Why your business needs loyalty cards
Card schemes are instrumental for growing and mainting a loyal consumer base and thereby giving birth to greater profitability.
One might ask: why would a company want to target their existing customers? The answer is simple. It is approximatley 7 times cheaper to retain an exisintg customer than it is to acquire a new one.
Starting to make sense? A customer with a strong affinity for your brand is much more likely to walk an extra 5 minutes to your store even if they happen to be next door to a competitor.
Coffee chains are a good example of a business using loyalty schemes with great success. Not only do they enjoy repeat business but now they can make use of data which was previously unavailable to them.
An example of a coffee loyalty scheme is the classic buy “x ” amount, get one free.
A customer could purchase 9 coffees and receive their 10th one free.
Its not necessarily the reward itself which fosters loyalty, it’s simply the feeling of exclusivity and sense of belonging. This creates a strong affinity between the customer and the brand. Additionally, this is likely to result in new customer acquisition through word of mouth.