This is the age of competition; customer retention is the key aspect of any business to keep the business going in a cash cow. For this purpose, big retailers offer various incentives to their loyal customers either in discounts or presenting gift boxes to keep the customers coming to their places for shopping and increase the revenue of the company. Customer loyalty cards are also part of such schemes where retailers issue identity cards to their loyal customers and credits are cumulated for future discounts after every transaction.
The process is quite simple, that is; each time customer buys something from the shop, he will simply swipe the card instead of paying in cash and against each swipe of the card, points are electronically stored on the card and these points can be later exchanged with goods or services.
This is also a secure and tension free way of purchasing because the world is heading towards a cashless society. Therefore, instead of carrying hundreds of dollars and making the cash wallet bulky, it is convenient to simply put an electronic card in it and use whenever required. It is also safe in the sense if a wallet is lost or stolen, one can lose his money with no possibility of getting it back.
However, if an electronic card is lost, it can be blocked immediately so that it can’t be misused by an unauthorized person. Retailers often present loyalty cards to their customers as a surprise souvenir on special events like birthdays or work anniversaries. They use good looking gift cards box for this purpose to make it look elegant and protect the card from damage during shipping. There can’t be a better surprise than this for anyone to get a discount card from his favourite shopping place.
Therefore, it creates a real positive impact on the customer’s mind about that brand. It can also be beneficial to offer loyalty cards to customers who have not visited the store since long because it might be possible that customer has some concerns in his mind about the mart but did not discuss the matter with concerns and made his mind of using another store. For example; a customer might have felt to be overlooked by the store staff during peak hours and would mind that behaviour. In this case, getting back to that customer and offering him a discount can be helpful to make the customer feel that the company really cares about its loyal customers and doesn’t want to lose their relationship.
