Loyalty glossary
Short, plain definitions of the words around digital loyalty cards, wallets and customer data.
- Data processorUnder the GDPR, a company that handles personal data on behalf of a business (the controller), only on its instructions and under a contract.
- GeofenceA virtual perimeter around a real place; when a phone enters it, an app or a Wallet card can show a reminder.
- Membership cardA card that gives its holder a standing perk (a discount, an extra) while the membership is valid, often for a set period.
- Prepaid cardA card holding money the customer pays in advance, often with a top-up bonus, to spend later at the shop that issued it.
- Push notificationA short message shown on the phone's lock screen; on a Wallet card it appears when the card changes or the shop sends news.
- QR standA counter sign with a QR code that customers scan with their phone to join a shop's digital loyalty card.
- Relevant locationA place stored in an Apple Wallet pass that lets the iPhone show the pass on the lock screen when its holder is nearby.
- Stamp cardA loyalty card that collects one stamp per visit or purchase and gives a reward once a set number of stamps is reached.
- VIP tierA loyalty level (for example Silver, Gold) that customers reach after a number of visits or an amount spent, with its own perks.
- Wallet passA digital card (loyalty card, ticket, coupon) stored in Apple Wallet or Google Wallet that its issuer can update and that can notify the holder.
- Opt-inA customer's active, freely given agreement, such as ticking an empty box, to receive marketing or have their data used for it.
- CashbackA loyalty reward that returns a percentage of each purchase as credit the customer can spend on a later visit.
- ChurnThe share of customers who stop coming back over a given period; for a shop, regulars who quietly stop visiting.
- RFM (Recency, Frequency, Monetary)A way to rank customers by how recently they came, how often they come and how much they spend.
- Returning customer rateThe share of customers in a period who had visited before; a measure of how well a shop keeps the customers it wins.
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