QR Code Loyalty Programs: A Quick Start Guide for Beginners

Customer retention is one of the most important building blocks of a successful business. Yet, maintaining loyalty is no small feat—keeping your audience engaged can be challenging without effective strategies in place. To foster stronger connections, you need creative marketing campaigns that resonate with your customers. 

This is where QR (Quick Response) Codes become useful.

Marketers are finding innovative ways to leverage QR Codes for business growth—whether it’s enhancing engagement or building brand loyalty. One of the most powerful applications is in loyalty programs. QR Code loyalty programs can increase customer participation and drive retention, helping your business grow by strengthening relationships and encouraging repeat purchases. 

Curious about how it works? Stay with us as we explore how QR Codes can elevate loyalty programs and deepen your brand’s customer relationships. 

*Note: All brands and examples discussed below were found during our online research for this article.

The relationship between loyalty programs, QR Codes, and customer retention

Loyalty programs are marketing strategies designed to reward customers for their repeat business. By offering incentives like early product access, event invites, special discounts, or sales, brands can encourage customers to stay engaged. Most programs allow customers to earn points for purchases, which they can redeem for rewards and insider perks. 

But why are loyalty programs so essential for modern businesses? A well-executed program can:

• Increase sales: 70% of consumers prioritize brands with loyalty programs, leading to higher sales. 
  
  
• Strengthen customer relationships: Loyalty programs help retain customers by making them feel appreciated, increasing their willingness to return and shop. Since acquiring new customers costs up to five times more than keeping existing ones, focusing on retention is a smart, long-term growth strategy. 
  
  
• Create brand advocates: Satisfied customers are often eager to share their positive experiences, which can bring in new customers through word of mouth. 
  
  
• Boost customer lifetime value (CLV): Loyalty programs can encourage customers to make more frequent, higher-value purchases, particularly when rewards are tied to spending. 

Now, how do QR Codes tie into this? Businesses increasingly incorporate QR Codes into their loyalty programs to enhance convenience and gain deeper insights into their target audiences. Big brands like Tim Hortons and Sweetgreen have successfully integrated QR Codes into their programs to encourage participation and simplify the customer experience. 

Here’s why these codes are a game-changer for loyalty programs:

• Convenience: QR Codes eliminate the need for physical cards. Customers can easily access loyalty programs through their smartphones—no more forgetting cards at home and missing out on perks.
  
  
• Seamless integration with digital wallets: Digital payment QR Codes can be stored in digital wallets, making it easy for customers to track their rewards.
  
  
• Eco-friendly: They reduce the need for printed loyalty cards, cutting down on waste and reducing a brand’s carbon footprint. 
  
  
• Actionable insights: QR Codes enable businesses to track scan data, giving them valuable insights into customer preferences and program engagement. 

How and why businesses use QR Codes for loyalty rewards

If you’ve been researching these solutions, you may have encountered posts asking, “Are QR Codes dead?” The answer is a resounding no—QR Codes have become indispensable in elevating business processes, particularly for loyalty rewards programs. Here’s how:

Encourage customer loyalty program participation

QR Codes make it much easier for customers to join loyalty programs. With just a quick scan, they can sign up and instantly access important details like their earned points. Additionally, they can quickly check how close they are to reaching the threshold for rewards or discounts, making it more motivating for them to stay engaged and continue making purchases.

They also save time for both customers and staff. Instead of manually entering customer data into your point-of-sale (POS) system, shoppers can scan the code and be directed straight to your customer loyalty program landing page to check their points balance.

Many well-known brands are already using QR Codes to streamline their programs. For example, Starbucks allows consumers to easily collect Stars by scanning their member barcodes at participating stores when making purchases. This seamless process increases customer engagement by making it quick and effortless for them to track and redeem rewards. 

Facilitate rewards earning through QR Codes

QR Codes simplify the process of earning rewards, especially for in-store purchases. At Wendy’s, customers simply scan designated QR Codes at the counter to collect points with each order. The system automatically logs their purchases without requiring additional input from the customer or staff.

