Small businesses already use digital solutions for their operations. For example, many utilize an invoice maker app and online accounting and bookkeeping services to streamline processes and keep their finances organized. Ideally, entrepreneurs should also automate other business activities like their customer loyalty program.

These loyalty programs are created to reward consumers for their repeated patronage, encouraging them to keep doing business with the brand. Often, companies implement manual reward systems that rely on plastic cards and paper coupons.

However, as people continue moving in a digital world – especially with the impact of the COVID-19 pandemic – it places greater emphasis on the need for automation among businesses.

Here are some reasons why entrepreneurs should digitalize their customer loyalty programs.

Importance of Automation in Customer Loyalty Programs

Cost-Effective and Sustainable

When businesses run out of physical loyalty cards to provide customers, they need to order or produce new ones, which entails higher costs in the long run. These paper or plastic cards are also often forgotten, misplaced, or lost by consumers.

When entrepreneurs adopt an automated customer loyalty program, they can save up on these expenses while providing a seamless user experience. Additionally, since the program operates on a digital platform, it does not exhaust resources, making it a more sustainable choice.

Increases Sales and Boosts Brand Awareness

Entrepreneurs can also use their automated customer reward system to create a presence even when patrons are not buying. Apart from providing reward points for returning customers, businesses can publish promotional materials to their clientele and generate additional sales.

Tracks Progress Efficiently 

It is often challenging to monitor progress and return of investment with physical card loyalty systems. Moreover, failure to account for these reward points can cause discrepancies in the company’s financial statements and lead to costly consequences.

With a digital customer reward solution, businesses can view statistical data that accurately reflects how their program is doing.

Provides Valuable Data on Customer Insights

Besides letting entrepreneurs determine the progress of their customer loyalty programs, these automated solutions also enable them to identify which systems are effective and which ones need improvement.

These digital reward programs can help businesses understand their customers better, creating a stronger relationship in the long term.

Keeps the Business Competitive

In the digital age, the ability to adapt quickly to changing industry trends and practices greatly influences a business’s survivorship. If a company continues to rely on manual systems and fails to automate, it might get left behind in the competition by those already operating on digital platforms.

Build Customer Loyalty with KIPPIN

KIPPIN – from the phrase “Keeping it simple” – aims to make people’s lives easier by providing simple solutions to everyday tasks. We offer accounting, bookkeeping, and tax services on the cloud and align our clients to top bookkeepers and accountants on our platform. We also offer a fully managed and automated digital solution for your customer loyalty program.

Contact us today at 1-905-581-9362 or email us at You may also chat with us at to learn more about our product and service lineup.


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