6 Key Benefits of a Digital Customer Loyalty Card Scheme

Did you know it is 5-25 times more expensive to acquire a new customer than it is to retain an existing customer? It can often be underestimated with how important customer loyalty programs are. Loyalty programs help drive differentiation and sustain a competitive advantage. The use of a loyalty card scheme allows businesses to have greater insights with their customers, helping to create strategies to suit each customer.

How Does a Loyalty Card Scheme Benefit Businesses?

The ultimate goal of a loyalty program is to retain customers by rewarding them for their repeat purchase behaviour. In fact, research has found customer loyalty being improved based on how emotionally close the relationship between the seller and customer is. Which means a stronger relationship with your customers will enhance the trust the consumer has for your business and more likely to repeat purchases.

Customer Loyalty - It Is Important...

Within the evolving business world, competition is constantly increasing. It has become more critical to focus on strategies of customer retention as it is more advantageous to keep existing customers than acquiring new ones. For example, the graph below conveys how more consumer’s are very likely to repeat purchase a product they like as opposed to trying out different products. Which stresses the importance to act upon brand loyalty as it is more successful to retain consumers than acquiring new ones.

Focusing on factors such as the quality of a service, product quality, process improvements and service speed are some of the factors important for customer loyalty. It is common for businesses to mistake customer inertia for customer loyalty. Some customers may simply use a product or service due to habit as opposed to being loyal to a business. Loyalty is a genuine emotional attachment which occurs when consumers appreciate the value of your product or service as well as the way it is delivered - which is why it is extremely important!

What Are The Benefits of a Customer Loyalty Card Scheme?

Think about the business you own or work for...Can you identify any loyal consumers? Or are you unsure if they can actually be identified as a ‘loyal’ customer? Customer loyalty is usually defined via measurable metrics such as conversion rates, sales increase and enrolment increase. However, an effective measure to define customer loyalty is via the use of a customer loyalty card scheme which is a great way to acquire new and retain existing consumer’s.

If you’re still on the fence, we have gathered 6 major benefits of a customer loyalty card scheme…

1. Customer loyalty programs have a range of benefits…

…including becoming an expected part of the consumer experience. In fact, findings by Nastasoiu and Vandenbosch (2018) state through personalisation, companies can leverage the knowledge they already have on their customers to tailor offers they find relevant and appealing!

2. Service quality positively affects customer loyalty…

…which means the better the quality of service provided, the greater the number of loyal customers attained!

3. The mobile app market is the fastest-growing segment in the mobile industry…

More and more consumers are using smartphones. In fact, studies have forecasted the number of mobile users to increase to 7.33 billion in 2023!

4. There is a greater demand for eco-friendly products…

…and social responsibility from companies via sustainability and green practices. Online loyalty card schemes remove the need for paper cards - which means saving paper! And within recent years, consumers are willing to pay more for eco-friendly products - score!

5. It is important to understand an online loyalty program is an investment…

Customer retention strategies are often less costly than implementing strategies to acquire new ones!

6. Technology is the future…

Technology has evolved the world and shaped the modern era. Using an online loyalty card scheme conveys an organisation’s commitment to being modern, eccentric and savvy! Online loyalty cards also create a much closer bond with the business and consumer, helping to meet their needs!

Magic Stamp…A Revolutionary Concept!

With the use of technology and innovation, loyalty cards are now accessible via a smartphone which means long gone are the days of tattered paper cards! Magic Stamp is a digital loyalty card scheme to help businesses strengthen their relationship with their existing and new customers, whilst providing a convenient way of keeping their loyalty cards and enjoying the perks of a business.

A digital and multi-brand platform, which eliminates the need for complex tech such as QR codes, NFC and Bluetooth (etc) - it’s so easy for consumers and businesses to connect. Consumers simply need the Magic Stamp app and businesses only require a Magic Stamp! A completely frictionless engagement for the user and a great retention strategy for your business!

Using Magic Stamp will provide your organisation with a range of benefits to improve your business performance and be part of a revolutionary concept. Your business will not only grow but also revolutionise - Watch the Magic Stamp Video to find out more and sign up for Magic Stamp today!