Rewarding Customer Loyalty In Retail Marketing

by Adrianna Noton


Creating customer loyalty is very beneficial to a retail enterprise. Standard retail marketing techniques have arisen that encourage customer loyalty. Customer loyalty programs range from simple paper punch cards to sophisticated credit card like membership cards that can be swiped. It appears that everyone is getting into the customer loyalty thing. You cam find programs in your local tiny latte bar to the major commercial chains.

These programs go under many different names but basically all do the same thing. They are called advantage cards, club cards, point cards, or loyalty cards. The customer fills out a simple application form at the store when they make a purchase and a card, which looks much like a credit card, is issued. These cards have a magnetic strip and the computerized point of sale systems can read them when the card is swiped. Often a smaller key card is issued at the same time. The key card can be attached to a key ring.

Although most people still call them cash registers, it is rare to see an actual cash register these days. Customer payments are done via sophisticated computerized point of sale systems that operate over vast computer networks. Point of sale systems communicate with inventory systems, restocking applications, sales commissions systems and sales promotion applications. Point of sale systems give executives and managers instantaneous information regarding sales trends.

Card holders receive special promotions and discounts. They become eligible for contests and rewards. They will receive emails that have printable coupons for further discounts and savings. Sales receipts will contain an URL to a website where an online survey is conducted. The online survey will ask customers to give feedback and comment on the quality of the service they received. A raffle like contest is conducted along with the online survey that gives the customer a chance to win cash prizes.

Almost all the major commercial outlets are offering these type of card club loyalty programs. Customers certainly appreciate them and they are very beneficial to the commercial business. Even smaller local commercial stores are sponsoring these types of programs. Restaurants also are beginning to organize loyalty clubs. Just about any type of commercial business can use this type of structured loyalty marketing programs. In addition to issuing the credit card style loyalty club card, businesses issue smaller key cards, which are small cards that can be conveniently hooked to a keyring.

Owners of commercial sales outlets have an ulterior motive in issuing these cards besides increasing sales. Because the cards communicate with the store's point of sale computer systems, their databases can track each individual's purchases. This enables the commercial sales operation to target ads specifically to the purchasing habits of individual card holders. Inventory can be more efficiently managed. This benefits both the commercial sales outlet and the customer since the customer is getting the products they want and the business is increasing sales.

Invasion of privacy issues have been raised, however, about customer reward cards. Some customers feel uncomfortable with a company maintaining a database with the details of every purchase they have made. The fact of the matter is, however, that no one forces a customer to join these customer loyalty programs. Quite the contrary, most customers want these programs because they save money and they are assured of finding the products they desire on the shelves.

A Customer loyalty Reward program and customer reward cards are such an integral part of retail marketing that is hard to imagine them ever going away. If anything, they will only grow more sophisticated and effective as the technology and software continues to improve. Clearly, both customers and retailers benefits greatly from these marketing programs.




About the Author:

Creating Reward program since 1981, we'll design a Loyalty One strategy to meet your goals, surpass your customers' expectations, and inspire long-term loyalty and growth.


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