Everything you Need to Know About Customer Loyalty Cards

by Bistriti Poddar |

Everything you Need to Know About Customer Loyalty Cards

Customer Loyalty Cards are a powerful marketing tool that influences customers to keep returning to your business. In return for their loyalty and dedication, the customer is rewarded with special offers, points and discounts, that help them engage even more deeply with the brand or business and promote additional purchases.

Regardless of increasing competition and ever changing external situations, Customer Loyalty Cards are strategies that retain old customers, as it is much more cost effective than getting new customers,(almost 500% more) and they are also a great way to understand their buying preferences.

Once a customer buys from your brand, there is a 27 percent chance that they will return. This retention rate increases to 45 percent after their second return purchase and touches 54 percent by their third return purchase.

Benefits of a Customer Loyalty Card

Loyalty Card Programs are massively important when it comes to retaining old customers, or enhancing customer loyalty. The urgency of loyalty programs were truly understood when the number of competitors targeting the same set of audience grew. Therefore the number of similar looking products in the market, having the same attributes increased. The need to have loyal customers, hence became more important yet more difficult.

They make a complex and daunting process, seamless and easy to use. Simply scan your loyalty card to earn points or even better scan your phone screen to earn points through a digital app.

Few advantages that come with the Customer Loyalty Cards are-

  1. Customer loyalty cards inspire a return visit which leads to increased sales and loyalty. As a brand, you don’t have to do a lot, perhaps just a cup of coffee, or a discount off a particular product is enough to have them coming for more.
  2. Loyal customers who vouch for your rewards will also encourage their friends to try out your loyalty cards and its benefits. Which leads to increase in brand reach and referrals.
  3. Loyal customers already know your brand and trust you and loyalty cards will only enhance your retention rates. After all, increasing retention by just 5% can lead to a revenue boost by 25%-95%.
  4. They are also very cost effective and give your brand a competitive edge.

Existing in three forms (Paper punch Cards, Plastic Loyalty Cards and Digital Loyalty Wallets), a customer loyalty card system helps a great deal in analyzing a customer’s purchase to understand and better strategize marketing efforts and as well as retain customers, as 82% of companies agree that retention is much more cost effective, and 65% of a company’s business comes from existing customers.

Paper Punch Cards–  Punch Cards are an excellent way to reward your customer and at the same time attract them to your business for frequent buying. It is simply a token of customer loyalty. Getting a definite number of punches on your card, will have you qualified for free gifts, vouchers, and exciting offers. Dunkin’ Donuts makes their coffee even more popular with an amazing loyalty punch card. You can grab a free bagel or free coffee with frequent purchases.

Plastic Loyalty Cards–  A plastic loyalty card, keeps a track of your purchases, and with every transaction, credit points are stored, which can be later used to buy products, and get discounts. Loyalty cards help a great deal in understanding the shopping habit of buyers and increase brand commitment.

Digital Loyalty Wallets– Digital Loyalty Wallets grant credit points to customers on purchasing products of  certain value with more ease, as traditional loyalty programs have evolved technologically, keeping track of purchases made by every customer and their buying habits.

Having a record of all of it, stored digitally, it is ten times more intuitive, interactive as well as convenient.

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