Rewards cards can be a valuable benefit to your company – and now the data have been released to show that. According to a recent research by YouGov 37% of British customers have participating in a loyalty plan.
What is the secret of their achievement? What are the reasons why brands should make use of these programs? The answer to both questions is straightforward; when you reward your customers for their purchases through a loyalty program you can increase the likelihood of them being loyal to your company and thereby increasing the business to return.
They’re not the only ones however. There are many reasons to consider developing a strategy for your company. This article will explore the most popular five. Before that, an explanation of the history of loyalty cards.
What is the history behind loyalty cards?
The concept of offering customers rewards has been in the news for a long time however it wasn’t until the year 1995 that the first loyalty cards were introduced on the UK retail sector.
Tesco Clubcard led the way by introducing a personalized discount scheme that would encourage loyal customers towards the company. The scheme quickly started to be rewarded by delivering a staggering 28% growth in spending by cardholders just one year after.
Later, other large brands followed suit and, today, almost every major business offers an incentive program for loyalty.
1. Creates a long-term relationship with the customer
The idea behind loyalty programs is to draw people back into your company to return for more, by offering deals and offers to build an ongoing relationship.
This method is not just very effective at keeping customers, but it also results in more engagement throughout the business as customers are more committed to the company’s brand.
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.
Numerous brands have reacted to this change and are now introducing personalized loyalty card offerings – typically through interactive apps. They make use of data about consumer’s personal preferences and previous purchases to design special offers that are specific to their customers. Establishing a deeper connection with customers like this could create a stronger relationship with them.
3. It provides a fantastic customer experience
The constantly evolving market for customer demands means that customers are seeking immediate rewards through loyalty schemes instead of the traditional build-up scheme. Finding the ideal balance is vital.
Rewards programs that give customers rewards closer to the time of purchase like a sign-up bonus or instant cash off their next purchase could encourage customers to come back. This could set your company over the competition, while avoiding the cost of joining or signing up.
4. Convert customers into brand ambassadors
Word-of-mouth-marketing is one of the most powerful tools to promote your branding. Programs like loyalty cards provide your business with an increase chance that your customers will share the news with their friends and family about your company.
This leads to more people speaking about the brand and which leads to more customers signing up to your program and could lead to benefits like higher sales, too.
5. Create a community
Customers who are already customers pay six times more money than brand new ones, which highlights the importance of keeping customers happy. Furthermore, they are more likely to remain loyal to the company by their values and beliefs more than the products.
Companies are leveraging this by joining forces with local businesses to develop joint loyalty schemes which offer all-inclusive deals which can be used at any retailer within the group. It’s an excellent way to create the foundation of a community in which loyalty can be shared.
Did you know? You can find loyalty card printing on the Pressola website…
Successful loyalty card schemes: My Starbucks Rewards
In 2012 Starbucks introduced their new prepaid membership card to 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 popular loyalty programs available and allows users to gain access to their points wherever they are. As a result, the engagement of customers on their social media increase and bring a well-established point-based method for customer loyalty into the modern age.
To motivate customers to join their rewards program and to further encourage customers to use their rewards programme, they recently joined with Spotify to give their loyal customers the chance to stream music that is played at Starbucks for free , which demonstrates the effectiveness of a brand-to-brand collaboration can be when it comes to the form of a loyalty card.
After you’ve made your decision on launching an incentive program for loyalty cards to your business, you can 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 customers will appreciate today.