25 May Customer Loyalty Cards: How and Why They Bump Up Your Business
Are you looking for an effective way to improve your business? If you are, you know it starts with finding ways to increase customer satisfaction. There are tons of ways to make a customer happy, but there are very few as beneficial as giving out discounts or rewards. Customer loyalty cards are an efficient way to generate new business, retain old business, and stay ahead of the competition. It is an effective, yet simple marketing tool that should not be overlooked.
What is a Customer Loyalty Card?
Loyalty cards are simply cards that incentivize repeat customers. They help you collect consumer data and also give your loyal customers rewards on occasion. In a nutshell, when the customer signs up for the loyalty card, they are to use it every time they shop at your store.
The type of rewards they receive from shopping with you will depend on the type of program you set up. For example, some businesses utilize a point system. For every purchase made a customer accumulates points toward a discount or free purchase. Other businesses like grocery stores give discounts to card holders. If a customer has a card, they can get products at a lower rate than a customer who does not have the card.
Improve Your Business
The benefits of customer loyalty cards are endless and can essentially help you take your business to the next level. Here’s how:
- Improve Customer Retention—Getting customers is a battle all on its own, but keeping them is another. When you offer customers the opportunity to save more money by doing business with you, they are more likely to keep coming back. The more customers you can retain the fewer you lose to the competition.
- Increase in Sales—Loyalty programs encourage your customers to come back. They want to take advantage of the offers you have and get the reward that was promised. Therefore they will return more frequently, thus increasing your sales.
- Improve Product Awareness—If you have a new product you want to introduce, having a customer loyalty program will work to your advantage. For example, if you ran a café and wanted to introduce new muffins, offering customers a free muffin with every 5 stamps would allow you to introduce the product while increasing your sales.
- Increased Reach—to make a customer happy, you must provide quality products and services and throw in a reward from time to time. A happy customer will in turn encourage others to do business with your company by referring their friends. The more people you reach, the better it is for business.
- Improved Marketing—The key to marketing is creating the right advertisements to appeal to your target audience. When utilizing customer loyalty cards, you can retain shopping data that can help you improve your marketing campaign.
At the end of the day, customer loyalty cards are a great marketing investment that will eventually pay for themselves. They allow you to reward and learn more about your most dedicated customers, while also giving you the opportunity to increase your business. There are plenty of program options to choose from, so make sure that you select a loyalty program that will work best for your target audience and business structure.