Loyalty strategy: Loyalty card program

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Loyalty strategy: Loyalty card program

How it works?
Loyalty card programs are an incentive plan that allows businesses (often in retail) to gather important information about their customers such as, demographic and transactional information.

Customers are offered product discounts, coupons, points toward products other rewards in exchange for actively using their card in-store.

The loyalty card program creates repeat business by offering participating customers something that is not available to non-participating customers.

Case study
SPAR’s My SPAR Rewards is a good example a loyalty card program. See website here http://myspar.spar.ie/.

Customers collect a loyalty card in any SPAR store. They have the option to register via application form in-store or online through the website.

A loyalty number is associated with the card and the account on SPARs loyalty platform.

SPAR stores have two prices displayed in the store, non-loyalty member prices and Loyalty member prices, when a loyalty customer scans their card during a transaction a discount is automatically applied to give the loyalty card holder the loyalty member price.

As well discounted prices SPAR run a range of loyalty offers to encourage loyalty card use in-store. Offers include buy 5 tea/coffees and get the sixth tea/coffee free.

Understanding their target audience helped them launch their saving club. The saving club allows customers to load money onto their loyalty cards and pay with the card as they please.

SPAR found their parent target audience find this particularly useful for Kids lunch or treat allowance.
My SPAR Rewards program engages regularly with their customer base using SMS and email to interact with their customers. SPAR use clever engagement techniques, for instance, their free birthday gift, to boost opt in’s to their communications.

Best Practices
Integrated Loyalty software – Invest in a loyalty platform that can integrate into your ePOS to ensure optimum data capture.

This integration means you can deliver real-time offers and promotions when your customer scans their loyalty card.
Use your data – Use you customer demographics, shopping behaviour and communications to gain insights into your customer’s expectations.

Structure your offers and communications around this data to boost engagement with your loyalty program and increase average spending.

Regular Communications – Communication is key to a loyalty card program to encourage people to go to the store. Offer additional points on sign up when they give their mobile number or email address and opt-in for communications.

Communicate promotions in the store regularly but aim to segment your target audiences and send tailored promotions via SMS and email to see a greater return on investment.

Review Regularly – As your data builds up and your loyalty members grow it’s important to review your loyalty programs effectiveness regularly.

Add new offers and promotions, rerun successful promotions, remove others and further segment your target audiences to gain a better understanding.

Best suited?
Retail and Convenience stores with a physical store presence are best suited to this type of loyalty strategy.
For more Case Studies https://www.azpiral.com/corrib-oil-customer-loyalty-case-study/

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