QR Codes are transforming loyalty programs, making them simpler, more engaging, and downright irresistible for customers. With a quick scan, customers can earn points, redeem exclusive offers, and feel connected to your brand—all from their smartphones.
But the benefits don’t stop there. Trackable and branded QR Codes offer valuable insights into customer behavior and preferences, allowing businesses to tailor their loyalty rewards programs accordingly.
So, how exactly are QR Codes changing the game? Let’s take a look.
Note: The brands and examples discussed below were found during our online research for this article.
QR Codes are transforming loyalty programs
Customers no longer have to carry around a stack of physical loyalty cards or memorize membership numbers to earn rewards. Thanks to QR Codes, those days are gone, and everything is digitized.
With the right setup (more on this later), customers simply need to scan a code at the time of purchase or check-in, and their rewards are automatically added and tracked in a digital profile.
This digital integration enhances loyalty program engagement and opens up opportunities for businesses to interact with their audiences in dynamic and personalized ways.
Plus, QR Codes provide invaluable tracking data, such as the number of scans, the location of scans, and the devices used. These insights help businesses monitor customer activity, optimize their loyalty strategies, and make data-driven decisions to improve program effectiveness.
Why traditional loyalty programs are losing effectiveness
Traditional loyalty programs have been the go-to for businesses looking to incentivize repeat business and increase customer retention. But these programs often come with their own set of challenges that limit their effectiveness, such as:
- Reliance on physical cards: Physical loyalty cards are easy to lose, forget, or damage, leading to lower customer engagement.
- Manual tracking: Traditional loyalty programs often rely on manual tracking systems, which can be time-consuming and inefficient for businesses.
Digital loyalty programs powered by QR Codes solve these issues head-on. They simplify customer access to rewards and tracking while providing valuable data insights for businesses.
Industries like retail and consumer packaged goods (CPG) are particularly benefiting, as these sectors often see high engagement and returns on investment (ROIs) with innovative QR Code-based solutions.
For example, brands like Curology and Daily Harvest have seen tremendous success with loyalty programs using QR Codes powered by Bitly.
- Curology uses QR Codes to elevate the customer skincare experience and foster loyalty: Bitly Codes give Curology the power to inspire loyalty, continue with the conversion, and connect seamlessly with both online and offline customers.
- Daily Harvest uses QR Codes in shipments to encourage loyalty and boost referrals: In addition to QR Codes on in-store displays and product packaging, Daily Harvest also includes convenient referral QR Codes with each order, making it simple for customers to introduce friends and family to the brand.
The benefits of QR Codes for loyalty programs
Using QR Codes to digitize loyalty programs offers numerous benefits for customers and businesses alike, including:
- Convenience: Customers can simply scan a QR Code to instantly access their rewards, eliminating the need to carry a physical card.
- Higher engagement: With instant access to rewards, customers are more likely to engage with businesses and return for repeat visits.
- Data-driven insights: QR Codes enable businesses to track customer interactions, monitor redemption rates, and analyze patterns to optimize loyalty strategies.
- Cost savings and sustainability: Using QR Codes reduces the need to print physical cards or materials, leading to significant cost savings and helping reduce environmental pollution.
- Increases sign-ups: QR Codes increase loyalty program sign-ups by removing barriers like physical cards or lengthy paperwork.
Where to use QR Codes in loyalty programs
The beauty of QR Codes is their versatility—you can use them in various ways to engage customers and enhance loyalty programs. Here are just a few examples of how businesses can incorporate QR Codes into their loyalty strategies.
QR Code loyalty cards for easy access
Have you ever found yourself rummaging through your wallet or purse, desperately searching for that elusive loyalty card? Or worse—realizing you left it at home and missed out on hard-earned rewards? QR Code loyalty cards put an end to that frustration.
No more bulky cards or missed opportunities. Customers simply scan a QR Code to add their digital loyalty card straight to their mobile wallet, keeping it handy whenever needed.
But the perks don’t stop at convenience.
QR Codes deliver real-time updates on points, tiers, and rewards, so customers stay in the loop without waiting for mailed statements or tracking progress manually. It’s a seamless, stress-free way to keep the loyalty experience smooth and engaging—for them and your business.
