Benefits Of Loyalty Cards For Businesses

The loyalty cards you use can be a valuable benefit to your company – and the numbers have been released to show that. According to a recent research by YouGov, three quarters of British customers are currently participating in a loyalty plan.

So, what’s the secret behind their popularity? What are the reasons why brands should employ these programs? The answer to both questions is straightforward; when you reward your customers by allowing them to shop with your brand through a loyalty program you can increase the likelihood of them being loyal to your brand and thereby increasing the business to return.

There are many more benefits however. There are many reasons to think about making a plan to run your business. This article will explore the most popular five. Before that, an overview of the history of loyalty cards.

What was the story behind how loyalty cards came to be?

The concept of offering customers rewards has been in the news for a long time but it wasn’t until the year 1995 that the first loyalty cards were introduced on the UK retail sector.

Tesco Clubcard led the way in introducing a customized discount program to build loyal customers for the business. It soon began to earn a profit by delivering a staggering 28% increase in spending by cardholders just one year after.

Later, other large brands embraced the concept and, today, almost all major companies offer the possibility of a loyalty program.

1. Creates a long-term relationship with the customer

The idea behind loyalty programs is to draw people back into your company to keep them coming back, by using discounts and promotions to create an unbreakable relationship.

This practice is not only extremely effective in retaining customers, but it also results in more engagement throughout the business as customers are more engaged with the company’s brand.

2. The surprise and delight of customers

No longer do customers seek to collect points. Instead, they seek something new that is exciting and fresh when they sign up in a loyalty program.

A number of brands have reacted to this trend and are now introducing personalized loyalty card services , usually through interactive apps. They utilize data on consumer’s personal preferences and previous purchases to design special offers that are specific to their customers. Establishing a deeper connection with customers in this manner can create a stronger relationship with them.

3. It provides a fantastic customer experience

The constantly evolving consumer demand landscape has meant that consumers are seeking immediate rewards through loyalty schemes instead of the traditional building-up program. Finding the right balance is essential.

Programs that offer rewards closer to the time of purchase for example, a signup reward or instant money off their next purchase will encourage customers to return. This could set your company above others, and avoid the cost of joining or signing up.

4. Convert customers into brand ambassadors

Word-of-mouth-marketing is one of the most powerful tools to promote your branding. Plans like loyalty cards offer your company the chance to increase the likelihood that customers will be able to share the news with their families and friends about your company.

This leads to more people speaking about the brand and which leads to more customers signing up to your program and the potential for benefits such as increased sales.

5. Create a community

Customers who are already customers pay six times more money than brand new ones, demonstrating the importance to keep your customers happy. Furthermore, they tend to remain loyal to an organization by their values and beliefs instead of the product itself.

Businesses are taking advantage of this trend by partnering with local businesses to develop joint loyalty schemes with all-inclusive benefits which can be used at any retailer within the group. It’s an excellent method of creating the foundation of a community in which the loyalty of members is shared.

Successful loyalty card schemes: My Starbucks Rewards

In 2012 Starbucks introduced their new prepaid membership card to the UK by introducing The My Starbucks Rewards program. It transformed the experience for customers and improved their loyalty changing visits into rewards with the help of an extremely fast point-collection system.

Additionally, they launched an app to go with it. This quickly became one the most frequently-used loyalty programs available that allows customers to access their points while on the go. This led to the app’s engagement with customers increase and bring a well-established method of customer loyalty based on points into the modern age.

To motivate customers to join their rewards program They recently joined forces with Spotify to provide loyal customers the chance to stream music from Starbucks for free , which demonstrates the effectiveness of a brand-to-brand partnership can be for the form of a loyalty card.

When you’ve decided to make your mind to introduce the concept of a loyalty program to your business, you can begin planning their layout. We can help with loyalty card printing, and have a variety of product and printing types available. Begin creating cards your customers will be delighted with today.