Additionally, QR Codes make it easier for participants to redeem rewards. By scanning a code, customers can be directed straight to a point redemption page, where they can choose how to use their points—whether it’s for free products or discounts, based on the company’s offerings. 

Understand how customers use their loyalty cards

QR Codes do more than just provide easy access to your program; they also offer valuable insights into customer behavior. Each scan registers data, allowing businesses to track interactions and combine this information with customer feedback to gain a deeper understanding of their interests. 

Depending on your chosen QR Code generator, businesses can monitor key metrics, such as the total number of scans, unique scans, scan times, locations, and the type of device or operating system used. 

Knowing how to track QR Code scans is key to spotting trends, like when, where, and how customers interact with your loyalty program. These insights enable businesses to deliver a more personalized experience, tailoring offers and rewards to customer preferences. For example, if you run multiple rewards programs, tracking scan data helps you figure out which offers are the most popular with your audience. 

If your business has multiple locations, you can also see which stores get the most engagement. These insights give you actionable information that can help you optimize future loyalty program initiatives and improve overall performance. 

Incentivize shoppers to become repeat customers

Loyalty programs are powerful tools for encouraging repeat purchases, and the proof is in the numbers—70% of consumers spend more on brands when they’re members of their loyalty programs. 

By integrating QR Codes, businesses can further boost repeat purchases by simplifying the enrollment process and making it easier for customers to participate. With just a scan, customers can join your program and enjoy the perks you offer, increasing the likelihood that they’ll return for future purchases. 

How to create QR Code loyalty programs

Now that you know the benefits, how do you create QR Code loyalty programs? Here’s a step-by-step guide:

Choose a reliable QR Code Generator

The first and most important step is selecting the right tool, as it impacts how easily you can create your codes and how effective they’ll be in meeting your needs. 

To find a reliable tool, make a list of some of the best QR Code generators—like QR Generator PRO—and compare their features. Some key factors to consider include:

• Ease of use: A user-friendly, intuitive interface is crucial. The last thing you need is a tool with a steep learning curve that causes delays. 
  
  
• Customization capabilities: Look for a generator that lets you customize codes with brand colors, a logo, and other identifying elements to enhance brand recognition and encourage interaction. 
  
  
• Dynamic QR Code capabilities: Dynamic QR Codes are preferable because they’re editable and trackable. Make sure the generator offers this functionality so you can update codes as needed and monitor their performance.
  
  
• Analytics: Opt for a tool that provides real-time scan data, enabling your team to track interactions and optimize loyalty programs based on customer behavior. 

Create Dynamic QR Codes

Dynamic QR Codes are a superior option for loyalty programs compared to Static QR Codes. They’re trackable, which means you can see how your loyalty program is performing and gather useful insights about customer interactions. Plus, they’re editable, allowing you to change destinations whenever needed. This flexibility may come in handy when you want to repurpose your QR Codes for other marketing strategies down the line. 

To create a Dynamic URL QR Code, start by creating a sign-up or enrollment landing page for your program. Then, use your preferred QR Code generator to embed the URL of that page into your code. 

Once your code is ready, download and display it on marketing materials that customers are likely to interact with, like receipts, in-store signage, and product packaging. This makes it easy for them to sign up and participate in your program. 

Reward sign-ups with coupons

Offering rewards like exclusive coupons is an effective way to incentivize customers to sign up for your program. With a Coupon QR Code, customers can redeem their offers with a quick scan, automatically applying a discount code or directing them to a special offer during online checkout. Alternatively, a store employee can scan the code for in-store purchases.

When you’re ready, share the Coupon QR Code with customers via email or SMS as part of their welcome to the loyalty program, encouraging immediate engagement. 

Follow QR Code generation best practices

To make sure your loyalty program runs smoothly, follow a few best practices when creating QR Codes. By steering clear of common mistakes, you’ll ensure your codes work as intended and are easy for customers to use. Some QR Code mistakes to avoid include:

• Not testing your codes: Always test your codes on different mobile devices, including iOS and Android, to confirm that they function correctly before launching. 
  
