How Does A Loyalty Card Program Work?
At present, many businesses have initiated loyalty programs to boost their customer retention. Do you want to know how effective it is for a business to offer discounts, upi payment cashback and rewards to its customers? Let’s move right into knowing detailed insights into the loyalty card.
What is a Loyalty Card?
A printed card that is used to track customers’ purchases is known as a loyalty card. Depending on how many purchases a customer makes, the company/organisation would reward its loyal customer and encourage him to become a repeat buyer.
You might want to know about the customer loyalty program. So, here are the details!
- A customer loyalty card program is an incentive plan for a retail business to gather customer data.
- The customers are offered coupons, product discounts, and points toward merchandise for their participation in the loyalty card program.
- Often the loyalty cards resemble plastic credit cards, and they also can be stickers or key-chain fobs. They have a magnetic stripe and barcode that’s scanned at POS (Point of Sale).
- The loyalty card quickly identifies the user/customer and sends detailed information about what the customer bought.
- The database’s information helps the retailer influence the buying habits of his customers.
- As per the research of Boston University, almost ninety percent of American shoppers have listed in the loyalty database.
Advantages of Loyalty Cards for Business:
- Increases Sales: When users/customers have a positive note on a brand, they intend to shop with them. The loyalty cards help in giving them a good impression. They offer incentives, and your customers will love that. Hence, they will fulfil the needs necessary to receive the rewards.
- Boost Retention: Loyal customers are likely to spend more as they already trust your brand. Rewards and loyalty cards ensure your customers come back for more shopping. This is known as increasing customer retention levels.
- Cost Effective: Over digital schemes, if you opt for loyalty card printing, then setting up your program will never break the bank. It’s easy for you to customise and print the free loyalty card design.
- Loyalty Programs Run Themselves: Once you’ve gotten your hands-on loyalty card stamp, it offers them out to the users/customers even when they are in the store. Word of mouth plays a huge role here.
- Competitive Edge for Business: A user/customer may get swayed by a competitor’s offerings. Initiating a customer loyalty program is one of the fantastic ways of having the edge over your competitors. But, of course, if they are working towards creating points on the loyalty card, they will stay with you.
Advantages of Loyalty Cards for Customers:
- People Like Being Rewarded: As per the technical advice, more than 82% of consumers are likely to shop with the loyalty program and seek out shops! Hence, failing to provide all these kinds of incentives keep customers/users away.
- Rewards: From the customer’s point of view, the loyalty cards are fantastic if you continue the incentives to your target audience. It is an added benefit for the customers.
- Instantly Rewarded: If your customers fill the cards, they are immediately rewarded with the incentives. This quick access makes for motivation to attain the rewards.
- Less Effort: It is essential to have a good-rated customer experience for your marketing mix. Also, make sure that their whole journey is a low effort. According to an Analyst Firm Gartner study, more than 94% of the customers purchase again from an organisation/company when they had less effort experience. In addition, all customers must redeem their rewards with them when they visit your business. This can make it a low-effort marketing tactic.
- Feel Like Getting Better Deal: One of the significant benefits of customer loyalty cards is a positive feeling that they are getting a better deal. Hence, outlet and sales retailers work well! Rewards and discounts make your customers feel like they are getting more value for the money spent.
Both the business and customers acquire benefits from loyalty cards. You will be encouraging the customers to spend more often; apart from that, your customers will get great deals from the brand they love! I hope this article helps you to know the benefits of loyalty cards and how they work.
