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The Power of Loyalty Cards as Marketing Tools: How Perkstar Turns Social Media into a Goldmine

Jan 7, 2025

In a world where attention spans are shorter than TikToks, businesses are waging war for consumer eyeballs. The weapon of choice? Marketing strategies that are bold, simple, and impactful. Enter loyalty cards. These aren’t your grandma’s punch cards for free coffee. Today, loyalty cards are sleek, digital, and laser-focused on building a relationship—or at least the illusion of one—with your customers.

At Perkstar, we’ve taken the old-school loyalty card and weaponized it for the digital battlefield. This isn’t just about points and perks; it’s about psychology, strategy, and using platforms like Instagram to turn followers into buyers. Let’s break it down.

Loyalty Cards 2.0: The Digital Evolution

Loyalty programs have been around forever. They’re the marketing equivalent of a dog treat—a small reward that keeps customers coming back. But here’s the kicker: in the digital era, these cards have evolved into something much more sophisticated. They’re now data-driven marketing tools that do everything from tracking spending habits to nudging customers back into your store with irresistible offers.

Coupon cards, a key part of this evolution, have become marketing gold. They offer instant value, whether it’s a discount or a freebie, and they tap into the deep recesses of human psychology to drive action.

Why Loyalty Cards Work: The Psychology of “Free”

Let’s get real: people love free stuff. But it’s not just because they’re cheap (though that’s part of it). The effectiveness of loyalty cards is rooted in three core psychological principles:

1. Reciprocity: The Give-to-Get Play

Humans are wired to reciprocate. When someone gives you something—even if it’s just a free drink or a discount—you feel a need to give back. Businesses that lean into this by offering upfront value set the stage for loyalty. The customer thinks, “They gave me something; the least I can do is buy a latte.”

2. The Endowment Effect: Make It Theirs

Ownership changes everything. When you let customers “own” a deal or coupon—even digitally—it suddenly feels more valuable. A coupon in a digital wallet isn’t just a discount; it’s their discount. That sense of ownership drives them to use it.

3. Commitment: Small Wins Lead to Big Ones

Getting a customer to take one small step, like adding a coupon to their wallet, increases the likelihood of a bigger step, like making a purchase. It’s the foot-in-the-door technique, and it’s marketing 101.

Social Media: The Modern-Day Mall

If loyalty cards are the bait, social media is the pond. Platforms like Instagram, TikTok, and Facebook are where your customers live, breathe, and scroll. Using these channels to distribute loyalty cards isn’t just smart—it’s essential. Here’s how to do it right:

1. The Call-to-Action Hammer

Don’t beat around the bush. If you want customers to take action, tell them exactly what to do:

  • “Click here to claim your free coffee coupon!”

  • “Add this 20% discount card to your wallet now!”

Clear, direct calls-to-action (CTAs) are non-negotiable. Make them bold, make them urgent, and don’t give your audience time to think twice.

2. Viral Magic: Make It Shareable

A good deal is like a good meme—people want to share it. When customers snag a great coupon, they’re likely to send it to friends or post about it online. That’s free marketing for you.

3. Retarget, Rinse, Repeat

Here’s the beauty of digital loyalty cards: they’re trackable. Once a customer interacts with your card, you can hit them with retargeting ads to remind them to use it. It’s marketing that doesn’t quit.

Case Study: How Perkstar Drives Results

Let’s dig deeper into how a boutique coffee shop used Perkstar to revolutionize its marketing strategy. Here’s what happened:

Step 1: The Offer The coffee shop created a digital coupon campaign on Instagram, promoting a free pastry with any coffee purchase. The offer was straightforward and enticing—a classic example of using reciprocity to draw customers in.

Step 2: Seamless Integration Using Perkstar’s tools, the business designed a professional coupon card that customers could easily add to their digital wallets. The campaign used an eye-catching post with a direct call-to-action: “Tap the link to claim your free pastry coupon and add it to your wallet now!”

Step 3: Multi-Channel Distribution The coffee shop amplified the campaign by retargeting ads on Facebook and TikTok. These ads reminded customers who had viewed the original Instagram post to take action. Automated push notifications, powered by Perkstar, further supported the effort by sending timely reminders to users who had added the coupon but not yet redeemed it. Geo-location notifications also played a critical role, pinging customers when they were near the café to nudge them into visiting.

Step 4: Data Collection and Personalization Every customer who claimed the coupon provided valuable data—name, email, and purchasing preferences. The shop used this information to create personalized follow-ups, such as targeted offers for their favorite drinks, and automated push notifications tailored to user behavior.

Step 5: Results That Speak Foot traffic increased by 35% over two weeks. More than 70% of customers who redeemed the coupon also made additional purchases, leading to a 20% boost in average transaction value. Importantly, the shop now had a robust database of engaged customers for future campaigns.

This case isn’t just about boosting sales; it’s about building a sustainable, data-driven relationship with customers. By combining psychology, technology, and a well-executed strategy—including advanced retargeting through automated and geo-triggered push notifications—the coffee shop turned a simple offer into a powerful marketing success story.

Best Practices: How to Make Loyalty Cards Work for You

Want to crush it with loyalty cards? Here’s what you need to do:

1. Simplicity Is King

Don’t make your customers jump through hoops. Claiming a coupon should be as easy as double-tapping a photo.

2. Optimize for Mobile

Your audience is on their phones. Make sure your loyalty cards are mobile-friendly and integrate with digital wallets like Apple Wallet and Google Wallet.

3. Personalize Everything

Generic offers are boring. Use customer data to create personalized deals that make people feel special.

4. Create FOMO

Fear of missing out (FOMO) is real. Use time-sensitive offers to create urgency and drive immediate action.

5. Measure and Adjust

Track redemption rates, engagement, and ROI. If something isn’t working, pivot. Marketing is all about experimentation.

The Future of Loyalty Cards

Loyalty cards aren’t going anywhere. In fact, they’re becoming more powerful as technology evolves. At Perkstar, we’re leading the charge, helping businesses turn digital loyalty cards into marketing machines.

By combining psychology, social media savvy, and cutting-edge tech, we’re helping brands build stronger customer relationships and drive serious results. Ready to join us?

Let’s Make Loyalty Work for You

If you’re ready to turn your marketing strategy up a notch, Perkstar is here to help. Contact us today to learn how our digital loyalty cards can transform your business.