Digital Transformation In Order To Replace the Paper Stampcard


Are you also annoyed with collecting several stampcards for bakeries, butchers, coffeeshops and other retailers?

Every shop has his own way of loyalty rewards for their customers that results in several stampcards in any wallet. Luckily, three guys developed a solution in 2013 that is catching popularity among shops and customers throughout the whole country. Will the old-school collecting stampcard made of paper make room for the digital transformation called Piggy? The standard loyalty reward systems of the brick and mortar shops are obsolete, if it is up to the founders of Piggy. The time to collect stamps on a paper card after every purchase in order to get a free consumption at your next visit is outdated. This notice resulted in a business to digitalize this way of customer rewarding.

Piggy
The idea of Piggy is that a person can collect his/her points with the Piggy card or application (Android and iOS) by simply scanning their code at a shop that is affiliated with the Piggy system. Each customer is earning points for their purchases at a particular shop and these points can be exchanged for rewards (i.e. a free coffee, a free apple pie or whatever). It is the same idea as the paper stamp-collecting-card, but with Piggy you can use one card or application for the (circa) 500 shops that are compatible with the Piggy system right now. And they are growing fast..

The digital transformation in this case caused more then a replacement of the paper version. The application shows a map with the shops that are affiliated with the Piggy system; so Piggy holders can easily see the shops where they can collect points for rewards. The other way around is it an easy way for shops to attract new customers. Another feature for the shops is the newsfeed (i.e. funny facts, acknowledgements, promotions, etc.) within the application. The customers are able to share the message in the newsfeed to create a form of worth-of-mouth advertising for the shop. Using Piggy to do a part of the local marketing can reduce costly flyers and advertisements. At last, shops get a dashboard to analyze the data of their customers.

The question is if Piggy is capable of acquiring all shops in the Netherlands in order to outcompete their paper counterpart. It will be a tough mission, but certainly possible if they keep growing and will stay the only provider of their business. At some point, shops cannot refuse Piggy if a great number of shops in the country joined the Piggy system or when customers are asking for the possibility to use Piggy. The future will show what will happen with this digital transformation!

References:

http://piggy.nl/winkelier/

http://www.duic.nl/nieuws/studenten-bedenken-met-piggy-loyalty-spaarkaart-voor-utrechtse-winkels/

http://fd.nl/fd4home/ondernemen/1107998/nieuw-initiatief-om-klanten-de-winkel-in-te-krijgen

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3 responses to “Digital Transformation In Order To Replace the Paper Stampcard”

  1. 372092jw says :

    Although this is a nice initiative to replace the paper stamp card, I think it is very hard, if not impossible, to gain a big market share. In the blog is stated “At some point, shops cannot refuse Piggy if a great number of shops in the country joined the Piggy system or when customers are asking for the possibility to use Piggy.” I doubt that because there are already well established digitized programs. There are several other companies who have already digitized their stamp card (for instance the bonus bij Albert Heijn or the WE membership). So for that companies and clients there is no need to switch to Piggy.
    Besides that, some companies have their own way of providing bonusses to their client. They might not want to share their ‘stamps’ with other companies.

    So, Piggy is facing a very hard crusade…

    • 437664ek says :

      Thanks for your comment! I want to make two notes to clarify the concept of Piggy. Their focus is on little shops like bakeries, coffeeshops, butchers, etc. Not on the big established firms who have a digital system already. The second note is that each customer is collecting point for the shops separately. So points of one shop can not be transferred to another shop. The account of the customers administrates the amount of points per shop and will show you the points per shop. It is a way to collect points of different shops on one card/app.
      Sorry if this was not entirely clear. Thanks again for the effort to read and comment on my post.

  2. 357176wb says :

    I know where to look for a glimpse of the future of digital loyalty systems: Qustomer.be. This Belgian loyalty platform looks quite similar as Piggy, except for the small fact that they started a bit earlier, in July 2012 to be exactly. Qustomer currently has 1190 shops using their system and 840.000 users. Recently, Qustomer has been acquired by ING.

    The big difference between the two platforms is their home markets. The target market of both platforms consist of – as you mentioned – the small shops such as bakeries and coffee shops. In Belgium it is very common to shop in small traditional shops. Belgians buy their meat at the local butcher and groceries are bought in local grocery shops. In the Netherlands large retail chains have a way bigger market share. Dutchies just like to shop in supermarkets.

    I personally think that Piggy’s (and eventually Qustomer’s) growth will stagnate soon. Sadly, the number of small, traditional shops is decreasing and web shops and large retail chains are taking over. The platform does not work with web shops and large retail chains, such as Albert Heijn, have their own loyalty systems.

    Nice to see your interest in loyalty platforms. I must admit I am a bit biased though, as I did an internship at Qustomer last year. Great article!

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