Customer loyalty glossary
Customer loyalty
Everything a business does to make its customers come back and buy again. Find out more in the customer loyalty guide.
Digital loyalty
A loyalty programme that runs on the phone instead of with paper or plastic cards: stamps, points and rewards are stored in an app.
Digital stamp card
The phone version of the classic paper card: the customer earns a stamp per visit or purchase and, once the card is complete, gets a reward (for example, «9 coffees = 1 free»). See stamp cards.
Points programme
A system in which every euro spent earns points that the customer exchanges for discounts or gifts. It works best when the spend varies a lot. See points cards.
Loyalty giveaway
A regular prize draw among customers who buy from or visit the business; every purchase is an entry. See giveaways.
Reward
What the customer gets for completing their card or redeeming their points: a free product, a discount or an extra service.
Repeat customer
A customer who comes back regularly. They are the main goal of any loyalty programme.
Retention rate
The percentage of customers who are still buying from your business after a given period (for example, a month or a year).
Redemption rate
The percentage of cards completed or points redeemed compared with those issued. If it is very low, the reward is too far away or not appealing enough.
Cashback
A refund of a percentage of what was spent, as credit for the next purchase. It is a variant of the points programme.
QR code
A code the customer shows in their app to identify themselves; the business scans it with a phone to give stamps or points without physical cards.
Push notification
An alert that arrives on the customer’s phone: for example, that they are one stamp away from their reward or that there is a new giveaway.
Wallet
The phone’s digital wallet (Apple Wallet or Google Wallet), where some tools store loyalty cards. Socios uses its own app, which adds a map of businesses, giveaways and notifications.
Still have questions? Get in touch or work out your own numbers with the ROI calculator.