Rewards cards are a great advantage to your business and now the data are out to show that. According to a study conducted by YouGov three quarters of British customers are currently in a loyalty program.
So, what’s the secret of their achievement? Why should companies employ these programs? The answer is straightforward; by rewarding customers by allowing them to shop with your brand by offering a loyalty program, you can increase the likelihood of them staying loyal to your brand and thereby increasing customers back to your store.
There are many more benefits however. There are many reasons to consider developing a strategy for your company. This article will look at the most popular five. Before that, an explanation 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 however it wasn’t until 1995 when the first loyalty card was introduced within the UK retail sector.
Tesco Clubcard led the way in introducing a customized discount scheme that would encourage loyal customers for the business. The scheme quickly started to earn a profit by delivering a staggering 28% growth in spending by cardholders just one year after.
Then other major brands embraced the concept and, today, almost every major business offers an incentive program for loyalty.
1. Builds a lasting relationship with customers
The principle behind loyalty schemes is to draw clients back to the company to return for more, by offering discounts and promotions to create an ongoing relationship.
This method is not just extremely effective in retaining customers, but it also results in an increased engagement with the entire business, since customers are more engaged with the company’s brand.
Click here for the best loyalty card printing.
2. Customers are delighted and surprised by surprises
No longer do customers seek to collect points. Instead, they are looking for something fresh that is exciting and fresh when they decide to enroll 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 customer’s individual preferences and previous purchases to design special offers that are specific to the customer. Establishing a deeper connection with customers like this could develop a deeper connection with them.
3. Provides a great customer experience
The constantly changing market for customer demands means that customers are increasingly seeking instant benefits from loyalty programs – instead of the traditional build-up scheme. Finding the ideal balance is essential.
Rewards programs that give customers rewards closer to the time of purchase like a sign-up bonus or instant cash off their next shopping trip – could encourage customers to come back. This will set your business above others, and avoid charges for joining or sign-up fees.
4. Change customers into brand ambassadors
Word-of-mouth-marketing is one of the most powerful tools to promote your branding. Plans like loyalty cards provide your business with the chance to increase the likelihood that customers will share the news with their friends and family about your company.
This means that more people are speaking about the brand and and more customers signing up to your program and could lead to benefits like higher sales.
5. Form a community
Current customers are on average 77% higher than the new ones, which highlights the importance of keeping customers happy. Additionally, customers are more likely to stick with an organization by their values and beliefs more than the products.
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 of the retailers within that group. It’s an excellent method of creating an online community where loyalty can be shared.
Successful loyalty card schemes: My Starbucks Rewards
In the year 2012 Starbucks changed their members’ prepaid card for the UK by introducing The My Starbucks Rewards program. The new scheme transformed the customer experience and increased their loyalty by making visits rewardable with a an extremely fast point-collection system.
In addition, they created an app. This quickly became one the most frequently-used loyalty applications available that allows customers to access their points while on the go. This led to the engagement of customers on their social media rise and introduced a tried and tested point-based method for customer loyalty into the modern age.
In order to further motivate customers to join their rewards program and to further encourage customers to use their rewards programme, they recently joined with Spotify to provide loyal customers the chance to stream music that is played at Starbucks at no cost, demonstrating the effectiveness of a brand-to-brand collaboration can be when it comes to the form of a loyalty card.
When you’ve decided to make your mind on launching the concept of a loyalty program to your company, begin planning their layout. We can design customized loyalty cards, and we have the variety of sizes of cards and types of paper that are available. Create cards that your customers will be delighted with today.