The Loyalty Card is an instrument that offers benefits to the most frequent consumers of a business. It is a way of telling the public that it is worth creating a bond with a business and exclusively buying with them rather than migrating to the competition. How does this scheme work for both company and consumer?
In order to get a Loyalty Card, customers have to register. In the application form, they provide their name, address, date of birth and sometimes other information. This form can vary from business to business, but will usually capture demographic data and communication preferences.
After completing the form the customer will receive a Loyalty Card. When used, this card will collect customer data: shopping habits, product descriptions, department preferences, brand preferences, prices paid and more. By combining the application form with the data collected by the card, retailers can create an accurate picture of when, where and how people do their shopping. Loyalty card data helps us understand people’s behaviour.
With this information, you can personalise your customer’s experience with your business. This information can be used to create sales personas and strategies, implement promotions, develop new products and distribution channels among others. Customers who feel like a brand is listening to their needs are more likely to engage and purchase.
It’s vital to meet customers with the right message in the right communication channel. Having data is a great start to connect these channels and create an accurate customer profile. Well implemented loyalty programs always offer the best to customers, strengthening the relationship they have with you and your product.
However, a loyalty program can fail if organizations offer loyalty points to customers only when a purchase is being made — reducing the frequency with which some buyers can accumulate rewards.
There’s more to it than just the transactional nature of these programs- rewards could be earned by connecting a social media account, referring a friend, checking into your retail location or completing a survey. Just keep in mind that the rewards offered should match the action required.
Brands with a robust loyalty strategy powered by in-depth customer data is key to understanding your customers and pushing them to take action. Armed with these insights, brands can fuel programs that increase sales, earn loyal customers, improve their reputation and win big fans.
With a loyalty policy, you can get to know your customer and promote assertive campaigns aligned with their needs. With the data collected through the loyalty program, it is easy to have effective communication with your client while maintaining low advertising costs, resulting in better services at a lower price.
Redeeming rewards through loyalty programs strengthen customer relationships and create a more enjoyable shopping experience. This aids the consumption of more products and services creating a higher profit and a happier customer.
By utilising the information gathered through a loyalty card scheme effectively, we can easily create a scenario where both the customer and the company benefit. Now that’s a relationship that works.