LOYALTY CARD SOLUTIONS
What can you do to increase your customer purchase frequency and protect your customers from the offers of competitors..? REWARD THEM- with a Loyalty Card Program
Research has shown that it costs up to eight times more to acquire a new customer than to keep an existing customer coming back. Yet many merchants continue to focus their attention on ways to attract new business while paying little or no attention to securing and building value with the customers they already have.
Setting up a loyalty program is easy. A merchant signs up a valued customer and gives them a loyalty card. The merchant sets the point values and reward levels the customer can achieve. By returning again and again customers earn points, which equal a discount or a reward for their loyalty to you, the merchant. Effective reward programs increase repeat visits and average spending per customer.
Points for Purchases: The first step towards creating a loyalty program is deciding what point value to assign to customers purchases. Below are examples of point programs.
$1= 1 point (recommended)
$1= 10 points (or other amount)
1 purchase= 50 points (or other amount)
Award Levels: The next step is to decide what reward(s) to give your customers when a point level is reached. Rewards can be products, services, discounts or dollar value added to the card.
Auto Reward Program-the easiest loyalty program and one of the most effective. A merchant simply chooses one point level that will trigger an automatic dollar-value added to the customer’s card.
Ex. $1= 1 point. 50 points equal $5 reward
Auto Rewards customers are continuously motivated to return to your store because they have dollars or points on their cards at all times.
Open Redemption Program- this program has no rewards levels at all. Points are simply added to the card or redeemed in any amount the merchant chooses.
Multiple Award Level Program- A merchant can set up to 6 Award Levels. Each time a customer reaches a level the terminal prints a message announcing that a reward level has been reached. The cardholder then has the choice to redeem an award or continue to accumulate points.
Customer Data Mining: Reports can be generated from the demographic information, (name, address etc.) which is tied to a specific card. This gives the merchant the ability to target certain customers with marketing offers based on card usage.
Call us at Source One for additional information how you can set up a loyalty program for your business. (888) 717-6872.