Many businesses have introduced a loyalty scheme to boost customer retention. But just how effective is it for a business to offer rewards and discounts to their customers? We explored who loyalty cards really benefit – the business or the customer.
What is a Loyalty Card?
Loyalty cards are printed cards that track how many purchases a customer makes. The company would then give its loyal customers rewards depending on how many purchases they’ve made, which encourages them to become repeat buyers.
Benefits of Loyalty Cards for Business
- They Help Boost Retention
Loyal customers already trust your brand, so they’re already more likely to spend more. Loyalty and rewards cards help make sure your customers keep coming back for more! This is known as customer retention and increasing retention levels by just 5% can boost revenue by 25-95%.
- Increase Sales
When customers feel positive about a brand, they’re more likely to shop with them. And loyalty cards give them all the positive feelings!
They allow you to offer incentives that you know (from your prior customer data research) your customers will love, and therefore they’ll fulfil the requirements necessary to receive that reward. For example, a café offering customers a free slice of cake with every 8th cup of coffee they buy.
- Loyalty Schemes Practically Run Themselves!
Once you’ve printed your loyalty cards and gotten your hands on a loyalty card stamp, all that’s left is to offer them out to customers when they’re in your store (and we can assure you, they aren’t likely to say no).
After this, your loyalty programme is pretty much self-sufficient. Customers bring their cards back and you stamp them according to your offer – voila!
- They're Cost Effective
If you chose loyalty card printing over digital schemes, setting up your programme is never going to break the bank. You can even customise and print our free loyalty card design templates if you haven’t got the time or resources to design your own professionally.
- They Give Your Business a Competitive Edge
Introducing a loyalty scheme is a fantastic way of giving you the edge over your competitors. A customer may be swayed by a competitor’s offering, but if they’ve been working towards building points on your loyalty card, they’ll most likely stay with you.
Loyalty Card Benefits to Consumers
- Rewards They Actually Want
As long as your incentives are desirable to your target audience, loyalty cards are fantastic from a customer point of view too! It’s an added benefit from shopping with a store that offers a scheme like this.
- People Like Being Rewarded
Shocker, right? According to Technology Advice, consumers are 82.4% more likely to shop somewhere with a loyalty scheme and they actively seek out shops that do! So, failing to offer these kinds of incentives could be keeping customers away…
- They're Low Effort
Customer experience (CX) is becoming increasingly important for your marketing mix. And part of this is making sure that their journey is as low effort as possible. Analyst firm Gartner’s study states that 94% of customers would buy again from a company when they’ve had a low-effort experience, and 38% would pay more for a simpler service.
With loyalty cards, all the customer has to do to redeem their rewards is bring their card with them when they visit your business. This makes it a fantastic, low-effort marketing tactic.
- Instantly Rewarded
Your customer has been going into your store or café and regularly getting stamps on their card. When they’ve filled the card, they’re then rewarded instantly with the incentive. This quick access to rewards makes for fantastic motivation to achieve these rewards and leads to instant gratification.
- They Feel Like They're Getting a Better Deal
A key benefit of loyalty cards for customers is the feeling that they’re getting a better deal than they might otherwise be getting. That’s why sales and outlet retailers work so well! Discounts and rewards make customers feel like they’re getting more for their money, even if it means spending more to get those rewards.
Who Do Loyalty Cards Benefit?
Loyalty cards benefit everyone involved – both the business offering the scheme and the customers. You’ll be encouraging customers to spend more and more often, and your customers will be getting great deals from a brand they love!
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