Business Growth With Plastic Loyalty Cards

The incessant economic turmoil is having a profound effect on businesses. Some European countries are entering a recession for the second time, while many others around the world are close on their heels. Perhaps most concerned by the effects of these economic slumps are businesses which do not have adequate reserves or assets to see them through trying times – most notably small and medium enterprises. The result is that they spend their funds on acquisition and retention campaigns; sometimes with success, often without. Plastic cards used for business marketing provide an affordable foundation that can attract new customers, and ensure existing ones keep coming back.

Frugality has been noted as one of the most pertinent effects of economic downturn. Consumers have become less willing to spend and, when they do, they often opt for the more affordable option. This has resulted in many retailers and service providers incentivising their products: 2-for-1 deals and “50% off!” have become commonplace. Arguably, one of the ingredients of a successful marketing campaign is an incentive. Retailers have, however, found that too many incentives too often drain their stock, subsequently costing them more money. As a solution, retailers are now implementing loyalty programs.

Loyalty programs often rely on the use of a plastic card issued by the business. These are known by different names throughout the world: “loyalty cards” in the United Kingdom and South Africa, “rewards cards” or “points cards” in Canada, and “discount cards” or “club cards” in the United States. They are either bar-coded, chipped, or contain a magnetic strip. These mechanisms allow the retailer to read basic information about the card holder. When a customer presents this card while making the purchase, he or she may be entitled to a discount, or accrue ‘loyalty points’ which can later be used for discounts on products, or other incentives.

The benefits this system offers to small- and medium-sized businesses are manifold. The promise of incentive (discount, free gift, etc.) ensures that the holder keeps the card in an easy-to-reach place, often within sight and among other plastic cards, which means there is a greater chance that the issuer of the card (the business) is remembered and visited again. The advancement in technology has allowed for complex information to be stored on the magnetic strip or chip, which may facilitate convenience (such as swift identification) at the point of purchase. The information can also be linked to online customer profiles to facilitate the business’s online retailing endeavours.

Whatever the business, plastic loyalty cards have become a major boon in troubled economic times, all around the world. As opposed to earlier years, they are now easy to manufacture, easy to distribute, and simply require an effective loyalty program to ensure that new customers join up, and that existing customers keep coming back.