In-store displays and POS for instant enrollment
Have you ever noticed a new customer hesitate when you ask them to sign up for your loyalty program at checkout? Maybe they just don’t want to deal with the paperwork, or they’re eager to wrap up their purchase and get home. It’s a common hurdle—extra steps can feel like a burden at the register.
QR Codes remove all those extra steps.
Customers no longer have to fill out lengthy forms or provide personal information by hand. The sign-up process takes seconds, ensuring accurate data collection for you and a frictionless experience for them. It’s a win-win that turns sign-ups into a seamless part of their shopping trip.
Businesses can place QR Codes on enticing signage at their checkout counters, entrances, and displays, motivating in-store buyers to scan and join the program.
Receipts, emails, and SMS for ongoing engagement
You can use QR Codes across various touchpoints, physical and digital, providing ongoing engagement opportunities. Integrate them into your email and SMS marketing strategies to target both current and prospective customers, encouraging them to buy by showing them the awesome rewards they can earn.
Adding QR Codes to digital or printed receipts is also a great way to remind customers of available rewards and encourage them to return for future purchases. It serves as a gentle nudge that keeps your loyalty program top-of-mind.
Product packaging and takeout for retention
That bottle of ketchup or takeout meal can do more than satisfy your customers’ hunger. You can use QR Codes on your product packaging or takeout bags to offer loyalty points post-purchase, encouraging customers to engage with your brand beyond the point of sale.
It’s also a great way to take a positive first impression to the next level. First-time customers might be hesitant to sign up for your loyalty program before they get a chance to actually try your offerings. By making it easy to sign up at their convenience post-purchase, you can build on the initial momentum and inspire repeat visits.
Social media and online ads for instant sign-ups
There were 239 million social media users in the U.S. in 2024, making it a prime place to reach and engage with customers.
Loyalty program QR Codes in social media ads and posts can lead users directly to your enrollment landing page, streamlining the process and capturing first-party customer data for future marketing efforts. It’s a powerful way to drive loyalty program sign-ups and nurture long-term customer relationships.
Use QR Codes in online ads as well, making it easy for potential customers to join the program without clicking through multiple pages or forms. The ease and convenience attract more sign-ups, boosting loyalty program membership.
How to set up a QR Code-based loyalty program
Setting up a QR Code-based loyalty program may seem daunting, but it can be a smooth and efficient process with the right steps. And we’ll walk you through them below.
Choose the right QR Code solution
Selecting the right QR Code generator is crucial to the success of your loyalty program. Look for a platform that offers:
- Dynamic QR Codes: Unlike Static QR Codes, which are permanent, you can change a Dynamic Code’s destination at any time, making it easy to keep your loyalty program content up to date.
- Customization options: Branding your codes with your colors, logo, and a unique frame and CTA helps increase customer recognition and trust, encouraging more scans.
- Custom short links: Behind every Dynamic QR Code is a URL—and another opportunity to increase brand awareness. Instead of a generic URL, use a concise short link, branded with your domain and custom back-half.
- Tracking capabilities: One of the big benefits of QR Codes is the tracking data they generate. So make sure your chosen platform offers real-time data on scans, as well as advanced analytics to help you understand performance.
Integrate QR Codes with your CRM and POS system
Integrating QR Codes with your customer relationship management (CRM) and point-of-sale (POS) systems can provide valuable insights into customer behavior and allow for a more personalized loyalty program experience.
But to integrate, you need to:
- Verify that your CRM platform and POS system support QR Code functionality.
- Ensure these systems can communicate seamlessly through APIs or third-party integrations.
To sync QR Codes with your CRM, you should:
- Configure your CRM platform to capture data from scanned QR Codes, such as customer IDs or loyalty activity.
To automate point allocation and redemptions:
- Link your POS system to your loyalty program.
- When a customer scans a QR Code, the system will recognize the action and automatically update their points balance or process rewards.
This setup eliminates the need for manual tracking, streamlining the customer experience and enhancing operational efficiency.
Engage customers with personalized rewards
65% of U.S. adults play mobile games, making gamification a powerful tool for customer engagement. QR Codes can help you easily incorporate gamification into your loyalty program.
