3 Ways Customer Loyalty Cards Boost Profits
As a business owner, you are always looking for ways to bring new customers in, but also to keep current customers coming back. Once you get a customer into the door, how do you bring them back again and again? There are a lot of theories out there about how to bring customers back, but one of the most effective ways to bring improve retention is through a loyalty card program.
Business all across Canada use loyalty cards and you should consider it as well. A loyalty card program is the most pure version of reciprocity for businesses: you give a customer something that they return the favour by continuing to give you business. There are a number of ways to go about implementing a loyalty card program – you can have punch cards that reward multiple purchases; you can have points cards (which your business can acquire alongside card printers and security products for a reasonable price)that encourage people to spend money in order to receive free stuff; and there are VIP rewards cards for special customers who buy from your business frequently. Whatever you choose, here are three ways they can boost profits.
- Word Of mouth
Once a customer is made to feel special, through a loyalty program, they are more likely to refer a friend. Once the friend sees how special the loyalty program is, they are more likely to become a regular customer, and the cycle continues. Word of mouth is key to marketing your services.
- Purchase Frequency
Reciprocity is the end game for the customer to use a loyalty program is to get something free or for a discount, but to get there, a customer will need to come back again and again. They may need to use the card over a period of time and this brings them back and buying your product or service. If a customer feels like they are getting something for their efforts – if the reward is good – they will come back.
- Cost-Effectiveness
The cost of creating a few cards and initiating a program is much cheaper than advertisements in the local newspaper, on the radio, even online. You can promote the loyalty program on social media and your website, but once you have a great loyalty reward and a well-managed program in place, people will come back all on their own, and they will tell their friends. The entire program can end up paying for itself. It costs a little, but the rewards reaped can last for years; a loyal customer will keep being a paying customer if they love the rewards they get.
If you are looking for a way to boost your business profits and keep customers coming back, but lack the funds for an expensive advertising campaign, consider a loyalty card program. In Canada, using loyalty cards is popular for a reason! So, get a card printer and start printing the cards you need to start a loyalty program. The initial investment compared to the potential benefit you get from it makes it a great and business savvy way to get customers in and then keep them coming back. Plus, they’ll tell others about it, and that increases your customer base!
