What is the definition of a loyalty card? Effective ways to accumulate customer points.

Currently, customers are enjoying various benefits, especially through loyalty cards. This type of card brings special benefits to customers. However, in order to take advantage of these benefits, you need to have the necessary knowledge. In this article, let’s explore how to earn points for customers!

What is a loyalty card?

A loyalty card is a tool used to encourage and ensure customer loyalty. It is a variation of the VIP membership card, providing special benefits to users. Loyalty cards can be used in various industries such as fashion, restaurants, or electronics.

With the development of technology, loyalty cards can be implemented both online and offline, providing convenience for management. Customers can accumulate points through purchasing or using services and then use the accumulated points to receive benefits such as discounts or gifts.

The benefits of loyalty cards for businesses

Loyalty cards bring benefits to businesses in terms of marketing and increasing sales, specifically as follows:

Easier customer information management

Information registered on loyalty cards, including phone number, address, and other details, is essential for accuracy and reliability. 

This process of collecting information should be designed in a simple and convenient way for customers to easily share. Through loyalty card registration, you can identify a group of customers who have a need for using the product or intend to return in the future. This allows us to effectively manage this customer group, facilitating the implementation of subsequent communication campaigns and marketing efforts.

Increase order value

A common way to increase order value is to implement a loyalty point program for customers. However, a common issue is that many businesses round down the points. For example, a purchase over 100,000 VND may earn 1 point, but a purchase over 150,000 VND would still only earn 1 point.

To encourage customers to buy more, you can apply a more flexible point calculation method. Instead of rounding down, you should calculate points based on the total order value. For example, customers can earn 1 point for every 100,000 VND spent. This allows customers to accumulate more points by buying more, giving them more opportunities to redeem attractive rewards.

Building customer loyalty

Building customer loyalty is an important factor in the success of a business. To achieve this, the company needs to establish fair and transparent policies. Customers will appreciate a loyalty program with clear benefits based on accumulated points. This creates a distinction between regular and premium members, encouraging customers to continue purchasing and accumulating points.

Retaining existing customers is also an effective way to save costs compared to attracting new customers. Customers who have experienced the company’s products and services and are satisfied are more likely to continue supporting the company. The key is to provide customers with a good experience, sincere care, and meeting their needs. This helps build trust and loyalty from customers, while creating a long-term and sustainable relationship with the company.

Benefits for customers

Loyalty cards also bring many special benefits exclusively for customers when using services or purchasing products from businesses, specifically as follows:

Receive various benefits

A loyalty point program brings customers benefits such as discounts, gifts, or special offers. These benefits make customers feel satisfied and encourage them to continue shopping and supporting the store.

Customers can also use accumulated points to deduct the purchase amount in the future. This helps reduce costs for customers and creates a smart and beneficial consumer environment.

Receive attention from the business

An important benefit of a loyalty point program is that customers receive attention from the business. After obtaining information from the loyalty card, businesses often have dedicated customer care staff. Customer service and care for those with accumulated points are usually performed more attentively and enthusiastically compared to regular customers.

Customer care staff will have knowledge about the customer’s purchase history, preferences, and individual needs. This helps them provide better consultancy services, recommend suitable products or services, and address any questions.

Enhance self-value

Owning a loyalty card with high value or coming from premium brands can enhance self-value. This helps create a sense of respect and satisfaction for the cardholder. In rare cases, luxury brands rarely have promotional programs, but when they do, they usually only offer them to special customers. This creates a unique factor that makes many people want to accumulate points to affirm their personal value.

Popular loyalty card designs

To meet the needs of both businesses and customers, many types of loyalty card designs have been introduced in the market. Here are some popular types that you should consider using:

Business card integrated loyalty card

By integrating a loyalty card into a business card, businesses can save costs on printing and production. Instead of printing them separately, combining both into one product saves time.

The business card integrated with the loyalty card also helps enhance the recognition of the store. Customers will see information about the loyalty card and the business brand every time they use the business card. This helps customers remember and recognize the brand more easily, creating a more lasting impression and encouraging customers to come back.

Folded loyalty card

With a folding design, this loyalty card has a larger area than normal cards, allowing businesses to include more important information about products or services, including larger images, logos, contact information, and other details. This helps create a strong and attractive impression, capturing customers’ attention and effectively memorizing the product or business.

Custom-designed loyalty card

Custom design helps you create a unique and distinctive image that suits your brand and captures customers’ attention. The uniqueness of this design helps create a powerful impression and memorize the business image in the minds of customers.

However, you should note that producing custom-designed loyalty cards may be more expensive than traditional designs. To create unique designs, you may need support from professional personnel and use more complex printing and production technologies. Therefore, production costs may increase.

How to calculate points for customers

If you want to calculate points for customers using a loyalty card, you can apply the following methods:

Based on the order value

The method of earning points based on the order value is common and convenient for customer application. This is a way to earn points based on the actual value of the order through determining specific money thresholds or percentage rates to calculate points or discounts.

For example, if there is a 1,000,000 VND money threshold with 10 points, customers will earn 10 points for each order with a value above 1,000,000 VND. Or if calculated based on a percentage rate, for example, 5%, a 1,000,000 VND order will earn a 50,000 VND discount.

By implementing this solution, it encourages customers to make larger purchases to reach money thresholds and gain benefits from point accumulation. This also helps increase sales and order value for businesses.

Rank-based point accumulation

A rank-based loyalty point program provides customers with more benefits based on their accumulated points. Typically, stores will divide customers into different levels such as gold, silver, and bronze for easy customer information management.

With this type of point accumulation, the higher the accumulated points, the more benefits customers will receive. These benefits can include special discounts, exclusive privileges, gifts, or VIP services. This encourages customers to accumulate more points to reach higher levels and enjoy special benefits.

Redemption-based point accumulation

A redemption-based loyalty point program is often applied in the fast-moving consumer goods sector. Customers accumulate points and when they reach the specified number of points, they can redeem rewards such as gifts, discount vouchers, or purchase items at a discounted price.

The redemption period usually does not last too long to avoid wasting time and cost running communication campaigns. This helps customers feel motivated to accumulate points quickly and use the rewards within a limited time.

Considerations when implementing loyalty cards for customers

During the process of implementing loyalty cards for customers, you should note the following issues:

Stating card usage regulations

Regulations regarding the use of loyalty cards may vary depending on each store to avoid confusion and disputes. Some loyalty point programs may only apply to specific branches of the store. Typically, information about applicable branches will be provided to customers so they know where the loyalty card can be used.

Loyalty point programs usually have a usage period for the loyalty card. This regulation can be determined by a specific time, such as 6 months or 1 year, after which the accumulated points may expire and become invalid.

Who is the loyalty card for?

Loyalty point cards are only for one user, namely the cardholder. However, there are cases where users want to share benefits with friends or relatives. For small benefits, sharing the card does not have much impact on the store’s sales. However, if the value of the benefit is high or the card is used too many times, it can cause damage to the business.

Therefore, appropriate regulations or requirements should be in place based on the capabilities and resources of the company regarding the use of loyalty cards. Before providing cards to customers, you should clearly communicate the card usage regulations to avoid potential issues as mentioned. This helps ensure fairness and limit undesirable situations.

Conclusion

We hope this article has provided you with useful information about loyalty cards and effective ways to accumulate points for customers. This type of card is very popular in the field of product and service business. Therefore, if you want to attract potential customers, it is advisable for businesses to consider using this type of card.

See also:

• What is a driver? How to install drivers for graphics cards to work normally
• How to install drivers for standalone graphics cards easily and understandably

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