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Our services
• Carry out a customer satisfaction
study to ascertain the perceived performance of all aspects of your products
and how they are delivered and rectify all weaknesses.
• Develop a customer retention
strategy
Loyalty programs explained
Loyalty programs are
structured marketing efforts that reward, and therefore encourage, loyal buying
behaviour — behaviour which is potentially of benefit to the firm.
In marketing generally
and in retailing more specifically, a loyalty card, rewards card, points card,
or club card is a plastic or paper card, visually similar to a credit card or
debit card, that identifies the card holder as a member in a loyalty program.
Loyalty cards are a system of the loyalty business model. In the United Kingdom
it is typically called a loyalty card, in Canada a rewards card or a points
card, and in the United States either a discount card, a club card or a rewards
card. Cards typically have a barcode or magstripe that can be easily scanned,
and some are even chip cards. Small keyring cards (also known as keytags) which
serve as key fobs are often used for convenience in carrying and ease of
access.
A retail establishment
or a retail group may issue a loyalty card to a consumer who can then use it as
a form of identification when dealing with that retailer. By presenting the
card, the purchaser is typically entitled to either a discount on the current
purchase, or an allotment of points that can be used for future purchases.
Hence, the card is the visible means of implementing a type of what economists
call a two-part tariff.
The card issuer requests
or requires customers seeking the issuance of a loyalty card to provide a
usually minimal amount of identifying or demographic data, such as name and
address. Application forms usually entail agreements by the store concerning
customer privacy, typically non-disclosure (by the store) of non-aggregate data
about customers. The store — one might expect — uses aggregate data internally
(and sometimes externally) as part of its marketing research.
Where a customer has
provided sufficient identifying information, the loyalty card may also be used
to access such information to expedite verification during receipt of cheques
or dispensing of medical prescription preparations, or for other membership
privileges (e.g., access to a club lounge in airports, using a frequent flyer
card).
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