Using QR Codes to Drive Customer Loyalty – Explained
- Posted on April 22, 2022 by natalia
- Reading time about 7 minutes
Customers have more choices than ever when it comes to the brand they wish to associate with. Winning customers’ hearts to become a brand that they love is becoming tougher with huge competition in the market today. If you are a business owner, your only motive is to boost sales and it can be done by driving customer loyalty which involves acquiring new customers as well as getting repeat purchases from existing ones.
So, how can you launch an effective loyalty program that can help your business boost ROI? We have an idea for you- make use of a QR code loyalty program to transform your brand story and enhance customer loyalty rates. Let’s find out how you can use QR codes for loyalty programs to give your customers a reason to keep coming back.
How Businesses Can Take Advantage of QR Code Rewards Program?
Undoubtedly, businesses love loyal customers for the obvious reason – More than 60% of loyal customers spend more than new ones. And, the cost to invest in a new customer is much higher than it takes to retain existing ones i.e. around 5-25 times more. Another study by Juniper says that the number of QR code coupons redeemed via mobile is expected to reach 5.3 billion by 2022, up from an estimated 1.3 billion in 2017.
Well-planned and hyper-personalized QR code-based loyalty programs can empower brands to increase customer retention thereby generating a positive ROI. Here are a few ways to use QR codes for loyalty programs-
1. Social Media Ads
Many users said offers and promotions showcased on social media compel them to visit the brand’s website. A social media-based QR code loyalty program is one of the best ways as many social media platforms like Facebook, Instagram, Twitter, etc. can serve as a great method for branding content. You can add CTA to share instructions and tell users how to use coupons in QR code-based loyalty program for more clarity. Run ads for your loyalty program to help in reaching audiences who are not your social media account followers.
2. Email Marketing Campaigns
Another way is to use an Email-based QR Code loyalty program that enables brands to create customized email campaigns for different customer segments and increase the chance of download rate. When we talk about email campaigns, we can build a QR code-based loyalty program with a weekly newsletter, new product launches, exclusive event promotions, etc. You can encourage users to scan QR codes while purchasing to avail of rewards or discounts using your loyalty program.
3. SMS Campaigns
Making use of QR loyalty programs and sending promotional messages about your programs via SMS is an effective way of reaching out to more customers. Similar to social media ads, you can add a URL containing the QR Codes for easy activation that enables customers to click on the link and avail of a discount on their favorite item at the nearest brand outlet by presenting the QR Code. An extra tip is to add a personal touch by adding the customer’s name in the SMS to build interest.
4. Mobile Apps
As most smartphone users rely on mobile apps, making use of a Mobile-based QR Code loyalty program is the best approach as it allows users to have easy access to the QR codes within the app. For brands using a QR loyalty program, you can add a feature in your mobile app that allows customers to view QR codes and have an option to save for later access using the ‘Add to the Wallet’ or ‘Save to Phone’ buttons. This helps the user to access the codes during purchase, which are saved within the app or directly on their smartphone.
Users are more likely to use the loyalty program if they are mobile-friendly. Research says more than 70% of customers redeem their loyalty rewards if they are easily available on their mobile apps, which shows in-app loyalty programs are very helpful in driving greater ROI.
5. QR Codes in Receipts
Using QR Codes on receipts for loyalty programs are becoming a great trend for many businesses as receipts or bills offer a great way to promote QR code-based program where customers can avail the benefit by scanning QR codes. Some brands like Tacuna Systems use a QR code loyalty program by printing QR codes on receipts of existing customers, which they can scan to get redirected to the promo page that offers special discounts.
This method is very beneficial as it encourages customers to scan the QR code for an extra offer and free sample of the product making them come to your brand outlet again and again. Additionally, for the best benefits, you must train company staff to remind customers about this QR offer in the billing section.
6. In-Store QR Codes
In this program, businesses having a physical store can take advantage by running in-store loyalty programs through posters showcased at the check-out aisle and through print advertisements. Another way is to add QR codes on products which help in keeping customers engaged and getting them enrolled in the loyalty program after purchase.
This not only helps in simplifying the loyalty program registration process but also in engaging more users to become a part of the program as QR codes are placed near entry/exit points, POS, etc. For users that don’t have smartphones with scanner facilities, you can add a short URL with a webpage having QR codes with discounts/rewards.
7. Tier-based Program with QR Codes
Another common type of loyalty program is Tier-based and implementing it with QR is the best way to boost customer loyalty and increase purchase rates. Your customers can scan QR codes in review feedback forms, new products, POS aisles, during sales, etc. to get enrolled in the program and maintain their membership account to move from one tier to the next.
This is the best way as it helps brands to keep customers engaged for a long time and customers are more likely to make repeat purchases to improve their tier level with time. Brands can keep track of customers spending behavior to create more relevant campaigns eventually helping brands to achieve better brand loyalty.
8. Loyalty Program Gamification with QR
Gamification loyalty program is a new trend that is gaining huge attention by allowing users to scan QR codes & play games for better engagement. Research says more than 53% of customers say they are interested in using game mechanics. Since many users are interested in games, including game-like elements in QR-based loyalty programs can be a great success by boosting the customers ‘interest rates to know more about your program.
Some of the ways are to conduct a contest, level-based games, spin-o-wheel games, etc. that offer some freebie & extra offer/reward on every program sign up.
The QR-based loyalty programs are here to stay and they are helps brands achieve better customer loyalty and increase ROI. After going through the blog, you must have got an idea of how you can use QR codes in your loyalty program and engage customers. For any help in building a well-strategized QR code loyalty program, connect with the expert developers of Novus Loyalty and create tailored marketing campaigns to boost customer retention rates. Whether you want to build a loyalty program from a scratch or need help updating an existing one, Novus Loyalty has everything you need.