About Customer Loyalty Cards
Customer loyalty cards are a way for companies to build loyalty and for consumers to get something for free in exchange for their purchases and information about their buying habits.
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History
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The first loyalty programs were the trading stamp programs of the 1800s, which gave stamps to customers that then could be redeemed for discounts or special items. These evolved into frequent flyer programs, grocery store cards and other loyalty programs used today.
Consumer Use
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Surveys by Jupiter Research have determined that more than 75 percent of consumers use loyalty cards, and about one-third of consumers participate in two or more loyalty card programs.
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Consumer Benefits
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Customers using loyalty cards earn a variety of products and discounts for their participation. Common rewards include frequent flyer miles, a free item after the repeated purchase of similar items and exclusive discounts or access to special sales.
Company Benefits
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Companies use the data they get from customer loyalty programs to target advertising at specific demographics. They also build brand loyalty among consumers by encouraging customers to come to them instead of going to a competitor.
Safety
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In March 2010, customer loyalty cards from grocery stores were used by the Centers for Disease Control and Prevention to track an outbreak of salmonella to specific products and warn customers that those foods had been recalled.
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References
- Photo Credit caddie dans une gare de paris image by iMAGINE from Fotolia.com
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Comments
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Jeffrey Summers
Mar 23, 2010
The points based "loyalty programs" you write about are anything but. They are nothing more than frequency schemes that do not create, build, support or facilitate real, organic loyalty. Using them to try and create loyalty is like filling up your bathtub without a drain plug. You need to talk to more educated and informed sources with real successful experience on the subject. This doesn't cut it.