You can offer mystery rewards, schedule bonus point days, or even create a game that customers can play for extra points. Use insights from customer data collected through your CRM integration to offer personalized rewards and promotions.
Tiered loyalty rewards based on customer behavior can incentivize customers to spend more and unlock that next level of perks.
How QR Codes improve loyalty program tracking and optimization
QR Codes offer real-time tracking and analytics for loyalty programs, giving businesses valuable insights into their program’s effectiveness. With each scan of a QR Code, businesses can see which rewards are most popular, where the scans are coming from, and even which browsers or devices are the most common.
Measuring customer engagement and redemption rates
QR Codes put metrics at your fingertips. You can track total scans, peak scan times, and even location-based activity (city and country) to see where and how customers are engaging with your loyalty program.
This data empowers you to identify top-performing rewards and offers and adjust your marketing strategies accordingly. For example, if your “Get 20% off your next purchase” QR Code gets 35% more scans than your “Earn double points!” code, you’ll know to focus more on discounts in future campaigns—which brings us to our next point . . .
Optimizing loyalty programs with data-driven insights
You can use the real-time data gathered from QR Code scans to optimize and fine-tune your loyalty program. In addition to adjusting rewards based on customer behavior and engagement trends, you can also conduct A/B testing with different offers and designs for valuable insights into what drives repeat visits and purchases.
Retargeting customers with personalized offers
Customers who have interacted with your loyalty program QR Codes in the past are a valuable audience for retargeting. Leverage this opportunity by sending personalized incentives based on past purchases or engagement. For example, if customers haven’t engaged with your loyalty program in over 60 days, offer double points or a discount on their next purchase.
Multi-touch attribution using insights from QR Code scans can help you understand which channels and campaigns are most effective for retargeting customers. It accounts for all customer interactions with your brand, tracking how different campaigns on various channels influence consumers’ purchasing decisions.
Why Bitly Codes are the best choice for QR Code loyalty programs
Bitly’s Dynamic QR Codes are the ideal solution for businesses looking to increase loyalty program engagement and streamline rewards redemption—and here’s why:
Branded QR Codes build trust and engagement
Branded QR Codes look more professional and trustworthy, encouraging customer engagement. Like all technology, bad actors may use QR Codes to their advantage, but a QR Code customized with your brand elements gives users confidence that the code is legitimate and safe to scan.
Bitly makes it simple to create QR Codes and personalize nearly every aspect. Customize your QR Codes with your brand colors and logo, choose unique patterns, and even add frames and CTAs to make them easily recognizable and reinforce your brand identity.
Advanced analytics to track and improve performance
There’s not much point in implementing a customer loyalty program if you can’t track and analyze its performance. After all, why would you want to invest in something without knowing its return on investment?
Bitly Analytics gives you real-time insights into your QR Code loyalty program, collecting data on:
- Total scans
- Scans over time
- Scans by location (city/country)
- Scans by device (iOS/Android)
- Scans by referrer
Armed with this data, you can pinpoint which offers and marketing materials are making the biggest impact, and then use those insights to tailor future campaigns.
Integration with any loyalty program platform
Nothing is more frustrating than investing in a new tool only to discover that it doesn’t integrate with your existing systems. But you don’t have to worry about that with Bitly’s QR Codes—they work seamlessly with any loyalty platform that uses a URL, including Shopify, Square, and PayPal.
In fact, you can find integrations with dozens of popular software solutions in the Bitly Marketplace. Connect Bitly with all your tools for streamlined loyalty program management.
Start growing your customer loyalty with QR Codes today
QR Codes offer a seamless and efficient way to increase brand loyalty and customer retention. They provide unmatched convenience by integrating effortlessly with existing loyalty program platforms—plus, you can easily customize them to reinforce brand recognition and encourage more scans.
With Bitly’s branded, trackable Dynamic QR Codes, you gain valuable insights into customer behavior, helping you optimize your loyalty program for higher engagement and performance. And when a campaign ends, it’s simple to repurpose existing codes for new offers—just update the URL through Bitly’s user-friendly dashboard, and you’re good to go!
Sign up today to take the first step toward a smarter, more effective customer loyalty strategy!
