How to make the loyalty program more effective
By TOI Staff
October 14, 2023
Update on : October 14, 2023
A loyalty program is one of the most popular marketing tools that helps build a customer base. Its main element is a loyalty card, which accumulates bonuses or provides discounts on purchased products. It is hard to imagine a company that would not use this effective and simple tool. But it can be even more attractive for customers if used as a full-fledged Payment Card Solution. We will tell you how a loyalty card can become a payment means and what it will give to a company. Let’s consider the advantages of a classic loyalty program.
What is a loyalty card?
Loyalty cards allow customers to spend money at a certain point of sale and receive pleasant discounts and gifts or accumulate bonuses for their next purchases. This marketing move allows you to increase customer flow and improve the brand’s reputation. Loyalty payment cards can be of several types:
1. Discount. It provides discounts on certain goods and services. They are inexpensive for the company because they have a low production cost.
2. Accumulative. The more the client uses it, the more discount he gets. Such a card motivates you to make more purchases, which leads to an increase in the total amount in the check.
3. Bonus. The discount is in the form of points credited and accumulated on the bonus account after each purchase.
4. VIP card. It is a limited number of cards for selected buyers. They receive separate discounts and additional promotions. The card increases the importance and weight of its holder.
Loyalty cards not only help to attract customers and expand the existing customer base but also are an additional incentive for more active shopping in a particular retail outlet.
Standard loyalty cards have limited functionality as they are developed based on outdated technology. They cannot be used as an independent payment instrument, which causes certain inconveniences to customers. Co-brand Solution is devoid of this disadvantage. With its help, you can make any loyalty program even more effective.
How to use it for business?
With the help of a convenient modern platform, you can organize independent Card Issuing. These can be not just loyalty cards but full-fledged Visa payment cards. Their functions to accumulate bonuses and provide discounts will be extended by the ability to pay for purchases, make prepayments and even set credit limits. These can be both physical loyalty cards and virtual bonus cards. You need to install the corresponding mobile application on your smartphone to use them. In addition to the virtual card, you can order a plastic carrier.
Identification of cards will be made by number. It can be printed on a plastic carrier or embedded in a special chip. When making purchases, the client is identified through Visa BIN. The cost estimation system minimizes the risk of fraud with such cards, so you can be sure that all purchases made with their help will meet the company’s criteria. The customer is notified about all transactions in real-time.
For special customers, Wallester offers White-Label Card Issuing. These are personalized cards with an exclusive design that will help to increase brand recognition. Not only are loyalty cards designed in the same style, but also the platform for managing them and the mobile application.
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