Why do shops use loyalty cards?
Daniel Santos
Updated on February 16, 2026
Marketing It is well-known that companies use loyalty card data to understand shoppers’ habits. Loyalty card data helps retailers understand people’s behaviour and then shape it by targeting advertising and organising products to encourage more sales.
How do loyalty cards work?
The card is issued or given to the customer at the business location. The card is then presented each time the customer visits and points, dollars or % amounts are added to the card based on predetermined reward levels that the merchant sets upfront.
Which is the best loyalty card?
Best loyalty and reward cards
| Loyalty card | Best for | |
|---|---|---|
| 1 | Tesco Clubcard | Getting discounts with Tesco’s Reward Partners (e.g. Pizza Express, 16-25 Railcard, etc.) |
| 2 | Nectar card | Often good offers on the Nectar website |
| 3 | Paperchase Treat Me | Spend £50 within six months and get £5 off next shop |
| 4 | Boots Advantage Card | Mega points weekends |
Are loyalty cards good?
Loyalty and rewards cards help make sure your customers keep coming back for more! This is known as customer retention and increasing retention levels by just 5% can boost revenue by 25-95%. When customers feel positive about a brand, they’re more likely to shop with them. Loyalty Schemes Practically Run Themselves!
Is it worth getting loyalty card?
It’s always worth having a loyalty card – if you want to save money and do not mind handing over such specific data to companies – so you can get the exclusive deals that come with it but you should never use it as the sole reason to shop in one place.
How does sales increase loyalty?
Yes, loyalty programs increase sales and revenue. Customer loyalty matters because repeat customers spend more on each transaction. Loyal customers are more likely to repurchase, refer more, and try a new offering.
Can you collect Nectar points at Asda?
Asda doesn’t have its own loyalty scheme so it would be welcome new if this becomes available in the green stores too. Retail expert Richard Hyman said that being able to use your Nectar points in Asda is a matter of when not if.
Where can I use my loyalty card app?
Digital loyalty cards can now be accessed via apps downloaded on the customer’s mobile phones. When teamed with a retail point of sale (POS) system, you’ve got yourself the most sophisticated customer rewards program that’s ever existed before.
How many loyalty cards does the average UK Shopper have?
The average UK shopper owns three loyalty cards, according to research by retail analysts TCC Global. But how exactly do retailers use the data provided by the cards in your wallet and should you be concerned? 1. Marketing It is well-known that companies use loyalty card data to understand shoppers’ habits.
Are there any privacy concerns with loyalty cards?
If your loyalty card program is digital, ensure the app is fast loading and a customer’s personal ID barcode or member number is easily accessed. Loyalty Cards Can Incite Privacy Concerns. In order to sign up for a loyalty card program, customers have to be open to volunteering some of their personal information.
