Membership cards serve as a vital marketing tool that is great for a company looking to garner repeat business and increase customer loyalty. Whether product or service based, companies often encourage their regulars to apply for membership cards in order for them to receive additional benefits, such as members-only discounts, priority access, point-based rewards, etc. Membership cards are either awarded to customers for free after certain amount of money spent, or purchased especially when more prestigious and exclusive benefits are offered.
Extra Incentives for Members
Membership cards give businesses a chance to offer extra incentives, be it monetary or non-monetary, to their patrons. An example is point-based incentive programs where members can redeem points for rewards like discounts, vouchers or other goods. Other benefits associated with membership cards may also include free delivery, one-to-one or 24-hour services. Most businesses rely on their unique member benefits to set them apart from their competition.
Promote Customer Loyalty
If the privileges successfully attract the customers, membership cards can build a closer bond between the brand and its target consumers. Consumers are unlikely to patronize a different brand when they are satisfied with the benefits they receiving from the current one.
Enhance Customer Database
Magnetic strips can be attached to membership cards to allow companies to collect information when a sale is made. The details are useful in analyzing the consumers’ spending habits and preferred choices. Companies are then able to effectively market their brands according to the data and promote customer loyalty. For instance, a supermarket may reward their members with discount vouchers for specific products based on the bestsellers shown in the database.
Improve Sales
Businesses can encourage their customers to spend more with well-planned reward programs. Tiered discounts, for example, can increase sales, as the customers need to spend more to reach the minimum amount required for the rewards. Different categories of membership cards can also be provided to get customers to agree on spending a certain amount during a fixed period.