Vorafort
Winning a new customer costs more than bringing back one who already knows you. Every coffee shop, barber and restaurant owner knows it, and the numbers agree: Bain & Company’s well-known research found that raising retention by just 5% can lift profits by 25% to 95%.
The simplest tool for it has existed for decades: the punch card. The trouble is that paper cards get lost, stay at home and tell you nothing about your customers. This guide explains how the digital version works, which type fits your business and how to design a reward that doesn’t cost you money.
What a digital loyalty card is
It’s the same punch card, but it lives on the customer’s phone, inside Apple Wallet (iPhone) or Google Wallet (Android). Those are the apps people already use for boarding passes and movie tickets, so there’s nothing new to install.
The flow is short:
- The customer scans a QR code at your counter.
- They add the card to their Wallet with one tap. No app download, no password.
- On each purchase, your staff scans the card with their phone and the stamp shows up instantly.
- When the card is full, the Wallet tells them their reward is ready.
Why Wallet beats a custom app
Many businesses think of a points app first. It sounds good, but almost nobody downloads a café’s app to earn a free coffee. Wallet solves that:
- No friction: adding the card takes seconds and uses no storage.
- Always at hand: it sits next to their payment cards, where customers already look several times a day.
- Notifications built in: updates show on the lock screen; you can announce a reward, a promotion or a “we miss you”.
- Works anywhere: the same system serves a regular and a tourist with a phone from another country.
Stamps, points or cashback: which one
There’s no best type, only the one that matches how people buy from you.
| Type | How it works | Best for |
|---|---|---|
| Stamps | One stamp per visit; a full card earns a reward. | Similar, frequent purchases: coffee, barbers, car washes, bakeries. |
| Points | Points based on spend, redeemed for rewards of different value. | Variable tickets: restaurants, retail, pharmacies. |
| Cashback | A share of every purchase comes back as balance for next time. | Price-sensitive shoppers: clothing, hardware, small grocers. |
If in doubt, start with stamps. Customers understand them without explanation, and you can switch later once you know their habits.
How to price a reward that pays off
The most common mistake is giving away too much, too soon. A practical rule:
- Work out your margin on your best-selling item. If a coffee sells for $3 and costs you $1, you make $2.
- Decide how much of that you’ll invest in loyalty. Between 5% and 10% of what the customer spends is a healthy range.
- Set the stamps: 8 stamps at $3 means the customer spent $24. A free coffee that costs you $1 is about 4% of that.
The reward should feel generous to the customer and cost you little. Your own product (a dessert, a haircut, a wash) is almost always cheaper than a cash discount.
What to measure from month one
A digital card shows you what a paper card hides:
- Members: how many customers added the card.
- Frequency: how many days between visits for a typical customer.
- At-risk customers: people who came often and stopped. Send them an offer before they’re gone.
- Rewards redeemed: if nobody reaches the reward, the goal is too far; if everyone does in a week, it’s too close.
Mistakes we see often
- Hiding the QR code. Put it where people pay, with a clear line: “Collect stamps on your phone”.
- Not training staff. If nobody offers the card, nobody asks for it. One sentence at checkout is enough.
- Sending notifications every day. They work when they’re few and useful: a reward ready, this week’s promo, a “we miss you”.
- Changing the rules midway. If you raise the stamps needed, honor what customers already collected.
How to start this week
- Pick the card type (stamps if unsure).
- Set the reward with your margin in front of you.
- Put the QR at the counter and offer it at every checkout for two weeks.
- Review the numbers at the end of the first month and adjust.
With Vorafort Pass this takes a day: we set up your card with your logo, your reward and the counter sign, in Apple Wallet and Google Wallet, and you can try it free before paying.