Glossary

Key terms in digital loyalty

Plain definitions of the concepts behind digital loyalty cards, customer retention and loyalty programs. Each entry answers the definition first, then explains why it matters, gives an example and points to the page on this site where it applies.

Apple Wallet Pass

A digital pass stored in the Wallet app built into iPhone, used for loyalty cards, tickets, boarding passes and coupons.

Cashback Loyalty

A loyalty format that credits a percentage of what the customer spends as value to use on a future purchase with the same business.

Churn Rate

The percentage of customers who stop doing business with you over a given period.

Customer Lifetime Value (CLV)

The total revenue a business can expect from one customer over the whole period they remain a customer.

Customer Retention Rate

The percentage of customers from an earlier period who are still customers at the end of a later period.

Digital Loyalty Card

A loyalty card that exists as a pass on the customer's phone, typically in Apple Wallet or Google Wallet, instead of as a physical card.

Geofencing

A location-based technique that triggers an action, such as a notification, when a customer's device enters a defined area around a place.

Loyalty Program

A structured way of rewarding customers for repeat purchases or continued custom.

Push Notification

A message delivered to a customer's phone by the operating system, shown on the lock screen or notification tray without the customer opening an app.

Referral Program

A structured incentive that rewards an existing customer for introducing a new customer to the business.

Repeat Customer

A customer who has bought from the same business more than once.

Stamp Card

A loyalty card that records one stamp per eligible visit or purchase and gives a reward when a set number of stamps is collected.

Looking for how these terms play out in practice? See the comparison hub, the use cases and the card formats.