What Are the Most Worthwhile Loyalty Card Promotions?
Customer retention is vital to the success of your business. Don’t ignore it — because it’s also not that complicated. If someone buys something from a business and enjoys the product, they’re probably going to buy something from them again, right? Of course. That’s common sense.
Unfortunately, many businesses forget to market to the customers they already have. And that lack of focus on driving customer retention leaves a lot of business untapped.
Not sure what to do to drive customer retention? We’re here to help. An easy way to drive return customers is a thoughtful and well-planned loyalty card promotion program. While you can always do “buy 9 get the 10th free,” you’ll stand out if you find different ways to reward customers for choosing your business.
Beyond providing an excellent service or product, showing that you respect customers’ loyalty by offering rewards or benefits is effective for developing a long-term relationship with them. Just think about your favorite credit card. It’s probably the one that provides the best offers or rewards for your life, right? If you can strike the right chord with a customer, they’ll have that loyalty for years.
So what are the most effective loyalty card promotions? We’ve put together five strategies to get you inspired.
5 Loyalty Card Promotions That Are Sure to Impress
Customer loyalty card promotions are one of the most effective ways to improve customer engagement and retention while boosting revenue by increasing customer lifetime value.
This is particularly true in competitive industries like the food and beverage world. These programs give customers another reason to choose your establishment versus the competitor down the street — and this relationship will naturally grow as customers visit more often.
Think about it from your own perspective. You return to the places that take care of you, right? Apply that same philosophy to your business.
Hoo, buddy. There’s nothing like that sweet, sweet feeling when you hit the 9th coffee and get the next one free. Pure ecstasy, baby!
We’re joking. It’s just a few bucks, right? Obviously, but it’s also so much more than that. As a business, the coffee shop will barely notice the marginal loss of that income, but the customer keeps it in their mind. Free coffee is a great start to the day and something for customers to consistently work toward. It’s gamifying a purchase.
The point is — customers remember when a business takes care of them.
Depending on the type of business, there are several ways to approach discount loyalty cards. Here are a few common examples. Once a customer signs up, they can get some form of the following:
- Ongoing Loyalty: Buy 9, get 1 free
- Permanent Discount (5%)
- Discount After a Spending Threshold ($5-$10 off $100)
4. Sign-Up Promotions
Sign-up promotions are a simple way to encourage customers to commit to a long-term relationship with your business or brand. These types of programs not only incentivize customers to sign up because they’ll receive a discount, coupon, or a free gift — but they’re quietly beneficial for future marketing.
When someone signs up for a loyalty program, they actively choose to engage with your business. That’s huge and a first step towards loyalty. What’s more is that when they sign up, they also offer some of their personal information — such as demographic data and purchase behavior.
Those are handy tools for marketers to personalize future promotions and cater to a specific type of person, increasing the likelihood of future engagement. They also won’t feel like your marketing materials are junk because they signed up for it.
3. Tiered System
Loyalty tier systems are a way to encourage customer retention. Create benefits or discounts that increase in proportion to the lifetime spending of a customer. Easy, right?
For example, let’s say a customer with a loyalty card reaches a $500 lifetime spend with your business. Can you offer them some sort of reward? Maybe it’s a monthly raffle or perhaps better discounts or coupons.
Whatever the offer, these tiered systems create a sense of a special and exclusive club. You’re saying to the customer, “Hey, I know you like our business, and we appreciate the money you’ve spent, so we’re offering you — and only you — this thing to say thank you.” Think about those special lounges in airports for travelers who’ve achieved different statuses.
An effective tiered loyalty promotion system connects with the human desire to get exclusive things. Moreover, a well-designed tiered system loyalty program can grow business and increase customer happiness.
2. Points System
A points system might be the most straightforward loyalty program. Dollars spent correlates to a points value which can be used in place of money to buy items. This works very well because it creates a “currency” that’s specific only to your business.
Let’s say, for example, you own a craft beer store. That’s already generating a specific type of customer. Now, if you provide that particular type of customer with a great selection of their interests and a currency they can only spend at your establishment, that’s a beautiful recipe for customer retention.
Not that complicated of a loyalty card program, right? Sometimes, the best ideas are the simplest.
1. Monthly Memberships That Offer Freebies
Another way to think about loyalty programs is memberships. This doesn’t mean the customer needs to pay to join. Instead, they just sign up and then automatically receive a monthly freebie, whether that’s a complimentary beverage, appetizer, or something else through an email or text marketing.
This encourages customers to come through your door at least once a month, and they’re much more likely to spend money beyond whatever their freebie is. Plus, if it’s a good program, they probably won’t come alone and that means bigger transactions for you.
Smart Loyalty Card Programs Can Increase Customer Engagement, Retention, and Grow Your Bottom Line
It’s not hard to see why loyalty programs are an effective form of marketing. People want to be taken care of. Of course, your average customer isn’t expecting to receive awards or benefits by paying for your goods or service, so when they do, it’s all the more impactful.
Don’t overthink it. Find the loyalty card promotions program that works best for your business — and we’ll help you create a custom-printed loyalty card.
- Tags: Loyalty Cards
- Nashira Edmiston