales and the loyalty program performance
  • It has POS integration
  • It comes with Customer and Loyalty APIs to allow you to create a rewards system

Free trial

Yes, the platform offers a 30-day free trial.


The pricing depends on the number of visits:

  • 0-500 visits – $45 a month per location
  • 501-1,500 visits – $75 a month per location
  • 1,501-10,000 visits – $105 a month per location

Loyalty program apps: A short overview

Let’s look at a comparison table of the four loyalty software solutions.

SolutionFree trialPricingAudience
PassKitYes, 45 daysDepends on the number of loyalty cards and membersSmall and large businesses such as coffee shops, pubs, restaurants, nail salons, etc.
Loopy LoyaltyYes, 15 daysStarter – $25 per month
Growth – $69 per month
Ultimate – $95 per month
Small businesses like bars, restaurants, coffee shops and hair salons.
TapMangoNo free trialAvailable upon requestSmall and medium-sized businesses.
Square LoyaltyYes, 30 daysFrom $45 to $105Small and large businesses

If you’re looking for only one solution, we suggest PassKit. Let’s see why.

5 reasons to choose PassKit

PassKit Pass Designer

Why should you choose PassKit? Here are the top five reasons:

  1. It increases customer retention
  2. It boosts brand awareness and loyalty
  3. It automates rewards management and tracking
  4. It helps you personalize offers
  5. It is affordable and reduces your marketing costs

Loyalty program app: Wrapping up

A loyalty program app brings your business closer to customers. They spend their hard-earned money on your products or services, so giving them a discount or reward will increase their loyalty. They won’t likely choose a competitor when they have all they need with you!

Building a custom app takes time, effort, and, most importantly, much money. But you shouldn’t lose hope because there is PassKit – an affordable all-in-one digital loyalty program solution. We collect customer data, send targeted messages to consumers and help you increase sales and loyalty.

Sign up now!

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