Loyalty programs really do work. They are very popular with consumers and now it is easier for you, as a business owner, to ensure they have your store card with them at all times.
If your store or business is not using a loyalty program you are missing out on big profits.
“As a customer’s relationship with the company lengthens, profits rise. And not just by a little. Companies can boost profits by almost 100 percent by retaining just 5 percent more of their customers.” – F.P. Reichheld, author of “Loyalty Rules!” and one of the world’s leading authorities on business loyalty.
Loyalty program shoppers generate between 55% – 70% of company sales. And that percentage of sales comes from only 12% – 15% of customers who are loyal to a single retailer, according to the Center for Retail Management at Northwestern University.
Some food retailers find that as much as 65% – 95% of their sales go to members of loyalty programs (53% of food retailers offer loyalty programs with 75% of program customers using their loyalty cards at least weekly and 88% at least once a month).
Here’s the challenge and the solution to loyalty cards
The challenge with loyalty or club cards is that many retailers offer them and consumers are finding that carrying around multiple plastic cards takes up alot of space in their wallet or purse – that is if they don’t misplace them altogether.
The solution is digital loyalty cards.
Thanks to a company called, CardStar, your loyalty customer can easily create digital loyalty cards from the ones in their wallet using an app available for iPhone, Android and Blackberry devices.
Customers can whip out their smartphones at a CVS Pharmacy, for instance, and have the merchant scan the image of a barcode on the phone’s screen, which is more convenient than carrying a multitude of plastic cards around with you.
The technology is a platform for a number of types of “merchants,” from big retailers like CVS and Best Buy to airlines and libraries: practically for every plastic card besides credit cards.
FYI: Customers that do not have a smart phone can get the CardStar Card, that consolidates all their loyalty cards.
Customers will never get caught without your card again when they can effortlessly access your loyalty or club card on-the-fly with a single touch on their smart phone whether they are at a retail store, the grocery store, the gym or making travel plans online.
Easily target and track your loyalty program results
- CardStar merchants can create the right offers to the right customers in real time via geo-targeting features — strengthening customer loyalty by guiding the shopping experience.
- CardStar also provides a deep level of customer analytics, enabling merchants to tailor marketing messages and promotions to mobile customers.
CardStar and Foursquare connect loyalty cards to check-ins
The check-in game, as popularized by location-based service Foursquare, now has more value and more interest by tying it to a real-world deal, like getting a cheaper beverage at a coffee shop in return for frequent check-ins.
When users have their digital loyalty cards scanned, they can check in with Foursquare using the same app, making it convenient, and also validating the check-in by proving they were actually at a given location.
For Foursquare and CardStar, the integration is about expanding their demographic.
Foursquare has around 2 million users, and CardStar boasts about 600,000 active users. CardStar CEO, Andy Miller, said there isn’t much overlap between the services’ users (“Half of our users are soccer moms, who I don’t think use Foursquare a lot”), which makes this a means for reaching new users and developing both the check-in and the loyalty card further.
Mobile Marketing Power will help you implement the power of loyalty cards and location-based services to effectively reach your customers on their mobile phone.
Question: What loyalty program offers have high response rates for your business? Comment below.