Visit any coffee shop or a book store, and they will offer you customer loyalty cards at the checkout as a souvenir gift. They label it as a token of appreciation for visiting the store or chain, of course, but they are a very important piece of the puzzle in the marketing strategy. Your wallet may be overflowing with a huge collection of cards, you won’t mind adding one more to it.
Cards have always been used as an important business development tool, and loyalty customer card also serves the same purpose. But what is the definition of customer loyalty cards and how are they effective in business growth? Let’s dig deeper to find out.
In simple words, customer loyalty cards are punch cards offered to the customers for visiting a store, shop, or retail chain. These customer loyalty cards can either be given to every customer visiting the shop or only to the customers who enroll in their loyalty program. This depends on the marketing strategy and goals of the business. Once the customer purchase from the store, they get holes or punches in the card. After a specified number of punches or holes, they get a special offer such as discounts, deals, or gifts. This accelerates the customers’ purchasing habits to spend more, so they could have more holes and get rewarded.
Making customers work towards a specific goal is one of the fundamental principles of loyalty. Integrating them with the punch cards and you get the winning combination of customer retention and revenue growth together.
There are many different ways to understand the features and benefits of a customer loyalty card. Apart from punching holes, customer loyalty cards for business also influences customers at the point of decision making. Let’s define customer loyalty cards in a different way.
A customer loyalty card allows the customer to visit their favorite retail store time and again. It acts as a physical representation of the store, and when the customer wants to purchase the product again, the cards often influence them to visit the store again.
A study describes that 60% of respondents visited the same store if they had a loyal customer card with them. As the customer is encouraged to visit their favorite store again, businesses use loyalty customer card to retain customers for the long term and keep the cycle of shopping keep rolling.
While customers get identified with loyalty cards, businesses also get rich data on customer’s spending habits. This gold mine of data can be efficiently used to design marketing strategies that help in segmenting the target audience. When the customer returns to the shop in the future, the businesses exactly know the preferences and target the products as per the needs of the customer. If you know the customers well, the product will sell itself if you just place it in front of the customer.
Knowing your customer well is the best way to sell the product to a particular customer.
Not just businesses, loyalty cards are also very beneficial to customers. If the customer shops from a particular store time and again, they get percentage discounts. They also get superior deals, better offers, and free gifts on special events and occasions. Moreover, customer loyalty cards make it very convenient for customers as well as businesses. In short, it is a win-win situation for everyone.
As mentioned in the blog, customer loyalty cards have been known to nudge the customers to keep them coming back to you. A repeat customer is always more valuable than a new customer because they purchase more, get easily convinced, and generate more revenue for your business over the long-term.
Loyalty cards need to be tailored keeping in mind the requirements of your business. Get a loyalty partner such as Annex Cloud to help you design the same. Contact our loyalty card experts today!