How Digital Passes Work

Time for Retailers to Tap into Digital Coupon Potential

Give customers the convenience storing coupons, loyalty points, and gift cards on their smartphones.

Digital passes allow retailers to replace plastic cards and paper coupons with scannable, digital alternatives that consumers can store in digital wallets on their smartphones and redeem at any point of sale.

By integrating digital pass functionality with your retail management suite, you can issue loyalty cards, coupons, tickets, gift cards, membership cards, and other promotional messaging digitally, expanding your brand’s mobile footprint. In addition, digital pass functionality combined with geolocationing solutions enables you to send offers and promotions to shoppers’ iOS or Android devices when they are inside your store or within a specific distance outside point of sale.

Snapshot of Digital Passes on mobile devices
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Customer purchase made through Digital Passes.

The Importance of Digital Passes

Today’s consumers are looking for the most convenient path to purchase, and in many cases, that includes using their smartphones. Most of your customers keep their smartphones with them throughout the day, which makes it the logical tool to use when they want to check on product information, item availability, and promotions, and they may even buy the item and pick it up later at one of your store locations or have it shipped to their homes.

Our research reveals that more than 70% of consumers shop on their smartphones when at home, traveling, or during free time, and more than 80% use smartphones while they’re shopping in physical stores to research products and pricing. Our research also reveals that consumers don’t find paper coupons convenient. More than half of all shoppers say they have missed out on deals because they forgot paper coupons at home or didn’t remember to use them by the expiration date.

Delivering digital passes right to shoppers’ smartphones solves these problems and adds an additional dimension of convenience to the shopping experiences your brand provides. And by enhancing your customers’ shopping experiences, you are move likely to earn and retain their loyalty.

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Taking Loyalty Rewards and Gift Cards Digital

Digital passes aren’t just a way to upgrade the way you offer coupons to your customers. You can also use a digital pass solution to eliminate plastic loyalty cards and allow shoppers to simply use their smartphones to access their loyalty accounts and earn rewards on their purchases. Likewise, your customers can opt to use or send eGift cards that they store on their smartphones, making them easy to use and manage.

And digital passes can be just as effective as a branding tool — or even more effective — as paper coupons and plastic cards, since it keeps your logo, name and messaging on shoppers’ smartphones, which are always in hand.

iVend Retail digital passes are easy to implement within the iVend Retail Management suite. You can leverage three time-saving templates – for gift cards, coupons, and loyalty cards – to provide your customers with added conveniences even faster.

Digital passes as loyalty rewards and gift cards on mobile devices.
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Digital Passes integrated with retail management system

How Integrated Systems Improve Customer Experiences

When your digital pass solution is a part of a fully integrated retail platform, flawlessly sharing data, you have the ability to provide seamless customer experiences across all channels. iVend Retail is an open source retail management suite, which means it will integrate with your ERP and other business applications you may use so all systems are consistent and up to date. In addition, iVend Digital Passes can be used with any existing POS system via open APIs.

With an integrated system, your loyalty rewards program, gift card management system, promotions engine and CRM, as well as your eCommerce platform, mobile POS, and reporting and analytics solution, can instantly communicate with your digital pass solution in real time. Customers can access the most up-to-date balances and offers that haven’t yet reached their expiration date, which can increase customer engagement. An integrated system ensures accuracy, efficiency — and happier customers.

You will also benefit by having a system that’s easier to maintain, that’s easier for employees to learn, and that adds greater efficiency and productivity to your operations.

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The Right Offer at the Right Time

If you issue a paper coupon or expect your customers to carry and manage a plastic loyalty program card, you never really know if the promotion or the rewards are top of mind and influencing purchases. With digital passes delivered at just the right moment, however, you can.

By combining digital pass functionality with beacons or geofencing technology, you can deliver a promotion to a shopper’s smartphone right at the point of decision. Our research found more than 70% of global consumers say they are very likely or somewhat likely to make a purchase when they receive digital passes in a store or when nearby.

You can also integrate digital passes with interactive displays, allowing consumers to scan QR codes to receive coupons for merchandise that captured their attention when shopping in-store.

iVend Digital passes can send promotions based on shopper location with geofencing technology.
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Greater Insight into Effectiveness of Promotions

Digital passes also provide retailers with another benefit: data. Using digital passes allows you to track redemptions across all channels, better understand the appeal of the promotion to different demographics, and then use that data to optimize future promotions as well as purchasing and merchandising decisions.

Making decisions based on customer data has become vital to operating a successful, profitable omnichannel operation. Data from digital passes is one part of the complete picture you need of your customer to fully understand and deliver the retail experiences they demand.

iVend Retail digital passes can be added to almost any campaign and delivered to a segmented or nonsegmented list. In addition, retailers around the world using iVend digital passes can actively monitor promotional and marketing campaigns geographically, which allows them to gather more in depth data.

Use Technology to Thrive

Advances in retail technology can allow you to provide unique experiences and a higher degree of personalization than you had ever before thought possible. Our eBook shows you how, with the help of real-life examples, to become a successful part of the retail industry’s revolution.

Digital Passes Minimize Fraud

An added benefit of using digital passes instead of paper coupons or plastic gift cards is reduced fraud. A digital pass associated with a specific customer account or smartphone can’t be duplicated and reused like paper coupons can.

And the data can be stolen from the magnetic stripe on a gift card, but it can’t be stolen from a mobile wallet that uses state-of-the-art security technology to keep data safe.

Digital passes allow you to extend an offer for a personalized promotion or issue rewards to a specific customer — and only that customer. You may also find that digital passes allow you to expand your reach and connect new customers with the services you offer.

iVend Digital Passes has integrated fraud detection.

Interested in learning how iVend Retail can accelerate your retail success?

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