Should Your Business Consider a Loyalty Program?

A loyalty program is a system which involves trading personal information for a discount on a product.

A typical system is the punch card. You register, giving up your name, email address and maybe some demographic info, like your gender and age and in return you get your 10th cup of coffee for free. The card is presented at the café every time you visit and you measure the progress as you closer to getting that free coffee.

Does Your Business Lend Itself to a Loyalty Program?

The types of businesses which would benefit from a loyalty program is a business where your customers need your services frequently, like a coffee shop or a grocery store. The goal is to encourage people to come back rather than going to your competitors. If they are carrying your card, then they are more likely to come to your location.

The Story

My husband and I carry Petro Canada point’s cards. Therefore, we do not buy gas anywhere else. We have occasionally driven out of our way to get to a Petro Can when other stations would have been more convenient. We don’t look for a gas station, we look for a Petro Can.

I see the same thing with groceries. People drive by a store to get to the one where they are collecting points.