Digital loyalty passes: how to improve customer retention

Published on 29th April 2025

Most businesses know that customer loyalty can be hard to earn but is easily lost. The rise of digital loyalty passes has provided a new tool to help businesses keep their customers engaged.

This new type of digital loyalty card is reshaping how companies approach customer retention, offering convenience, personalisation, and value in ways that were previously unimaginable.

Making it easy for customers

Digital loyalty passes integrate seamlessly into smartphones via apps like Apple Wallet or Google Pay. They offer customers an effortless way to track and redeem rewards. Unlike physical loyalty cards that are often forgotten or lost, these passes are always accessible and automatically updated. They’re also better than loyalty apps which users often need a password to log in to, as well as an internet connection.

“Digital wallet loyalty passes are a great way to streamline the process for both businesses and customers,” says Stewart Johnson, Founder of PassFlow. “People want a consistent way to use these kinds of passes without thinking where to find the appropriate app. They remove barriers like manual tracking of rewards and ensure that customers have their benefits at their fingertips.”

How wallet passes can make loyal customers

Digital loyalty cards which sit in a mobile wallet are much more flexible and innovative than their paper or plastic counterparts. If you’re looking to reward your customers, here are some ideas:

Enable customers to collect points every time they spend with you. Let them scan their phone at the point of sale via NFC or a QR code.
Using geographical data from the pass, target your customers with personalised offers when they are in a certain vicinity of one of your branches.

Today’s consumers are demanding more from their experiences. According to a recent survey by McKinsey, 71% of customers are more likely to stay loyal to brands that offer personalised experiences. Digital loyalty passes excel in this regard by delivering customised rewards, reminders, and even location-based perks when customers are near a store.

Benefits for business

For businesses who offer wallet passes, the advantages go beyond just convenience:

Real-Time Engagement: Digital passes allow companies to push real-time updates, such as exclusive offers or flash sales, directly to a customer’s device.

Data-driven insights: By analysing customer behaviour through pass interactions, businesses are able to tailor promotions and rewards to individual preferences, boosting the likelihood of repeat purchases.

Cost-effectiveness: Printing and distributing physical cards is expensive and environmentally taxing. Digital alternatives get rid of these costs while helping with sustainability too.

Enhanced brand loyalty: A well-designed digital loyalty programme can foster a stronger emotional connection with the brand, as customers feel valued and rewarded for their loyalty.

Where digital loyalty passes can be used

Any business that encourages repeat custom can benefit from a mobile wallet loyalty pass. The list includes coffee shops, gyms, take away and fast food restaurants, pet grooming, hairdressers, bookshops, night clubs and gift shops. When you give digital rewards to your customers in return for them spending with you, they will have a stronger emotional connection to your brand and are more likely to continue coming back for your service.

Future implications

As technology progresses, digital loyalty passes are expected to become even more dynamic. Artificial intelligence (AI) and machine learning could make them smarter, predicting customer needs before they arise.

Rewards for business and customer

Digital loyalty passes represent a significant leap forward in how businesses retain their customers. For companies willing to invest in this innovative approach, the rewards could be as substantial as those offered to their most loyal customers.

The age of the physical loyalty card is on its way out, and the era of digital loyalty passes is here to stay.

How to get started

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