10 May 2022
Loyalty cards are more than just a card that your customer puts in their bag and collects stamps on once in a while. 60% of US households make purchase decisions based on loyalty schemes, so an effective loyalty card is the way that your brand can build a community and increase customer retention. Since 82.4% of consumers prefer to buy from companies that offer loyalty schemes, why wouldn’t you input one for your brand or take your existing one to the next level?
Typical companies make 65% of their overall income from existing customers. Considering that 92% of consumers trust personal recommendations rather than marketing, the good thing is that your existing customers will become your brand advocates, giving you a lot of free marketing. A loyalty card makes your customer feel like they get something back for giving your brand their business – yes they get the product they wanted, but a loyalty scheme will make coming back that much sweeter. Finding a way to give back to your customers means that you are building a long-lasting relationship with them where your brand offers rewards, perks and personalized touches, (such as the Paperchase TREAT ME £5 off on a customer’s birthday) it won’t take away from your business – it will just add more value.
50% of returning customers are more likely to buy a new product and 31% are more likely to spend more on a purchase than new customers. 58% of consumers shop once a month at shops whose loyalty schemes they’ve signed up to, this means that you’re more than likely to see an increase in repeated sales once you input a loyalty scheme.
So which brands have the best loyalty schemes? Well according to Shopify the winners are:
And a brand that doesn’t have a loyalty scheme but still has an amazingly loyal customer base? Well, there are few examples as good as Apple – this tech-giant doesn’t have a loyalty scheme but Apple never fails to sell, get good reviews and increase their customer retention with each new product they release. Their slick website, annual releases and constant updates as well as product teases mean that loyal customers always have something to look forward to.
However, while consumers are on average members of 14.8 loyalty schemes they’re only active in 6.7 of them. So what’s the secret of a successful loyalty scheme? And how can you ensure that your brand is one of the 6.7 which customers actually use?
Well, here’s what consumers are looking for in a loyalty scheme:
Want help designing a loyalty card that will have your customers coming back for more and your brand thriving? Check out this case study from our collaboration with Delta, when we helped to create a limited edition PAK celebrating their airline which would be available as an exclusive collectors item for their most loyal customers.