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I have developed my own loyalty card system. It is currently in beta testing in 25 different locations. I currently have four different card types out there:

1. Basic Plastic Cards with QR Codes
2. RFID Cards (and keychains)
3. Chipped ID Card
4. Cards with Magnetic Strip

Now, I am going to need to go forward with at least one of these technologies in the future. I have already ruled out plastic cards with QR codes. The businesses that are using this technology for me found it far too cumbersome and the codes were not always read properly which meant the number had to be manually entered). The feedback on the other technologies has all been overwhelmingly positive from both a customer and a business point of view. This leaves me with somewhat of a dilemma.

I can produce each type of card at roughly the same cost (RFID cards cost me slightly more, but the card reader which I distribute to businesses cheaper which balances it out. In any case I charge per card that I print and thus will be able to absorb most of the cost of production anyway. The cards cost me about 50p each to print (when I factor in card cost, my time, coding of the card, ink, dispatch direct to customer). I charge £1.00 per card to the business and they are lapping it up due to the value of the customer (this is on top of their monthly fee) . I am really unsure as to which technology to use going forward. I really am veering towards RFID cards as this seems to be the new way forward and if more phones make use of the technology then I should be able to develop applications that utilize it. In addition to this the use of the card tends to be somewhat higher for those that have RFID key chains that I distributed (although these are costing me a lot more than a £1.00 to produce and I have no proper way of branding these keychains as of yet). However, I really am unsure.

What would you prefer to keep on you?
#card #loyalty #system
  • Profile picture of the author RiskTaker
    * I specialize in B2B Loyalty apps, and my last two apps received funding and are still operating as full fledged companies. That being said ...

    Make the onboarding process for merchants and for consumers as simple as possible. POS Integration is a nightmare and ridiculously expensive but there are workarounds. While cards are cool try and avoid hardware solutions that require more hardware for the merchant. It will hinder your scalability. Try to automate redemption as much as you can.

    QR codes are a pain.

    Hope this helps....
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