Customer Loyalty Cards: The Concise Model
Did you know it costs a business about 5-25X more to acquire a new customer than it does to sell to an existing one?
That’s not the whole story, existing customers spend 67% more than new customers. In summary, customer loyalty cards can be really beneficial – customer loyalty programs cover their cost very quickly.
There are statistics to support the setup of customer loyalty cards and programs:
• Customers with a loyalty card or program convert and spend with businesses they like more frequently
• Customers with a loyalty card or program spend more
• Customers with a loyalty card help promote your business
• In the UK, 16% of online shopping sales comes from repeat customers and in Europe it is 23%. These figures are steadily increasing.
We discover 5 top tips for implementing a Customer Loyalty Card model:
1. A simple points model is most effective
2. A tiered model to encourage more purchases as the customer progresses through the program
3. Consider an upfront charge for important customer benefits such as free delivery or free coffee
4. Consider partnering with another company to provide more offers and benefits
5. Consider using gamification – learn more about that from Forbes