Many businesses in the UK introduce loyalty cards programmes to retain customers. Instead of creating new customers right now, you can work on maintaining a healthy relationship with your current customers. Today, businesses can do this by understanding their customers and finding ways to make their lives easier and better. Like any other relationship, its foundation has to be built on something, and if it’s exploited, customers might move on. Customers tend to be habitual and enjoy benefits from brands or stores. So, are loyalty cards worth the effort? Below, we will explore their benefits to businesses and customers.

What are loyalty card programmes?

Loyalty cards are cards that track how much a customer has purchased. A company would then reward the most loyal customers based on how much they bought to motivate them to return.

How effective are they? Benefits of loyalty card programmes to businesses

• Increase in sales.

A loyalty card often encourages your customers to come back repeatedly, which means the more they come, the more your sales increase. Special offers, discounts or attractive reward schemes like that free double shot latte can motivate customers to come back and shop more in your business. The good thing about this is that it won’t cost much to reap the benefits.

• Boost customer retention.

When customers trust your brand, they are more likely to shop more with you. Loyalty cards will boost Customer retention by ensuring they keep coming for more. Retaining older and loyal customers will help you increase revenue compared to new ones. Statistics show that acquiring new customers can be 5 times more expensive than retaining one.

• Easier to manage.

Another notable advantage of loyalty cards is they can practically run by themselves. Once your cards are ready, you can hand them to your customers as they come to your store and they likely not going to say no. Pretty easy, right? Loyalty cards are very self-sufficient in that customers who come to your store can hand their cards and you can stamp them according to your offers. Easy-peasy!

• Effective costs.

Loyalty card programmes will go easy on your pockets, especially when choosing loyalty card printing schemes over digital ones. There are many free royalty cards templates available online that you can customize if you don’t have the time or resources.

• Brand reach and exposure.

As we have seen earlier, loyalty card programmes are a great way for customer retention but they are also good for new customer attraction. This is when you offer free rewards or exclusive deals to a product that the customer would buy anyway. They can also inform their families and friends through word of mouth if your offers are worth bragging about, hence pushing your products to new markets that you may never have reached before.

• Healthy competition.

Loyalty cards schemes can be a smart way of competing with other businesses that sell the same product as you. A customer might be inclined to buy a product from a different store, but if they have been compiling points from your loyalty card, they will likely stay with you.

How are loyalty card programmes effective to customers?

• Customers love gifts.

Shocking, right? Studies show that 84% of customers prefer shopping where they are offering loyalty cards, and they spend their time looking for them! Failing to provide loyalty card schemes can keep customers away.

• They don’t require much effort.

Mixing customer experience in your marketing has become more important over the years. You can do this by ensuring that the customer’s journey is as low effort as possible. Studies show that 96% of customers who experienced high effort tend to be disloyal, compared to just 9% who experienced low effort.

• Instant reward.

Loyalty card programmes could be very effective if they were awarded fast. When a customer has filled the card, the immediate reward motivates them to continue shopping more and gives them a sense of gratification after shopping at your store regularly.

• Customers feel they got a more valuable deal.

Loyalty card schemes make customers feel they get a better deal than the one they were getting before. Rewards make customers think they are getting more of their money, even if it means spending more to get the reward.

Points to note for an effective loyalty programme.

• Boost the efficiency of your Point of Sale (POS) system.

Most customers understand that setting the reward from a loyalty card can take some time. However, it can be frustrating to customers and others waiting to be served when it takes too long, for instance, searching through a slow app or searching in their wallets to make a purchase.

You can avoid this by using cards that are unique and easy to spot or your brand logo that is easy to recognize. When using a digital loyalty card program, ensure that the website runs efficiently and the customers can easily access their ID.

• Reassure customers of privacy concerns.

Customers have to submit some personal information to sign up for a loyalty card program. However, some customers can be concerned about the safety of their personal information and the likeably of your business sharing this information with third parties.

You can reassure them by giving them the terms and conditions to help them know that their information is safe.

• Avoid spamming loyalty cards.

It’s important to communicate with your customers to make sure your brand is fresh in their minds. However, do not stay too much into contact. Unnecessary emailing can feel a little too overwhelming and sometimes intrusive.

To make sure your customers feel comfortable, you can frequently contact them. Sending an email once a month or once a week can feel less intrusive than sending them after a few days. It is also important to send important information so that customers can feel it’s worth their time to open and read them.

Talk to us today
Want to learn more about loyalty cards and to set up a loyalty scheme that is suitable for your business? Perx Rewards are here for you. Book a demo of our platform or contact us, and we’ll help you.

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