Saying thank you

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Fundamentals of loyalty marketing

We’re taught that the best way to show gratitude is to present someone with a gift, send a card or perhaps just a simple ‘thank you’ note to show our appreciation. Retailers prefer to say thank you with loyalty cards.

More and more retailers are seeing the benefits of loyalty programmes for their customers. It opens up another line of communication and allows customers to receive rewards while retailers maintain a good relationship with them.


Where it all began

There have been stories that the establishment of the retail loyalty system got its start in the late 18th century, when retailers provided customers with copper tokens that could be used for future purchases. This type of reward system paved the way for other forms of loyalty cards and packages. Today, the customer loyalty card has evolved to mobile apps, developed to help customers keep track of their purchases and any points gained from these purchases.


There are several reason why retailers are establishing loyalty cards. We take a look at the rise of loyalty programmes and how retailers can benefit from them:


Customer boost

It’s been proven that shops using loyalty programmes see an increase in repeat customers. In fact, a recent survey found that a repeat customer will spend 67% more at a store than a new customer.


Customer data

Loyalty cards provide vital market research for retailers, by giving them an overview on what type of incentives drive customers to shop at their store.


Your customers are happy

Loyalty cards benefit retailers and customers. Consumers will feel that their voices are being heard and feel special about offers that are exclusive to them.


With these benefits in mind, here are tips to get started on establishing a loyalty programme:


Target market

Refining the target audience is vital. Will the card be offered to all customers or regular customers? While it seems fair to offer the card to everyone, offering it to loyal customers – where the most profit is generated – may motivate others to join.


Build awareness

Introducing the loyalty card is important. Have staff mention the card when they deal with a customer or inform customers via email marketing or social media. This way, retailers are stimulating interest and reminding customers to use it.

There’s no doubt that over the next few years, the loyalty card will evolve. Where it goes from here no one knows, but it’s here to stay.

Contact your local retail systems suppliers for high-quality in-store software.

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