5 Reasons Loyalty Schemes Benefit Your Business

In today’s world of fickle consumerism, it’s important for businesses to find a sustainable solution to build loyalty across their customer base.

Loyalty and membership cards are increasing in popularity across a wide and diverse segment of businesses: from national gyms and coffee bars, to hotel chains and retailers. Whether you are offering priority membership, special privileges or points to save up and spend, customers love to feel loved. The combination of tapping into that feeling, as well as the practical benefits offered, evokes customer loyalty.

Here are our top 5 Reasons a loyalty card scheme could benefit your business

1. Customer Retention  

Most people have heard that it costs less to keep a customer than to invest in marketing strategies to acquire a new one. By supplying your customers with a loyalty card and offering them special deals or special privileges on its production, means they are more likely to make their future purchases with your company over the competition.

2. Identification of Customer Behaviour / Trends 

A simple loyalty card or membership scheme can help you understand your customers better and anticipate future buying trends. A gym might be able to tell that Jack Smith of Cambridge is regularly going to the gym in Bristol mid-week. Armed with this knowledge, they may offer Jack a mid-week massage in the Bristol health centre. Jack is then more likely to stay with his current gym, than swap to another, perhaps cheaper chain of gyms.

3. Cuts out the Competition 

By offering something of very little monetary value as a member benefit, it can help sharpen your competitive edge. For example, a national chain of hair dressers might offer all of their priority members the choice of a free 10 minute head massage. On their price list these cost £7.50. When the average spend of a typical client is between £80 and £100 it’s a no-brainer, given the value it adds to the client. The same principle applies to offering your customers their tenth coffee for free. They are incentivised to choose your product or service over the competition.

4. Increased Brand Awareness and Word of Mouth 

If Lisa Parker is impressed with your loyalty card scheme – which she of course is because you keep spoiling her with all these amazing offers based on her buying habits – she is very likely to sing your praises to her friend Betty Smith who currently shops with your competitor. People listen to their peers. Word of mouth is a great way to bring in new customers.

5. Winning New Business 

A loyalty scheme can also be used to win new business. Offering a handsome discount to first time buyers is a great way to induce loyalty with a new customer.   Another reward could be double points on a customer’s first shop over £20, using their new loyalty card.

To talk to Fiala Print & Mail about how your business might be able to build customer loyalty and acquire new business using loyalty and membership cards call us on 01371 832 002.