As a modern consumer, price and product quality are two of the most important elements that you will take into consideration before you make a purchase, and as a retailer these are two of the biggest elements that you need to target. Combining the low-cost factor (they are usually free) and the fact that your customers will be able to get free gifts/discounts, loyalty card systems can quickly appeal to your customers and give you the edge over the crowd.
Usually relatively simple to set up and implement, loyalty card systems are an effective way for you to improve your stance in the marketplace without a huge financial outlay. In most situations you will be rewarding your customers with products you already sell, thus encouraging them to continue shopping with you
How does a loyalty card system benefit consumers?
For the consumer, a loyalty card system is a very effective way of getting something for nothing – or for something that they would usually buy anyway. Over time they can build up points on a card which can be exchanged for rewards, cash back and presents. Loyalty card systems can also give them the chance to be entered into prize draws where they might have the opportunity to win further prizes.
As a consumer, if you had to choose between a regular store and a store with a loyalty system which was offering the same product at the same price, a loyalty system could be just enough to get you over the edge.
How does a loyalty card system benefit a business?
From the perspective of a business, a loyalty card system is a way to really put yourself out into the marketplace, and more than that it’s a way to promote your business. If you are looking to really get the edge over your competitors then a loyalty card scheme can be a great way to do this. In essence, you are offering a service to your clients while keeping your overheads low (you are offering products that you get for cost price anyway) and this can enhance your image for a relatively small cost.