Loyalty card sales gave a huge $97 billion in 2007, up from $83 billion in 2006, according to data from The Tower Group as cited in The New York Times. 2008 holiday season sales have not been finalized, but loyalty card will probably pass the $100 billion mark for 2008. According to a January 2008 National Retail Federation survey, 79.7% of consumers said that they plan on buying at least one loyalty card during the next holiday season.
In 2007, an interesting trend occurs among consumers where most of them did not spend all the value in loyalty cards in one month. Furthermore, it is estimated that around 15% buyers never cash in the loyalty cards and 30% of card value was never redeemed.
Characteristics of loyalty card users:
- 56 % prefer having the ability to reload or add value to a loyalty card once used.
- 69% prefer a loyalty card for which they can choose the stored value versus pre-sets.
- Consumers are 10 times more likely to buy a loyalty card over a paper certificate.
Advantages of Loyalty Card?
- Controlling what you spend
- Efficient method of rebate fulfillment
- Speedy reward issuance
- Custom tracking and measurement of submissions
- Gift card serves as a mini-billboard advertisement
So...if you already accept credit cards and have a terminal or POS system, you can also issue and accept loyalty cards. Your bankcard processor will add the necessary programming to your existing hardware. You can choose from a variety of pre-designed card templates, or have a custom card created.
Loyalty Card
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