  
• Creating codes that are too small: For printed materials, the minimum QR Code size is at least 2 cm x 2 cm to guarantee it can easily be scanned. 
  
  
• Choosing “near-similar” colors: Use contrasting colors for your codes’ foreground and background to make it easy for scanners to read them. For example, avoid light colors on light backgrounds.
  
  
• Picking the wrong QR Code placement: Be strategic about where you place your codes. Prominent locations like near checkout counters or on product packaging will ensure they get noticed by loyal customers. 

5 ways to promote loyalty programs through QR Codes

Promoting your loyalty program consistently is key for maximum sign-up and engagement. The more visibility your program gets, the more likely customers are to join. Some great ways to promote your program include:

1. In-store signage

Incorporating QR Codes on in-store signage is a great strategy for retail businesses to leverage foot traffic. Shoppers are bound to encounter your signage during their visit, increasing the visibility of both your code and loyalty program. 

Place QR Codes on digital displays, wall signs, checkout signs, and any other prominent areas in your store. If you’re in the hospitality industry, you can embed the codes on menus or tables to capture more attention.

2. Product packaging

If you’re wondering how to use QR Codes in ecommerce, adding them to product packaging is an excellent strategy. Smart packaging QR Codes provide constant visibility, as customers are likely to hold on to the packaging until they finish using or assembling your product. This serves as a constant reminder to sign up for your loyalty program. 

To implement this strategy, print the code on a prominent part of your packaging, such as the side or back. Include a clear call to action (CTA), like “Scan to enroll in our loyalty program” or “Scan to earn rewards.” QR Codes in ecommerce are especially effective for keeping your brand top of mind throughout the customer journey.

3. Receipts

Receipts are a great way to promote your loyalty program because customers have already made a purchase, making them more likely to consider future purchases. By introducing your program at this moment, you can encourage them to join and start earning points on their next visit—or, further incentivize them by granting points for the purchase they already made!

This strategy works across industries. In the hospitality industry, QR Codes can engage customers post-dining by including them at the bottom of physical receipts. For ecommerce businesses, adding them to digital receipts offers a seamless way for customers to sign up for your program while the purchase is still fresh in their minds. 

4. Email campaigns

If you have customers’ contact information, use targeted email marketing to increase your program’s visibility. This email marketing strategy using QR Codes is highly effective since customers regularly check their inboxes, and personalized communications increase the likelihood of engagement. 

Promoting your loyalty program via email also allows more space to explain the rewards. Use a compelling email subject line, such as “Join our loyalty program to earn rewards,” and in the body, focus on what your customer base will gain by signing up. Include a QR Code at the bottom with a clear CTA, encouraging recipients to scan and enroll. 

You can further personalize these emails by recommending products based on past purchases and including a QR Code that leads them to your sign-up page. Let customers know that scanning the code unlocks exclusive offers on the recommended products. 

5. Post mail

While direct mail may seem a little old school, it’s still an effective way to engage customers. It offers a personal, tangible experience that can prompt more interaction with your QR Codes. Plus, it helps you reach customers who may not visit your store or interact with your brand online as often. 

To make the most of QR Codes for direct mail campaigns, embed them in mailers customers are likely to interact with, such as catalogs or postcards. As always, include a clear CTA that prompts recipients to scan the codes and explains the benefits they’ll receive by doing so, such as earning rewards on their next purchase. 

Strengthen customer loyalty with QR Codes

QR Codes can take your customer loyalty campaigns to the next level by making it easy for people to sign up and interact with your program. They provide actionable insights, helping you understand which deals and rewards resonate most with your audience. With this data, you can fine-tune your loyalty program to make it even more effective. But to get the most out of these benefits, it’s important to use the right QR Code generator. 

With QR Code Generator PRO’s user-friendly interface, you can create Dynamic Codes for your loyalty program in minutes. Our platform offers extensive customization options and robust tracking capabilities, making it easy to align your QR Codes with your brand and monitor engagement in real time. These insights help you understand customer behavior and fine-tune your marketing efforts for maximum impact.

Sign up for QR Code Generator PRO today to create custom QR Codes that help nurture lasting customer relationships!