Top 5 Reasons Why Loyalty Card Programs for Business Are Beneficial


If your company is looking for new, and effective, ways to expand your customer reach, you might consider a loyalty card program app for business. A loyalty card program is a customer participation program that offers an exchange. For example, a loyalty card can collect data on customers while providing, coupons, points, or merchandise after a customer purchases a specific amount in goods and services or makes a certain number of purchase such as a free cappuccino after 10 purchases. 

Of course, participation should be voluntary. Yet, you’ll find many customers want to participate in a program that rewards them for their loyalty–especially if they are already of a fan of your products and services. In addition, this isn’t a new concept that requires an extensive explanation. Many consumers already have one, or several, loyalty cards in their wallet. It’s critical to note that loyalty programs aren’t just for enterprise businesses or large chains. 

A loyalty card program can be used by a business of any size and can keep customers coming back for more. According to this loyalty study, out of 3,162 respondents, 80% stated they would prefer to do business with a company that offered some type of loyalty program. So, what are you waiting for?

Customer Loyalty Card Program

1. Loyalty programs are cost-effective

Many smaller companies shy away from customer loyalty programs because they worry they will cost too much to implement. One of the most intelligent things a small business can do is to create a smart marketing budget. Regardless of the size of the company, resources can be tight. Without a marketing tactic, you can’t effectively tell potential consumers what to buy and why. 

Some small businesses can get by on word of mouth–for an infinite amount of time. If you want to scale, you need to communicate to your target audience and position your business effectively within your industry. Your goal should also be to differentiate your company from your competition. 

One way to do so is with a loyalty program that is convenient and easy to use such as a loyalty card app. When you realize that acquiring new customers costs companies seven times more than it does to retain your current customers, then implementing a customer loyalty card program doesn’t seem so expensive after all. 

Plus, returning customers can be quite profitable as they tend to spend more–on average–than a first time customer. Think of your favourite coffee shop. Remember the first time you went there? You probably ordered one drink, and perhaps, a baked good. When you realized you like the product, you came back for more. Yet, over your next few visits, you decide to try their other products. 

Maybe, on your fourth visit, you bring a few friends with you and spend four times what you spent on your first visit. There is a high value of retaining loyal customers, and a loyalty program can get you there. 

Even if you do incur expenses around your loyalty program, it will be compensated for by your additional business. As a result, you spend less money on marketing.

2. It improves your company reputation

With a loyalty card app for business, you encourage new clients to become loyal, and you also make your clients feel valued. It shows that you appreciate their patronage. The more a consumer feels valued by your business, more likely they are to come back and recommend it to their friends, family, acquaintances, and social media followers. In essence, it increases the scale of word-of-mouth marketing by several multiples. 

A good reputation can be your company’s most valuable asset. Still, a good reputation must be earned. This is where your clients trust you. If a consumer feels your products and services meet their needs, but also, they are treated with excellent customer service and appreciation–they will then start to trust your brand. 

The key is to be consistent. A customer loyalty program e can help to attain consistency for an improved business reputation. According to this infographic, loyal customers are worth up to 10x as much as their first purchase. 

3. It keeps things simple

You can design your customer loyalty program any way you like, but you can also ensure that things are both simple and straightforward. This keeps things transparent and honest between your business and your customers. Don’t bother with confusing terminology or complex systems that will turn off your customers and prospects. They want to take advantage of something easy, and that makes them feel rewarded. 

One such simple method is with stamp cards. This might be the most inexpensive route, where you can print your own customized cards on thick stock paper and offer a stamp for each purchase. After, say a 10th purchase, the customer gets a free appetizer or a free drink. Customers don’t have the time to jump through hoops to use your loyalty program. 

If it gives them a headache or is too time-consuming, then they will no longer feel rewarded. And, no one wants to wait months for a reward either. Keep it simple using a points system, stamps, or a spending system–earn a free item after you spend $35. 

Yet, some customers find it bulky to fill their wallet with cards. So, why not provide a convenient solution for them by offering a digital loyalty program so your customers can earn stamps on their phone and not have to worry about old fashioned paper cards which can be easily lost or forgotten. 

4. Enhances growth

Depending on the type of reward system you implement, results can vary, but loyalty programs have been proven effective at stimulating company growth. Even if you don’t utilize any other type of marketing strategy, a loyalty card program can work to expand your business consistently. 

Loyal customers arrive, purchase their favouite products, and bring their friends along. Their friends see the rewards and want to download your rewards card app as well. It builds trust, and your reputation–as noted earlier–when prospects see how much you value your customers. Everyone wants to feel recognized for their patronage. A loyalty card program is an excellent way to do this!

5. It is fun!

Who doesn’t love a good game? A loyalty card app can be designed like a game to encourage your customers to come back again. Think of your target demographic and their interests. 

For instance, the Postmates app offered discounts for delivery during major sports events. McDonald’s has the Monopoly game. Allow your customers to play games in exchange for rewards such as free food or other prizes. Take a look at the myVEGAS app, which was named the “Best of 2016” by the eGaming Review. 

You play games and get real rewards to use in Las Vegas such as free tickets to shows, free drinks, free coffee, discounted room rates, tours, and more. The more you play, the more points you earn. So, people can have fun while earning their rewards. 

And, when it’s structured like a game, you encourage prolonged interaction with your loyalty program. Instead of getting points per visit, customers are thinking about your business each and every time they play your loyalty rewards game.

Final thought

Every marketing strategy must include a tactic for attracting new customers. Yet, taking care of retaining loyal customers is a much more profitable strategy, as you can see with the above statistics. Furthermore, loyal customers will bring in new business when they take their acquaintances with them. 

There isn’t any question that a loyalty card app is a smart and cost-effective marketing tool. You retain customers while improving your brand reputation. If you haven’t incorporated a customer loyalty program, you may be leaving money, and customers, on the table.

So what are you waiting for? Contact us for information on how we can help you implement an effective customer loyalty program for your business.

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