- Capture Identity. In the world of paper punch cards, you could drive loyalty, but you couldn't capture identity. You didn't know which people were coming to your store each month. With modern loyalty programs, local businesses can finally connect a store visitor with a real person's identity, since at signup, their identity is registered in a database that’s integrated with their point-of-sale. Then when they come back to the store with their loyalty card, businesses know their name.
- Connect Identity to Activity. Since customers are no longer anonymous visitors and bring their identity with them, local businesses can now connect customers to specific activity--whether that's visiting their store frequently or purchasing particular products.
- Drive Personalization. Because they now know which customers come frequently, which ones have stopped coming, and which ones prefer particular items, businesses can customize their treatment of these customers. They can make their best customers even more loyal by treating them as such and win back the ones who have stopped coming.
Source : Inc., 1/04/13, Voctor Ho