Loyalty Card

Loyalty cards reward customers with points, discounts, or benefits for repeat business. They’re common in retail, supermarkets, and restaurants, fostering customer loyalty and providing valuable data for marketing and customer relations.

Customer loyalty programs help businesses maintain customer engagement, reduce marketing costs, and build detailed customer profiles for targeted transactions. Customers also benefit by receiving special offers, discounts, early access to new products, credits for future purchases, and personalized recommendations based on their shopping habits.

What is Trends of Loyalty Card?

The figure clearly shows a significant increase in loyalty card adoption over the past five years. In 2019, the growth rate was 60%, whereas by 2024, it has surged to 80%.

6 types of Loyalty Program

1) Points-Based Programs

With every purchase, customers earn points that can be exchanged for benefits or savings.

2)Tiered Programs

Increasing rewards are unlocked as customers advance through multiple levels (tiers) based on their spending or engagement.

3) Cashback Programs

A portion of the purchase price is returned to customers in the form of cash or store credit.

4) Discount Programs

Customers obtain special pricing or access to unique discounts on goods and services.

5) VIP Programs

Programs are only available to high-spenders or devoted customers, providing customized benefits and services.

6) Non-Monetary Programs

Incentives are determined by non-monetary actions such as survey completion, social media shares, and referrals.

Point Based Loyalty Program

Consumers who make purchases are rewarded with points under point-based loyalty schemes, which are common in restaurants and retail. Points can be accumulated and exchanged for deals or complimentary goods and services, increasing customer satisfaction and loyalty.

Example: FonePoints is an example where points are collected by making a payment through mobile banking. For instance, you can offer a 5% discount for every 1,000 points that a customer accumulates or redeems.