What are loyalty cards?
Loyalty cards are discount cards given out by a business as a way to identify and reward regular customers, encouraging repeat business.
How do loyalty cards work?
Most large retail and supermarket chains in Australia have loyalty card systems that give regular customers discounts, with systems identifying the customer from scanning their card. Scanning cards can also be used as a system of accumulating “points”, with points gained for each purchase and discounts applied once a certain number of points are gained. Many cafes or coffee carts use a punch card or stamp system, with customers getting a free coffee when they accumulate a certain number of stamps (usually 10).
Loyalty and sim card systems can also be used in partnership with other companies, for example credit cards which also accumulate frequent flier points with a partner airline. This system is designed to boost demand for both companies.
A side benefit is that when customers are asked to provide some demographic data and personal identification in order to sign up to a loyalty program it can give the business information about its market (i.e. typical customer ages, what items different demographic groups most often buy together, which products are most bought by long term customers). Scanned cards also provide data about which particular customers buy each product and how often, with some businesses selling this data on to other companies.
What makes a loyalty card effective?
The most effective kind of loyalty card provides benefits to the holder for nothing more than repeated purchases, as this system is easy for customers to use and does not give any disadvantage to those who do not have a card. An example of this system is member cards at clubs and pubs, which generally work by giving the holder a small discount on all purchases as well as accumulating points, which can be used to buy drinks, when they play on poker machines.
A loyalty program is less effective, however, if the card holders have to take action in order to use it. A program requiring customers to go online to register, for example, will have fewer users than one where people are registered automatically. Long application forms will also turn customers away from a loyalty program.
How do I set up my loyalty card program?
Get in touch with Pendulum Logistics to get everything set up, from card printing to installing the correct software on your system, and reward your regulars!
