Can my business receive real benefits from a loyalty card system?

  • by cwdevelopment
  • 29.04.2013
  • Articles

Every time you step into a department store you are usually confronted by some kind of offer, or reward scheme that the business can offer to you. If you are choosing between a number of different stores then this reward scheme can usually be something that gets you over the edge, and as such, for a business it can be a great marketing tool and a way to really set themselves apart from the crowd.

Loyalty card schemes work effectively as a client retainer and if you are looking for your customers to come back time and time again then the promise of an effective points system and a rewards scheme that they can really benefit from can do a lot to help their cause. By running an efficient loyalty card scheme you can not only target your clients’ needs, you can also gather the information that you need to improve the targets that you’ve set.

How does a loyalty card system operate?

A loyalty card system can be run in a number of different ways, but one of the most common ways that this type of system operates is through a rewards point system, and this means that every time a person makes a spend on their card, or purchases an item in your store they are awarded points, often based on the amount that they have spent in that transaction.

The customer is then able to collect points which they can redeem at a later date for either a selected gift or even cash that can be spent in the store. This enables them to purchase for free, items that they would otherwise have paid for.

What benefits can this bring to the customer?

For the customer, the ability to get something for nothing in the current economic climate is too good to be true. In most cases, the customer will be purchasing something that they would otherwise have had to purchase anyway, and therefore they are essentially saving points to put towards items that they would otherwise have paid for – saving them money.