A loyalty card program is a type of incentive program that allows a merchant/corporation to collect information about their consumer. In exchange for active participation in the loyalty program, the corporation’s consumers receive discount codes, vouchers, points toward purchases, or other loyalty rewards. Another goal of a loyalty card program is to generate recurring business by giving participating customers something that non-participating customers do not obtain, thereby creating value for the program, which attracts people to gain access to these perks.
How does Loyalty Card Program Work?
These cards are typically shaped like plastic credit cards, although they can also be keychains. A loyalty card’s barcode or magnetic tape is detected at the point of purchase. When clients receive their loyalty card, a hole is punched in it, or the barcode is scanned for each purchase they make. After the business identifies a particular number of holes or scans, the customer gains access to a special deal or discount. Customers are more inclined to return to the company to take advantage of the amazing deal or discounts they have earned. Loyalty cards are usually offered in different forms such as:
- Paper Punch Cards
- Plastic Loyalty Cards
- Digital Loyalty Wallets
Purpose & Benefits of a Loyalty Card Program?
Investopedia states that, Consumer loyalty cards provide information about client purchase behaviors and the types of products that can be purchased together. This helps businesses determine which rewards will be most enticing to their existing customers and whether certain incentives are more beneficial than others. Loyalty programs are particularly crucial for large companies that rely on repeat customers. And, like any other consumer loyalty program, they are intended to encourage repeat purchases, brand loyalty, and, most importantly, increase sales.
Let us understand the purpose of having a loyalty card program.
Customers who shop with you are repeat customers
Repeat customers spend more money at your corporation
Loyalty cards have been shown to impact people’s purchase behaviours considerably. So, let us learn about the advantages of loyalty cards.
Loyalty Cards Increase Sales Rate
A loyalty card system encourages customers to return to a store regularly by providing unique offers, discounts, and tempting prizes. As a result, the more they buy from the store, the more likely the business is to reward them. The best part is that the corporation does not have to spend much money to gain benefits. For instance, a points-based loyalty card program at a coffee shop may give its customer a certain number of points for every dollar spent. On accumulating a certain number of points, the customer is then eligible to redeem a reward at the coffee shop which may be a higher priced drink that they can avail at a decided discount.
Loyalty Cards Expand the Brand’s Reach and Exposure
Loyalty Cards Increase Product Awareness
How to implement a successful Loyalty Card Program?
When beginning a new business or expanding the consumer base, there are numerous options to consider. Creating a customer loyalty program may benefit the company if it aims to improve ties with its consumers and encourage repeat sales. Let us look at the simplest way to implement a successful loyalty card program that can be effective in any industry:
Understand the range of products customers would want to buy from the company
Offer rewards from the range of products customers wish to buy. Seeing their desired products as rewards will excite them to be part of the loyalty card program and encourage them to try other products they have not considered before.
Make it easy to earn reward points and simplify the redemption process.
It is key to keep members engaged with bonus points that will excite them to keep returning and purchasing more from the business.
Be creative while designing loyalty cards. One can design loyalty cards online, where there are a plethora of options. New businesses can try loyalty card designs online for free as well!
Examples of Successful Loyalty Programs
- Uber
Uber’s setup is all-inclusive, meaning all riders using Pool, UberX, and Eats can earn rewards. The customer loyalty program includes several levels of advancement. Riders can progress through the Blue, Gold, Platinum, and Diamond tiers to obtain access to excellent benefits and even upgrades to UberBlack and swiftly get points depending on the milestone unlocked.
- Nike
Nike’s customer loyalty program provides exclusive perks through collaborations with companies, including Apple, Classpass, and Headspace. As a result, Nike has many training applications to help its members reach their training objectives. Customers can use the Nike Run Club app for jogging or the Nike Training Club app to do strength training. Whatever they choose, they are sure to be rewarded. This is because any physical exercise results in a reward.
Loyalty Cards: In a Nutshell
To conclude, offering customer loyalty programs is an excellent approach to attracting and retaining loyal customers. This also helps to raise the profile of your brand. For your business to be successful, spending time getting to know your customers is crucial. Once that is resolved, you can concentrate on choosing a loyalty card on Design Wizard where you will find a plethora of options. Design Wizard makes editing loyalty cards for your business a breeze. As a result, you will be able to increase sales and brand loyalty by adding value.
Rahul Shevde
