What are the benefits of Receipt Scanning Technology?

As you might already be aware, receipt scanning has emerged as a very useful innovation in many industries, and has already become an integral part of many business’s operations.It is undeniably a simple and convenient method for customers in a range of situations.But what are the benefits of receipt scanning from the brands point of view? And is it worth adopting receipt scanning methods for your business and in particular, loyalty strategy?In this article, we’ll outline the three key benefits of integrating receipt scanning technology into your company’s operations. Then you will be well equiped to decide whether they are applicable to your specific business.

What is Receipt Scanning Loyalty Technology?

Our innovative Receipt Scanning loyalty technology enables brands to connect with their end-customers and gather valuable purchase data.  Receipt Scan technology allows brands to run campaigns or loyalty rewards programs without having to put any codes on packaging or integrating with any point of sale systems. It is an incredibly simple process for the brand and the customer!Learn more about our receipt scanning technology here.

How It Works

Customer makes a purchase

Uploads receipt

Loyalty credits are awarded

How does Receipt Scanning Loyalty Technology work?

Customers can submit receipts in a number of ways, including uploading a photo through an app, webpage or email. Essentially our system automatically reads and interprets the data and values on the printed receipt. Loyalty credits are applied to the customers account and real-time data is available for insight.

What are the benefits of Receipt Scanning Technology?

1. It is a powerful tool for collecting invaluable customer data

From a “customer retention” angle, receipt scanning makes it very convenient for consumers to share their data with a brand. In turn this allows the brand to offer an increasingly personalised shopping experience with every new transaction (in conjunction with a digital loyalty program).As an example, Stamp Me Loyalty Solutions’ award-winning loyalty technology converts customer receipts into data, in order to provide actionable insights and deliver enticing rewards. The receipt validation software analyses the data on customer receipts and automatically uploads it to the rewards platform database.This solution doesn’t require any costly point-of-sale integration, which makes it incredibly easy to implement across numerous distribution channels and multiple locations.The data collected from receipts is extremely valuable for gaining insights into:

• how much consumers spend
• where purchases are made
• what other products are in the consumer’s basket
• what other products the consumer viewed
• times and dates of transactions
• other crucial data points

This information is gold for marketers.Why? Because it offers an unprecedented glimpse into what your customers want, and how they want it. From there, you can segment your customers into categories such as:

• VIP customers
• frequent customers
• infrequent customers
• lapsed customers
• seasonal customers

By dividing your loyalty program members into these categories, you can directly engage with your most important customers (the VIPs) while incentivising other customers to move up the value chain. For example, from infrequent to frequent, frequent to VIP and so on.

Case in Point: Sunrise Records’ Club Sunrise Program

Image Source: Club Sunrise

Canadian record store chain Sunrise Records uses Stamp Me Loyalty Solutions’ receipt scanning technology to operate its loyalty program.

Customers simply download the Club Sunrise app, sign up, and upload a photo of their receipt through the app every time they make a purchase of $20 or more. When the customer uploads a photo of their receipt into the Club Sunrise app, a stamp is automatically added to their tally.Every time they fill their stamp card, they receive $5 off their next purchase. Members also gain access to special perks like double stamp days, $100 gift card draw every month, 5% off when you sign up, and exclusive rewards and gifts with purchases.Not only has this program done wonders for Sunrise Record’s brand loyalty and customer retention, but it’s also allowed the record chain to gain invaluable insights into their most frequent customers, and tailor exclusive offers and rewards to accommodate each customer’s individual needs.As a result, every Club Sunrise member enjoys a personalised shopping experience with Sunrise Records, which extends far beyond the shop walls.Speaking of “beyond the shop itself”, let’s explore the next reason why receipt scanning is so useful.Read the full case study

2. It helps brands bypass intermediaries to directly connect with end-customers

Image Source: spoiltpig

Receipt scanning is an ideal solution for brands looking to create a direct relationship with their end-customers.For example, how do brands that sell their products through intermediaries (like a supermarket, pharmacy, wholesaler or online retailer) directly engage their customers, when no direct contact between the brand and the customer is ever made throughout the entire customer journey?The intermediary is often distributing many brands, with no incentive to administer and promote one brand over its competitors.The brand is at the start of the chain and the customer is at the end of it – so how do you bypass all the other links in the chain, to directly engage the end-consumer? With receipt scanning.

A digital loyalty program using receipt scanning technology enables a direct communication channel with end-customers.Another well-known method that brands use to establish a direct connection with their customers is to put QR codes onto product packaging. However, there are some flaws with this method...Let’s say a candy bar maker is holding a competition to create a bit of hype around the product and increase sales over other candy bars that are also sitting on the same shelf in the supermarket.If the brand simply prints unique QR codes on each candy bar’s packaging, what’s to stop people from entering the draw without purchasing the candy bar?

By using receipt scanning technology, the brand can ensure that only customers who purchase the product (regardless of where they bought it from) can enter the draw to win the prize.The candy bar maker can put instructions on the packaging which prompt customers to download the app and scan their receipts upon purchase. By opting for this method, the brand is achieving several things:

• It’s simple and convenient for the consumer to enter the competition
• The candy bar maker is able to monitor entrants on even a global scale
• The possibility of fraud is drastically reduced
• The brand earns itself a valuable piece of real estate among the list of apps on countless consumers’ smartphones

3. It is an effective strategy for driving direct sales

Perhaps you don’t want your customers buying your products through intermediaries at all. Have you ever noticed those signs in many hotels, encouraging you to book directly on the hotel website, instead of through an online travel agent like Booking.com or TripAdvisor? Of course it makes sense that businesses want to drive direct sales – it prevents a slice of both the brand’s and the customer’s sales going to a third party.

This is true for businesses in any industry; from retail and hospitality to pharmaceuticals, tourism and fast-moving consumer goods.Receipt scanning loyalty technology can be used to create a short-cut between the brand and the consumer, incentivizing customers to shop directly with the brand directly.

Regardless of which means any given customer purchases your products through – online, in-person, over the phone or even via a third party app – the receipt scanning strategy ensures that the brand can still engage them from their very own home.Let’s say a business wants to gear its loyalty program towards rewarding customers for making purchases from the brand directly. Why not make it so that, when customers scan their receipts through the digital loyalty app, it unlocks various discounts, prizes and tailored offers that can only be redeemed through the brand’s own online store?

This would provide the brand with valuable insights into customer behavior (as mentioned above) while driving direct sales. Customers could also scan their receipts in order to accrue loyalty points, redeem rewards or enter the draw to win exclusive prizes in various competitions, for example. This system for receipt scanning loyalty technology is easily implemented across multiple outlets, and under various brand names and subsidiaries.